Kenya, Uganda rail bids opened
Oct 15, 2004
Bids for the first cross-border privatisation for the joint concession of Kenya and Uganda railways corporations were opened yesterday.
By Mikaili Sseppuya
Bids for the first cross-border privatisation for the joint concession of Kenya and Uganda railways corporations were opened yesterday.
Nine companies made the prequalification bids at Communications House, Kampala.
They include NLPI (Mauritius), Magadi Soda (Kenya), Maersk Sealand (Kenya), Optima Management Services Ltd (UK), Sheltam Railway Services (South Africa), China Railways First Group (China), CANAC (Canada), Rites Ltd (India) and Hold Trad GMBH a consortium with Germany, Kenya and US interests.
The prequalification bids will be evaluated and those which qualify for bidding will be announced on November 15.
Final bids will be submitted by April 15 and the winners announced by mid-June.
Michael Opagi, the director of the Privatisation Unit read out the bidders.
Prof. Peter Kasenene, Uganda’s finance state minister for privatisation, led the Uganda delegation, while the Kenyan team was led by the transport ministry’s permanent secretary, Gerrishon Ikiara and ambassador Magadalene Wambui.
The process involves getting one concessionaire for the joint operations of 1,920kms of Kenya Railways Corporation and 270kms of Uganda Railways Corporation.
Concession advantages include a defined term of 25 years, no sale of assets as the two governments will retain ownership of the infrastructure and conceded assets.
The governments will also retain control of the process through the contract which grants rights to the concessionaire.
Other advantages include reduced transport costs for imports and exports.
The local private sector will be guaranteed 20% shares in the concession.
The qualification bids were called shortly after a stakeholders’ meeting in Munyonyo, Kampala in August.
Negotiations took place at the conference.
Ends
Bids for the first cross-border privatisation for the joint concession of Kenya and Uganda railways corporations were opened yesterday.
Nine companies made the prequalification bids at Communications House, Kampala.
They include NLPI (Mauritius), Magadi Soda (Kenya), Maersk Sealand (Kenya), Optima Management Services Ltd (UK), Sheltam Railway Services (South Africa), China Railways First Group (China), CANAC (Canada), Rites Ltd (India) and Hold Trad GMBH a consortium with Germany, Kenya and US interests.
The prequalification bids will be evaluated and those which qualify for bidding will be announced on November 15.
Final bids will be submitted by April 15 and the winners announced by mid-June.
Michael Opagi, the director of the Privatisation Unit read out the bidders.
Prof. Peter Kasenene, Uganda’s finance state minister for privatisation, led the Uganda delegation, while the Kenyan team was led by the transport ministry’s permanent secretary, Gerrishon Ikiara and ambassador Magadalene Wambui.
The process involves getting one concessionaire for the joint operations of 1,920kms of Kenya Railways Corporation and 270kms of Uganda Railways Corporation.
Concession advantages include a defined term of 25 years, no sale of assets as the two governments will retain ownership of the infrastructure and conceded assets.
The governments will also retain control of the process through the contract which grants rights to the concessionaire.
Other advantages include reduced transport costs for imports and exports.
The local private sector will be guaranteed 20% shares in the concession.
The qualification bids were called shortly after a stakeholders’ meeting in Munyonyo, Kampala in August.
Negotiations took place at the conference.
Ends