Kenya, Korea in Sh800m deal

March 31, 2009
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, NAIROBI, Kenya, Mar 31- The government has signed a Sh837.9 million loan agreement with the Republic of Korea Korea for the construction of phase II of the Technology Development Centre Extension Project in Athi River.

Deputy Prime Minister and Minister for Finance Uhuru Kenyatta said the funds would be used to construct new buildings in the already existing facility.

Mr Kenyatta said phase I of the project was completed in 1994 at a cost of Sh792 million. “The centre now plays a vital role as an avenue of technology transfer and a source of development of the country’s human resource,” Mr Kenyatta said.

He said the funds would be used to supply training equipment and facilitate college transportation vehicles to provide staff training.

“The project will therefore support economic development of the country effectively by strengthening human resource development at the industrial and informal sector levels through training,” the Finance Minister added.

Mr Kenyatta observed that this would be the third concessional loan from the Korean government after the successful completion of the Sh1.85 billion Road Maintenance Equipment Renewal Project in 2005.

He said under the above loan, the Ministry was supplied with road construction equipment which had greatly assisted in the construction and maintenance of the country’s road network.

Speaking at the signing ceremony, Korean Ambasador Lee Han expressed optimism that the loan would go a long way in helping the country achieve the Vision 2030 goals.

“This project will be a definite contribution to the economic development of the country,” Mr Lee reiterated.

So far the cumulative Korean Oversees Development Assistance loans extended to the government stand at Sh3.754 billion.

The loan facility was provided at a one percent interest rate, and a 30-year repayment period inclusive of a 10-year grace period.

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