President William Ruto has defended the government’s decision to partner with the Adani Group in various sectors in country.
Speaking during the groundbreaking for the 35MW Orpower 22 Power Plant in Nakuru, Ruto said Private-Public Partnerships (PPPs) allows the government to unlock resources without having to use funds.
Ruto explained that the Power Plant project is not funded by the government but an investment by the private sector.
“They are going to put their money, Ksh12 billion, into this project to generate energy and we will buy it from them,” Ruto said.
He stated that the project is an exemplification of a PPP.
He explained that the government needs the private sector to invest in such projects to unlock the resources the country has.
“With their investment we get energy, create jobs and expand industrialization,” he said.
Win-Win Situation
According to Ruto, there is a win-win situation when the private and public sector work together.
Ruto mentioned that people expect the government to borrow money to come and invest in such a facility.
However, he stated that is not the right way to go about such projects because the government doesn’t want to overburden Kenyans with additional taxes or loans when the private sector can invest.
“Through the investment of power purchase, we create nexus between public resources and private investments to unlock the potential for us to get our growth underway,” Ruto said.
Additionally, Ruto said it is the same principle that we used in developing the Nairobi Expressway in Nairobi.
Also Read: Ruto Reveals How French Company Was Chased From Nairobi-Nakuru Project
Ruto Defends Adani
Similarly, President Ruto defended the power transmission deal between Adani and KETRACO stating that it uses the same principle.
“The Adani Group are investing their money, Ksh95 billion, in the transmission line. We would have otherwise borrowed that money and burdened Kenyans. This is now a private sector investment,” he said.
The President urged Kenyans to support PPPs to help the government deliver development projects.
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He stated both the government, and the private agencies benefit from such partnerships.
“It is important for us as a nation to appreciate that a partnership between a public and private sector gives us a win-win outcome where we can deliver public services and goods using the efficiency of private sector to support overall development,” he said.
Adani Group’s power transmission deal with KETRACO, along with its plans to take over Jomo Kenyatta International Airport (JKIA), has drawn significant criticism from some political leaders and Kenyans.
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