The-Accountant-Jul-Aug-2016

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FINANCE AND INVESTMENT By CPA Simon Peter Ole Nkeri DEVELOPING SPECIAL ECONOMIC ZONES THROUGH PPPs Continued from May - June issue... A PPP Contract: Important Contractual Clauses A PPP Contract: Important Contractual Clauses Contracting issue Contractual period Mutual obligations Violations Description of Design Finance Construction Operation Maintenance Services and Facilities Ownership Transfer Terms of contract Effective date Construction Period Operation period Early Termination Settlement of Disputes Reasons for Early Independent committee of experts Arbitration Amicable Dispute Resolution Ministry of Finance PPP Unit Available services and Facilities Availability Payment Will termination of the Government Breach by the Government Breach by the SPV Force Majeure Change in services Chang in laws and regulations Where a Special Economic Zone is to be developed through a public private partnership, the provisions of the PPP Act that are deemed to be of immediate concern and that require to be understood are those that relate to the following matters:- • Assessment of Contracting Authority’s technical expertise to procure services; • Privately Initiated Investment Proposals • Undertaking of a Feasibility Study; • The Negotiations process between the contracting authority and the private party; • The establishment of a Project Company or a Special Purpose Vehicle (SPV); and • Execution of a Contract. Impact of Incentives on Industrial Development through SEZs 1) Increase contribution of manufacturing sector to GDP from the current 11% to 1 20 JULY - AUGUST 2016
FINANCE AND INVESTMENT 20% by 2030. 2) To attract both local and foreign investments. 3) To expand and diversify production of goods and services for domestic and export markets. 4) To promote value addition 5) To promote local entrepreneurship through Small and Medium Enterprises (SMEs). 6) To enhance technology development and innovation. 7) To promote rural and regional industrialization by exploiting comparative advantage of local resources. SEZ’s Potential Contribution to GDP 1) Employment – increased job opportunities, and an informed labour force. 2) Industrial hub – an avenue for ‘bringing’ Dubai into Kenya 3) Prospects to double the manufacturing sector’s contribution to GDP from the current 10%. 4) Comparative advantage in terms of accessibility to raw materials, labour and geographical locations of Kenya’s ports are critical to stopping importation of second hand clothes and boosting the local textile industry. 5) Main consumer of the planned 5,000 Megawatts of power to be generated through geothermal and coal, among other new sources of power. 6) The land use for SEZ is open to any feasible industries. 7) SEZs are a catalyst for infrastructural (roads, railways, ports, etc.) and regional or county development as well as promulgating the Kenya’s enhancement Export of PPPs Processing and Zone capital markets. (EPZ) 8) Facilitation of an enabling environment conducive for business through the amendment of restrictive legislative parameters such as the customs, KEBS, KRA and EPZ frameworks. 9) Ease of doing business and reducing the high cost of business ventures in terms of taxes, wages, compliance costs, idle capacity in plants, land costs and high costs of borrowing. 10) An enabler for achieving and fast tracking Vision 2030’s development blue print. JULY - AUGUST 2016 21
Page 1 and 2: JOURNAL OF THE INSTITUTE OF CERTIFI
Page 3 and 4: TABLE OF CONTENTS 36 WORK PLACE Iss
Page 5 and 6: EDITORIAL It has been observed that
Page 7 and 8: MANAGEMENT shareholders vs. manager
Page 9 and 10: MANAGEMENT people by his side. He b
Page 11 and 12: BUSINESS PRACTICE AND DEVELOPMENT U
Page 13 and 14: FINANCE AND INVESTMENT CPA Derrick
Page 15 and 16: JULY - AUGUST 2016 13
Page 17 and 18: Kenya Power invests Shs700 million
Page 21: FINANCE AND INVESTMENT Of recent, t
Page 25 and 26: FINANCE AND INVESTMENT The PPP Act
Page 27 and 28: GOVERNANCE department as they are t
Page 29 and 30: GOVERNANCE Underpinning the proper
Page 31 and 32: COVER STORY 2015-16 16-17 2016-17 2
Page 33 and 34: COVER STORY 2015-16 2016-17 2016 as
Page 35 and 36: COVER STORY Interest on Government
Page 39 and 40: WORK PLACE than reality. Don’t de
Page 41 and 42: INSPIRATION be around, and you can
Page 43 and 44: HEALTH Headaches, for example Migra
Page 45 and 46: Media Consultancy & Publishing •
Page 47 and 48: SOCIETY and the rubbish collector a
Page 49 and 50: ICPAK thanks all its 2016 Annual Se
Page 51 and 52: TID BITS Why I would raise chickens
Page 54 and 55: INSTITUTE NEWS By CPA Patrick Kabuy
Page 56 and 57: INSTITUTE NEWS By Staff Writer THE
Page 58 and 59: INSTITUTE NEWS By CPA Edwin Makori
Page 60 and 61: PERSONALITY PROFILE Rose Bosibori O
Page 62 and 63: PERSONALITY PROFILE What has been t
Page 64 and 65: TRAVEL The Imperial City That Ameri
Page 66 and 67: TRAVEL Smithsonian Museum is regard
Page 68: ACCOUNTABLE RECIPES By Sharon Gaton
Page 71 and 72: ICPAK Hall of Fame CPA Philip Kinis
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PEN OFF fee-paying courses in publi
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COMPLEX TO LET Structure • Eleven
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The-Accountant-Jul-Aug-2016

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