Saturday, June 12, 1999
Project funds too little - AAK
By NJONJO KIHURIA
The Sh7.6 billion proposed for rehabilitation of the country's infrastructure
is insufficient in jump-starting the economy, says the Architectural Association
of Kenya.
In a rejoinder to Finance Minister Francis Masakhalia's Budget
speech, the association says improvement of infrastructure needs a massive
increase in Budget allocation of not less than Sh30 billion.
"To come out of the stagnation we are currently experiencing in
all sectors of the economy, the enabling communications and infrastructure
facilities must first be in place," said AAK Chairman Julius Kibwage and
two members in a statement yesterday.
Noting that no mention on how to deal with stalled projects across
the country was made, the association called on the government to allow
the private sector purchase them (projects) or be part of joint ventures
for their completion.
The association said huge government resources have been tied in these
projects, adding that their completion with the assistance from the private
sector would allow them be utilised and commercially operated.
"This will create jobs, spur growth and demand in the building
industry and, of course, alleviate accommodation shortages to a large extent,"
said the AAK members, who included Mr James Kimathi and Mr David Situma.
They called for the immediate creation of a countrywide building
authority. Private developers should also be allowed to participate in
building roads and other infrastructure and get appropriate tax rebates
in return.
"Private involvement in running of roads and telecommunication
services on well established commercial principles must be seen as the
way forward," they said.
The association said the tourism sector should have been given
major tax rebates to help encourage owners invest in building renovations
and improvement of their premises for effective competition.
The AAK noted with regret that Mr Masakhalia made little mention
of its May national building convention recommendations, "particularly
on the establishment of boards and authorities to effectively deal with
issues of land tenure, security, the legal system and the corruption in
public funded projects".
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