Dr Reuben Mutiso, a director of the newly inaugurated Konza Technopolis Development Authority (KOTDA), today informed investors that between KSh680 billion and KSh700 billion (approximately US$8 billion) is required to complete Konza Tech City’s first phase.
The statement comes a week ahead of the groundbreaking ceremony to be officiated by President Mwai Kibaki. According to Mutiso, a renowned architect known for his role in designing Kenya’s iconic Kenyatta International Conference Centre (KICC), the money will go into the construction and post-construction phase.
In construction alone, Mutiso estimates that KSh520 billion (approximately US$6.12 billion) will be needed for materials and labour, with materials taking more than 60 percent of the funds, around US$3.88 billion. 60 percent will be imported.
In labour, where workers will be directly involved with the construction, Mutiso estimates that KSh220 billion (approximately US$2.59 billion) will be needed.
Consultants supervising the construction of the city are expected to consume KSh160 billion (approximately US$1.88 billion) for the construction and post-construction phase, according to the estimates.
“There will be professional fees to consultants. These people must transform these simple ideas to actual projects. The professional fees will translate to 160 billion shillings, a lot of money,” he said.
This comes as development of the project blueprint hits the fourth phase.
According to the Ministry of Information and Communication permanent secretary Dr Bitange Ndemo, 18 companies have so far committed to start development ahead of the general election in March, as other investors watch from the periphery for the outcome of the polls.
“For some time Konza was just a dream but from Wednesday next week Konza will be a reality,” said Ndemo. He promised to name the 18 companies after the groundbreaking next week.
HumanIPO has, however, learnt that the companies that have committed include global giant IBM and integrated telecommunications provider Safaricom.
Qatar construction and building company Crudeco Group has also committed itself to the project, according to general manager Eng. Mohammed Mustafa.
Saudi Arabian firm Watan Al Salam is also said to be interested and was among investors that attended a briefing today, bringing together investors and the media.