Adani deal better than World Bank loans, Raila says

ODM leader Raila Odinga. [File, Standard]

ODM leader Raila Odinga has defended the government’s Public-Private Partnership (PPP) arrangement with Indian firm Adani Holdings Limited, aimed at upgrading Jomo Kenyatta International Airport (JKIA). 

During a press conference on Sunday in Mombasa, Odinga argued that such partnerships were better than seeking assistance from the World Bank or International Monetary Fund (IMF), given the existing debt burden that Kenyans are facing.

“We all have misgivings about how the current proposed PPP involving JKIA and power distribution has been processed, leading to a heated debate over the involvement of the Indian firm in the airport and energy sector projects. Unfortunately, these concerns have also led to widespread misinformation about the investors who have made the PPP proposals,” said Raila.

He noted that the concept of PPP was inspired by a visit to India, where he was impressed by the extensive development carried out by Adani.

Odinga was in the presence of Governors Anyang Nyong’o (Kisumu), Abdulswamad Nassir (Mombasa), Gideon Mung’aro (Kilifi ), Simba Arati (Kisii), and Gladys Wanga (Homa Bay).

“When I was the Prime Minister, I was introduced to the company and its activities by Prime Minister Narendra Modi, who was then the Chief Minister of the state of Gujarat,” Raila said.

During his time in Gujarat, he visited several infrastructure projects developed by the company, including a port, power plant, railway line, and an airstrip built on a swamp donated by the government. He also toured Mumbai, where Adani’s electricity projects serve over 13 million consumers.

Raila defended the company, stressing that it owns more energy infrastructure than is present in Kenya, Uganda, and Tanzania combined.

“Adani Energy Solutions has a cumulative transmission network of 21,783 circuit kilometers of power transmission lines and a 61,686 MVA transmission capacity,” said Raila. He also noted that this was not Adani’s first interest in Kenya, as the company had initially expressed interest in 2010 following a government delegation’s visit.

Raila argued that PPPs are the most viable, tested, and reliable method for developing the country’s infrastructure.

“Under the circumstances, the most viable, tested, and reliable way to sustainably address the country’s infrastructure needs is through Public-Private Partnerships (PPPs),” he stated.

He highlighted Adani’s reputable global track record and regretted that some individuals were spreading misinformation about the Indian firm. However, he stressed that for PPPs to serve Kenyans’ interests, the government must adopt appropriate models tailored to the needs of specific projects.

“Ensure our models distribute the PPP burden fairly between the people of Kenya and investors. Kenyans cannot be made to bear all the risks in PPP projects. Kenyans can guarantee break-even returns, but not commercial profits,” he said.

Raila added that many countries facing similar economic challenges have taken the PPP route and dismissed calls for public participation in every development project. He argued that, unlike in Kenya, public participation is not a standard practice in most developed countries.

“The public participation in this country is being taken out of context because in other developed countries, there is nothing like that,” Raila asserted.

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