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Daily Nation : February 14th 2014
34 | BUSINESS TECHNO PARK | Leaders express concern over long delays in implementing the initiative US firm bags Sh1.2 billion Konza city deal Company to oversee the development expected to change the ICT landscape BY MUTHOKI MUMO email@example.com the development of the planned Konza Technopolis. Following tendering last A year, Tetra Tech was selected to manage construction in the first five-year phase. However, Information and Communication principal secretary Joseph Tiampati, said negotiations over contract and payment terms are still ongoing. “We expect that the contract will be signed in the next few weeks. There are still some negotiations in respect of the mode of payment. We do not want to pay it all at once; we would like to pay in instalments,” Mr Tiampati said. Rerouting resources The figures involved in the contract were revealed separately by Konza Technopolis Development Authority chief executive Catherine Adeya, who said that conclusion of the contract had been delayed. This, she added, was partly due to rerouting of resources to fund devolved governance. Part of the Sh1.2 billion bill would be paid within one to seven years. Mr Tiampati and Dr Adeya spoke on the side-lines of an event during which the National Environment Management Authority (Nema) gave its nod to the technopolis following com- n American company has secured a Sh1.2 billion contract to oversee pletion of an environmental assessment study. The principal secretary said that the University of Nairobi would carry out a survey of the 400 acres in the next five months that will be developed in the first phase. The study will be used by util- ity firms and the government to put in place basic infrastructure such as roads, sewerage and electricity. “After the survey is carried out, Kenya Power and the ministries will lay the infrastructure,” Technopolis chairman John Ngumi said. Flagship projects Konza is one of Kenya’s Vision 2030 flagship projects. The first phase of construction was to begin in 2013 but has stalled. Acquisition of a Nema approval was one of the hurdles that the planned city had to clear to take off the ground. Beyond this, government of- ficials have pointed a finger at lengthy procurement processes as well as failure to pass a Bill, which is supposed to empower the Technopolis to source funds. In the 2013/2014 financial year, Konza was allocated Sh793 million. By all indications, not a single cent of these funds has been spent. Mr Tiampati said his ministry would propose Sh3.7 billion in allocations to Konza in 2014/ 2015. Makueni County leaders at- tending the ceremony yesterday urged the government to accelerate implementation, saying, the project stands to lose major investors if it is delayed much longer. Firms such as Safaricom, Wananchi Online, Huawei Technologies of China and Korean DAILY NATION Friday February 14, 2014 COMESA SAFETY NET Official hints at Kenya getting further protection from cheap sugar imports contrary to WTO rules P.37 Tullow sees Kenya as a better market BY NATION REPORTER Tullow Oil is considering cutting its stake in Uganda to shift focus on the Kenyan fields, according to its top leadership. The London-listed oil explorer with operations in the two countries says the decision is informed by the fact that Kenya has more supportive and favourable operating policies than Uganda. “Kenya will be easier to develop MANAGEMENT What the firm is due to oversee Tetra Tech has a wide scope of performance which will include developing design guidelines for phase one of the project and construction management. The company is also expected to help the government negotiate leases with corporates that have expressed interest in setting up operations in Konza City. giant Samsung have expressed interest in setting up works in the city. “I am not sure if there is the seriousness needed in implementing this project. We keep coming back here to make more promises since the time that the Konza project was initiated,” Makueni governor Kivutha Kibwana said. The politicians also revisited an on-going debate over Konza’s boundaries. Both Makueni and Machakos counties have laid claim to the and the government is very enthusiastic for us to get under way with that development and get first oil as soon as possible. So, as we look at the phasing of our investments, there’s a lot of priority being given to Kenya. If it continues to be very material and grow, then we may look to modify our holdings in Uganda,” Mr Paul McDade, Tullow chief operating officer, was quoted on Wednesday by The Wall Street Journal saying. This comes after the firm made significant strides in oil exploration in Kenya, releasing periodic announcements about its finds. Last month the British firm announced new oil discoveries at Amosing-1 and Ewoi-1 wells in Turkana, further raising the country’s prospects of being an oil producer. The explorer partnered with DIANA NGILA | NATION Konza Techno City Deveopment Authority acting chief executive Catherine Adeya holds a certificate from the National Environment Management Authority at the Konza techno city site yesterday. city in some form or another and according to Mr Tiampati, the national government has decided to let local leaders resolve the matter. The planned Konza City will sit on 5,000 acres about 60 kilometres South East of Nairobi. Upon completion, it is expected to create thousands of jobs in business process outsourcing and cement Kenya’s role as a regional technology hub. 1.2 The amount of money in billions of shillings that the management contract is worth Tullow oil rig in Uganda Chinese company’s 4G network tests planned BY NATION REPORTER Chinese tech firm ZTE yesterday said it hopes to start tests on 4G network in Kenya this year as the country prepares to provide faster browsing speeds for Internet users. ZTE Corporation Kenya chief executive Liu Sen told a breakfast meeting yesterday that the firm would employ its global expertise in 140 countries to get the fourth generation grid going. “We are a world leader in the 4G era as a Tier-1 vendor for LTE and LTE-Advanced networks. Africa will be the next propeller of LTE, and we have already launched three commercial LTE networks in Africa including Namibia, Angola and South Africa. “Our experience in the deployment of LTE networks in other markets will guide our success in the Kenyan and African market at large,” Mr Liu said. He said the company is open to partner- ships as the government evaluates it in the allocation of spectrum. “We are ready to bring more cost-ef- fective ICT solutions to government and enterprises. Kenya has on many occasions grabbed the headlines because of her advancement in Information Communication Technology. “We would like to work together with the government to reach the goal of world class excellence,” Mr Liu said. CNOOC and Total in 2011 for the Uganda activity, namely Lake Albert Rift Basin, which is estimated to contain 1.7 billion barrels of recoverable oil resources. Uganda oil was declared commercially viable in 2006, but delay in finalising discussions on how to start production has frustrated further investment in the project.
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