BY SAM ALFAN.
Plans for Kenya Kwanza government to refurbish and expand the Jomo Kenyatta International Airport in a private arrangement with Indian firm Adani Airport Holdings Limited has been challenged in court.
Isack Lango Guyo filed the petition at the Milimani High court seeking to nullify all proceedings and agreements related to the project between Kenya Airports Authority (KAA) and Adani Airport Holdings.
Guyo contends that the proposed deal could potentially confer significant control over airport operations to the Adani Group.
He said the arrangement would give the Indian firm the authority to determine user fees, which could have consequential impacts on airlines and passengers.
He says that there was no public participation before the deal was arrived and there was no transparency in the process thereby infringing the constitution.
“This court declares the entire transaction including the privately initiated proposed by Adani Project Holdings and all the attendant processes related thereto as unconstitutional, null and void ,” reads court documents.
Guyo argues that the project at JKIA is marked by severe breaches of the constitution adding that the exclusion of the public from the transaction and the lack of transparency and accountability is a serious violation of the constitution.
“Furthermore, the Proposal raises numerous concerns at the transactional level, including the potential transfer of title to the proponent, the aggressive required Internal Rate of Return (IRR) of 18%, the project hand-back mechanisms, the financing structure, and implications”, Guyo states in papers.
He adds, the Proposal, which has apparently been approved holistically, appears to be heavily skewed in favor of the proponent.
The concerns, he said, were highlighted by the Transaction Advisor, ALG Global Infrastructure Advisors, who has cost the taxpayer a sum of Sh160 million.
Additionally, it is understood that the Public private partnership unit raised no less than 26 issues, which seem to have been conveniently ignored.
Guyo claims the process is suspicious due to the fast-tracked nature of the transaction.
