ODM leader Raila Odinga has defended the government deal with Adani Holdings Limited, saying the Public Private Partnership (PPP) model is the best way of executing state projects, as opposed to funding through the World Bank or the International Monetary Fund.
Odinga noted that at a time when the country was reeling under a heavy debt burden, the idea of upgrading the Jomo Kenyatta International Airport (JKIA) could not be done in a better way other than the PPP.
This is a shocking twist to many of Odinga’s supporters in view of the heat the Adani deal has generated in the country and many have suggested that the Azimio leader is playing to President William Ruto’s tune to sustain state support for his bid to become the next chairperson of the African Union Commission.
Raila also defended the Kenya Electricity Transmission Company (Ketraco) deal with the Indian firm, which is currently in the courts.
“We all have misgivings about how the current proposed PPP concerning JKIA and power distribution have been processed which has resulted in the raging debate over the involvement of the Indian firm in the airport and energy sector projects,” said Raila.
“Unfortunately, these misgivings have also resulted in a lot of misinformation regarding the investors who have made the PPP proposals.”
The Commission for Human Rights and Justice, through its director – Julius Ogogoh, has filed a lawsuit claiming the agreement between Ketraco and Adani was conducted secretly, without proper public participation.
In his application, Ogogoh claims that officials from the National Treasury quietly visited Ahmedabad, India, in January to discuss the deal with Adani without any input from the public.
Raila revealed that when he was Prime Minister, during the grand coalition government with Mwai Kibaki, he was invited to India and liked the massive development which Adani had done.
“When I was the Prime Minister, I was introduced to the company and its activities by Prime Minister Narendra Modi while he was the Chief Minister of the state of Gujarati,” Raila said.
While in Gujarat, Raila explained, he visited several company’s infrastructure that included the port, power plant, a railway line and an airstrip developed out of a swamp donated by the government. He also toured Mumbai where he saw Adani’s electricity projects set up to serve more than 13 million people.
A changed Odinga now says Adani should be given the chance saying they own more energy infrastructure than Kenya, Uganda and Tanzania combined
“Adani Energy Solutions has a cumulative transmission network of 21,783 circuit kilometers of power transmission lines and 61,686 MVA transmission capacity.
“After the government delegation came back, the company expressed interest in investing in Kenya, the first expression of interest was far back as 2010.
“Under the circumstances, the most viable,tested and reliable means through which we can sustainable address the country’s infrastructure needs is through Public Private Partnership PPP.”
Odinga said the government should reconsider its position and take the views of Kenyans if the present arrangement continues to face resistance.
“Ensure our models provide for the distribution of the PPP burden fairly between the people of Kenya and investors. Kenyans cannot be made to bear all risks in PPP projects. Kenyans can guarantee break – even returns, but never commercial profit.”
