Indian development firm, Hass Consortium-GVR Infra Limited, China’s Shandong Hi-Speed Nile Investment Company and Stanbic Bank Kenya have secured a contract for a $150 million road project in Kenya.
The organizations this week 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, Mr James Macharia, Cabinet Secretary (CS) for Kenya’s Ministry of Transport, Infrastructure, Housing and Urban Development said the project would go a long way in realizing the government’s goal of tarmacking 10,000 kilometres of the road under an 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 Kenya’s 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 Phase1 of the 10,000kms of annuity programme. The company will begin construction on October 1st, 2018 which will be completed within 30 months.
The Road 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 signing ceremony, held in Beijing, was witnessed by Cabinet Secretaries Henry Rotich of Kenya’s National Treasury and Planning, and Kenya’s Principal Secretary (PS), Kamau Thugge of the nation’s Treasury, Esther Koimett, PS for Transport and Julius Korir, PS for Infrastructure, among others.