Kenya Ports Authority (KPA) may participate in the public private partnership (PPP) scheme to operate and maintain a second container terminal in Mombasa port, Kenya.

According to sources, the National Treasury wants KPA to introduce a new rule in the concession documents that would give the government a 15 % free to carry interest in the project company, which would count as local participation.

The project is currently in the shortlist stage, several local and international teams have already been shortlisted. The shortlisted companies include APM Terminals, DP World, China Merchant Holdings, and Cosco Pacific as well as several consortia. Joint venture bids include Toyota Tsusho Corporation with Grup TCB and Mitsubishi Corporation with Freight Forwarders Kenya.

The proposed project seeks to apply a PPP arrangement for the operation and maintenance (O&M) of the second container terminal whose objective is to provide new handling facilities at the Port of Mombasa, with a larger goal of facilitating trade and economic development in Kenya and neighbouring countries in East Africa.

The 25-year concession contract is valued at Sh28 billion (US$281.1 million). The preferred bidder will pay KPA an annual fee of US$18.4 million plus a percentage of the profit handed.

Construction of Phase 1 of the new container terminal is currently in construction with an estimated end date of Feb 2016.