Treasury has signed a $500 million (Sh50 billion) credit agreement with the World Bank for the construction and rehabilitation of a road linking Kenya with South Sudan.
The credit line signed Monday brings Kenya’s total development portfolio with the Bretton Woods institution to Sh528 billion ($5.28 billion).
“The above road stretches the Eastern Africa Regional Transport, Trade and Development facilitation project, which is part of the 601km road between Lesseru in Eldoret and Nakodok at the Kenya-South Sudan border that will be rehabilitated at a cost of Sh107 billion,” said National Treasury Cabinet Secretary Henry Rotich.
He made the remarks Monday during the signing ceremony of the financing for the Kenya-Eastern Africa Regional Transport, Trade and Development facilitation project with World Bank Country Director Diarie’tou Gaye.
The project is expected to be implemented over the next six years to 2021. It will entail five years of road upgrading and other physical infrastructure works.
The last one year will be for project winding up. “This new project, which was approved by the World Bank board of executive directors on June 11, 2015, will facilitate development, transport and trade between Kenya and its neighbours,” said Gaye.
“It will also enhance internet connectivity and road safety between the East African countries and the rest of the world.”
The road project is part of the Horn of Africa initiative, an ambitious effort by the World Bank, the United Nations, Islamic Development Bank, African development Bank, African Union Commission and the European Union to promote more collaborative political, diplomatic and development solutions to the issues of fragility, vulnerability and insecurity.
Transport costs
“Apart from facilitating connectivity between Kenya and South Sudan, the project will facilitate cross-border trade and reduce transport costs. It will also aid transportation of emergency relief supplies and humanitarian efforts in the region,” said Transport Principal Secretary Eng John Mosonik.
This credit, the highest so far for a single project in Kenya by the Bretton Woods institution, will finance part of the Eastern Africa regional transport, trade and development facilitation project which involves reconstruction of part of the Kenyan section of the 1000km road from Eldoret to Juba.
The transport and trade corridor will pass through the north western parts of Trans Nzoia, West Pokot and Turkana Counties. The entire road project linking Kenya to South Sudan will cost Sh86 billion ($956 million).
Discussions are underway with a number of development partners to raise the balance to finance rehabilitation of the remaining vital road link.
The Government will develop the 40km stretch that lies between Loichangamatak and Lokichar in Turkana County at a cost of Sh17.6 billion while the World Bank will finance rehabilitation of 298 km stretch between Nakodok to Loichangamatak.
