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Thursday, December 26, 2024

Adani Confirms Payment for Kes.242 Billion JKIA Upgrade Proposal

Adani Airport Holdings Limited confirmed it paid $50,000 (around Kes.6.47 million) to the Kenyan government as a review fee for its Kes.242 billion ($1.85 billion) proposal to take over and upgrade Jomo Kenyatta International Airport (JKIA) in Nairobi.

The Indian infrastructure company, in a replying affidavit filed on Tuesday, September 17, addressed a case brought by the Kenya Human Rights Commission (KHRC) and the Law Society of Kenya (LSK) on September 9, which seeks to block the deal.

Adani states it deposited the review fee into the Public Private Partnerships (PPP) Facilitation Fund and submitted the required documents for its privately initiated proposal (PIP).

According to the company’s lawyers, “Upon submission of the PIP, Adani Airport Holdings Limited duly paid the review fee of USD 50,000 to the Public Private Partnership Facilitation Fund, as required by law.”

They also confirmed that all necessary pre-approval documents, including incorporation, tax compliance, and financial records, were provided to facilitate due diligence by the PPP Directorate in coordination with the Kenya Airports Authority (KAA).

Adani states that on March 18, the Kenya Airports Authority acknowledged receipt of the proposal and confirmed that the project was approved to proceed to the development phase, specifically the feasibility study phase. The company claims it later submitted a feasibility study report, which detailed the environmental and social impacts, financial plans, and outlined how the project would offer value for money to the Kenyan public.

Additionally, Adani provided a preliminary operating plan for the project. Court documents show the plan aligns with national infrastructure goals and aims to address long-standing infrastructure issues at JKIA.

The company insists that the project is still in the review and due diligence stages, refuting claims made by KHRC and LSK that JKIA had already been leased to Adani for 30 years. Adani calls such claims a misrepresentation of facts.

In Tuesday’s filings, Adani revealed it first became aware of JKIA’s deteriorating condition through Kenyan media, prompting it to submit a proposal to the KAA on March 1, 2024, to invest in the airport’s improvement.

On September 9, the court halted any further action on the proposed lease until the case is fully resolved. The case will be mentioned again on October 8.

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