Some 23 investors have shown interest in building dams in partnership with the government, in what is promising to mirror the energy sector’s independent power producers (IPPs).
The water ministry says it is targeting Sh500 billion from private investors. Water Cabinet secretary Alice Wahome told Parliament that 23 investors had shown interest in building water dams through the public-private partnership (PPP) model.
She told the National Assembly’s Committee on Blue Economy, Water and Irrigation that the passage of the Water (Amendment) Bill 2023 would unlock private financing to develop 100 dams that President William Ruto’s administration is targeting in the next five years.
“We have a very huge financing gap. That is why we are amending the Water Act to open the water sector to private-sector investment. We are targeting to attract Sh500 billion from the private sector,” said Ms Wahome.
“We have drafted the law with the Treasury and the Attorney General that will bring private sector funding in the water sector.”
Ms Wahome said the ministry advertised an expression of interest for 33 dams in June and has since received 23 private investors.
She said each dam had attracted about four investors while others got eight private investors.
“The response has been very good and once we complete the process of evaluation, we are going to ask the winning bidders to undertake the projects,” said Ms Wahome.
The Water (Amendment) Bill 2023 seeks to change the Water Act of 2016 to effect the public-private sector in the water sector.
The water law presently does not allow public-private partnerships in the development of dams and water pans.
