Kenya Uganda financing SGR deal

simplemind · 2017-01-22T08:15:25+00:00

Kenya and Uganda officials to sign joint SGR financing pact in Beijing SHARE BOOKMARKPRINTRATING The Ngong tunnel on the Nairobi to Naivasha standard gauge railway. FILE PHOTO | SALATON NJAU | The Ngong tunnel on the Nairobi to Naivasha standard gauge railway. FILE PHOTO | SALATON NJAU | NATION MEDIA GROUP By GERALD ANDAE Posted Wednesday, December 7 2016 at 07:34 IN SUMMARY Top officials from the two countries have already scheduled a trip to Beijing early next year. Kenya is seeking funds for the Naivasha to Malaba section of the SGR while Uganda plans to build the link to Kampala under a bilateral agreement signed between the two countries. Kenya and Uganda are set to sign a joint financing deal for building the second phase of the standard gauge railway (SGR). SHARE THIS STORY 0 inShare Top officials from the two countries have already scheduled a trip to Beijing early next year. Kenya is seeking funds for the Naivasha to Malaba section of the SGR while Uganda plans to build the link to Kampala under a bilateral agreement signed between the two countries. Exim Bank of China, which is the financier of the project for both countries, had committed to extending credit to Uganda on condition that Kenya is ready to extend its section of the railway to Malaba. Uganda had written to Kenya in November requesting an assurance that it will extend the rail to the border town in a bid to secure financing from the China based lender. Kenya Railways managing director Atenas Maina confirmed that the two nations signed a joint commitment for funding, which will pave the way for Uganda to access funds. “We signed bilateral commitment with Uganda in seeking funds for the extension of the northern corridor and we shall be visiting China in the first quarter of 2017 to ink a financial deal,” said Mr Maina in an interview with the Business Daily. Uganda is yet to start building its section of the SGR while Kenya’s first phase, which runs from Mombasa to Nairobi, is 98 per cent complete and is expected to be operational by June. The bank had committed to finance the Nairobi to Naivasha section of the railway at a cost of Sh150 billion. There were fears that Kenya would terminate its railway at Kisumu after Rwanda indicated that it was pulling out of the initiative. The Transport ministry had indicated that it would not extend the railway to Malaba if Rwanda pulled out of the project. However, Rwanda later clarified that it was still interested in the venture. Building of the railway on the Kenyan side has faced a number of challenges including delays after animal rights activists claimed that it would interfere with wildlife in Nairobi National Park. Critical hub Last year Kenya Railways Corporation signed an agreement with the Kenya Wildlife Service and the National Land Commission allowing the railway to pass through the park. This was to avoid a huge compensation bill arising from demolition of industries and residences in Mlolongo and Athi River, along the original railway’s path, on the outskirts of Nairobi. The Chinese loan for construction of the railway from Mombasa to Malaba will hit the Sh1 trillion mark. Exim Bank will pump in Sh490 billion for the Kisumu to Malaba section. 1 | 2 Next Page »

Thread starter simplemind
Start date Jan 22, 2017

simplemind

JF-Expert Member

Jan 22, 2017

MK254

JamiiForums uses cookies to help personalise content, tailor your experience and to keep you logged in if you register.
By continuing to use this site, you are consenting to our use of cookies.

Accept Learn more…

Back

Top Bottom

Forums

New posts

Kenya Uganda financing SGR deal

simplemind

JF-Expert Member

MK254

JF-Expert Member

Our Community

Regional Communities