June 10 (Bloomberg) -- Kenya is drafting a law to attract private investment as it seeks to cover a $40 billion financing gap in a plan to expand road and rail links and boost electricity generation, a Treasury official said.
The proposed Public-Private Partnerships Bill defines rules on how companies can invest to build and operate public projects, aimed at luring funds to step up infrastructure development, Stanley Kamau, a director at Kenya’s Finance Ministry, said at a conference today in the capital, Nairobi.
Kenya’s so-called Vision 2030 plan puts developing infrastructure at the center of a blueprint to raise economic growth to 10 percent annually by 2012 and sustain that rate through 2030. Expansion is expected to slow to 5.3 percent this year, from 5.6 percent in 2010, as drought cuts agricultural output, Finance Minister Uhuru Kenyatta said on June 8.
Kenya has acquired consultants to compile by the end of September a list of the top five proposed public-private projects to pursue, Vincent Rague, a financial adviser in the Finance Ministry, said at the same conference.
The legislation is meant to supersede a collection of laws that now govern public-private projects, including the Kenya Railways concession and the 90-megawatt Rabai power plant, according to a government statement handed to reporters today.
“The current PPP regulations are not comprehensive enough in providing legal certainty to investors,” it said.
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