, BEIJING, China, Sep 6 – The second annuity programme sponsored by the Government of Kenya for infrastructure development has been awarded and a funding arrangement completed.
The $150 million project has been awarded to Hass Consortium-GVR Infra Limited, Shandong Hi-Speed Nile Investment Company and Stanbic Bank of Kenya who signed an indicative term sheet for the financing on the side lines of the Beijing 2018 Forum for China-Africa Cooperation (FOCAC).
Welcoming the tripartite-agreement, Transport Cabinet Secretary James Macharia said the project would go along away in realising the government goal of tarmacking 10,000 kilometres of road under the annuity programme.
“When we began this programme stakeholders were slow in picking it up but I am glad it now on top gear and stakeholders have realised the returns from the investment is good,” said CS Macharia.
The project will see the 143 kilometres of tarmac laid between Modogashe-Habaswein-Samatar and Rhamu-Mandera roads.
While Stanbic and China Exim Bank will fund the project to the tune of $81 million, the rest will be taken care of as equity.
Hass Consortium-GVR Infra Limited was awarded a tender under Phase 1 of the 10,000kms of the annuity programme, and has already mobilised and will begin construction on October 1, 2018 which will be completed within 30 months.
The roads will be constructed and maintained by Shandong Hi-Speed Nile Investment Company under a design-Build-Finance-Maintain and transfer contract structure under a 10-year public private partnership model.
The brief ceremony was witnessed by among others Cabinet Secretaries Henry Rotich of National Treasury and Planning, and Principal Secretaries Kamau Thugge (Treasury) Esther Koimett (Transport) and Julius Korir (Infrastructure).