A perspective in infrastructure (received on whazup, author unknown)

kingolonde said:
This is not an issue
Issue is how the project costs have been inflated, some almost twice.
Hio ndio shida.
Click to expand...
Infrastructure projects including roads, houses etc end up being expensive because of the funding aspect. For instance an apartment may be advertised for 12m but when you take a mortgage (which is basically a long term bank loan) you end up paying 36m for the same house. So can you claim that the bank inflated the cost of the house thrice?

It is the same with roads where the engineer would design and cost the road at the prevailing/current rates eg 50m per km. But when you borrow the cash (repayable in 30yrs) to build the road from eg Exim bank or AFDB you end up paying double or triple.

So the costs of projects are not inflated. Yes, your friends may be shocked that you will pay 36m for a 12m apartment but that is what it is, it is how loans work. Thus wananchi should not be shocked to learn that they will pay double or triple for roads, dams, ports and other infrastructure projects.

Also wananchi should not be shocked that some people get commissions from these projects and loans. Hata ukinunua hio 12m apartment the salesman is normally paid a commission, the bank also charges a processing/facility fee on the the mortgage/loan. That is how projects and banks work.
 
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kingolonde said:
This is not an issue
Issue is how the project costs have been inflated, some almost twice.
Hio ndio shida.
Click to expand...
Wacha nisaidie Mkurugenzi kuuliza swali.
According to you, what would be a fair cost of building the expressway?
And while at it, let us know your qualifications.
 
Aviator said:
Wacha nisaidie Mkurugenzi kuuliza swali.
According to you, what would be a fair cost of building the expressway?
And while at it, let us know your qualifications.
Click to expand...
Wacha ni kujibu
Jamaa ni mtu wa mkono kirinyaga construction company, machungu akonayo ,tender ilipewa Chinese !
 
kingolonde said:
This is not an issue
Issue is how the project costs have been inflated, some almost twice.
Hio ndio shida.
Click to expand...

There is also the recklessness with which this infrastructure-first policy has been pursued, it is almost as if infrastructure is some magic bullet.

Even at the correct cost range there ought to have been a more balanced approach to government spending, now we have roads to mashinani but with production costs so high we cannot reap the infrastructure dividend.

It is no wonder this adminstration cannot fund universities as needed, it cannot fund subsidies, there was no money to fund social support programs during the COVID pandemic, that is the true cost of this infrastructure-binge, new projects have had to be shelved, their promise notwithstanding, balance muhimu.
 
Aviator said:
Wacha nisaidie Mkurugenzi kuuliza swali.
According to you, what would be a fair cost of building the expressway?
And while at it, let us know your qualifications.
Click to expand...
A fair cost would exclude a 10% bribe with clear statements on the ownership of those benefitting local companies
 
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