The government of Kenya through the State Department for Aviation and Aerospace Development has invited bids for the design and building of the Jomo Kenyatta International Airport (JKIA).
The JKIA design and building contract bidding invitation is targeting established mainstream contractors who can prove that they have access to cash or a credit line of at least Sh100 billion to guarantee the completion of the renovation and expansion project at the airport.
“The tenderer shall demonstrate experience in delivery of at least one construction project including testing and commissioning, in East Africa, with a value of at least Sh100 billion,” the State Department for Aviation and Aerospace Development stated in the tendering document.
In addition to this requirement, the department has also made it mandatory that prospective bidders must have access to at least Sh100 billion in liquid assets or a line of credit, and have an annual turnover of at least Sh95 billion.
Among the works that the successful contractor will be required to undertake is to expand the current JKIA capacity from 7.5 million passengers per year to 12 million passengers.
The contractor will also design and construct a new terminal that shall have a capacity of handling 22 million passengers per year. The contractor will also build a new runway that will measure 4.5 kilometres and have a width of 60 metres. This runway will be designed to handle large widebody planes as well as jumbo planes such as the Airbus A380.
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These works will be required to be completed within a period of three years. According to Kenya Airports Authority’s acting chief executive officer Mahamud Gedi, the construction works shall be funded by the government.
One of the ways through which the government shall fund the project will include the securitization of the Air Passengers Service levy which is currently Sh18.5 billion. This levy will be used to support a Sh154.8 billion bond for the project.
“The government of Kenya is going to fund this project through a government finding model, not through PPP as was previously decide,” Gedi said.
According to statement by the Cabinet Secretary for Roads and Transport Davis Chirchir, the JKIA has a capacity of about 8.93 million passenger and is expected to hit a capacity of 22.31 million passengers by the year 2045.At the same time, air cargo at JKIA is expected to grow from 407,214 tons in 2025 to 860,400 tons in 2045.
