Kenya’s water utility explores private financing

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Kenya’s water utility explores private financing

Water service providers in Nairobi, are working on a long-term resource mobilization strategy focusing on capital markets and private financiers to plug infrastructure gap.

Senior executives said on Wednesday that a shift to new sources of financing will help expand water and sanitation infrastructure in Nairobi.

"We have developed a policy framework to facilitate mobilization of resources from the private sector," said Athi Water Services Board CEO Engineer Malaquen Milgo.

He told stakeholders during the board's 10th anniversary that plans are afoot to list in the stock market and raise additional revenue for infrastructure development.

Athi Water Services Board is the implementing agency of a Nairobi water master-plan funded by the government and donors to achieve universal access by 2030.

The master-plan roots for development of new water sources and infrastructure expansion to meet a growing demand in Nairobi and 13 satellite towns.

Milgo revealed that Athi Water Services Board will soon advertise for a tender to construct a major reservoir in central Kenya.

"A private financier who wins the tender will develop the reservoir and install distribution pipelines. Under this arrangement, the private company will manage the water supply facilities until it recovers all the cost," Milgo told stakeholders in the water sector.

The Nairobi water utility has invested 3 million dollars annually to expand water and sanitation infrastructure in Nairobi and its satellite towns.

He revealed that the utility has secured concessional soft loans from bilateral and multilateral donors to achieve 70 percent water and sanitation coverage in Nairobi by 2016.

"By 2020, our water supply capacity will be above the demand curve if the projects are complete on time," Milgo told Xinhua.

Nairobi water utilities require 1.9 billion U.S. dollars to plug infrastructure gap by 2030.

Head of Finance and Strategy in Athi Water Services Board Rose Nyaga noted that financial shortfalls have undermined the implementation of bulk water supply projects.

"So far, we have raised a third of the 1.9 billion dollars required to implement the entire Nairobi water master-plan. Our next step is to mobilize resources from diverse sources including local private sector," Nyaga said.

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