OREANDA-NEWS. June 5, 2012. The first phase of the multi-million dollar Tatu City project on the outskirts of Kenya’s capital Nairobi is now well on course with the signing of a land preparation contract between the project developer and two construction firms.

Tatu City Limited, the company behind the project, one of the largest ever initiated in sub-Saharan Africa, today signed partnership documents with Gibb Africa and SS Mehta. The two firms will be involved in the development of Tatu City Central, the first construction phase, which secured approval by the National Environmental Management Authority in February.

The developer says that Gibb and SS Mehta were awarded the tender after a rigorous tendering process. Gibb have been tasked with the detailed design and supervision of the enabling works contract. They have also been tasked with the detailed design for the main works which includes the roads and services reticulation.

SS Mehta have been contracted to undertake the enabling works contract, which is the bulk earthworks for the road corridors within Tatu City Central. Their brief also includes site clearance within the first phase and the bulk earthworks for the main electrical intake station and sub-station serving Tatu City Central.

The total value of the works covered by the Gibb/SS Mehta contracts is Ksh 262,295,592.24 (excluding VAT) and covers electrical and civil engineering works. The contract period for the enabling works commenced April 17 and is due for completion in October 2012.

According to Tatu City interim CEO Arnold Meyer, the two firms were picked out of 10 potential contractors.

“We put together a list of 10 contractors able to undertake the works. The contractors were then approached and interviewed on availability and willingness to tender. The final list was reduced to six and the tenders were issued in December last year. The competing firms were assessed in terms of finance and technical capability, and the contract was awarded,” explained Meyer.

Speaking when he presided over the signing ceremony, Kenya Vision 2030 Delivery Secretariat Mugo Kibati hailed Tatu City as a model of how Public Private Partnerships can be structured to drive the Vision 2030, Kenya’s two-decade development roadmap.

“Tatu City is an example of a viable PPP that would help Kenya realize its goal of developing 200,000 housing units annually as per the Vision 2030,” stated Kibati.

He added that the government was keen on PPPs that enable and accelerate the Vision 2030 flagship projects. “We cannot sit back and wait for the government to do all the flagship projects; private sector needs to play its role in driving development,” said Kibati.              

Once complete, Tatu will be home to an estimated 70,000 residents and attract 30,000 day visitors. Located off the Thika Superhighway, it is currently the largest foreign direct investment in the country. It will create more than 300,000 jobs. The first phase covers 100ha and will comprise mixed use residential and commercial developments.