Finance minister Robinson Githae (right) with World Bank country director Johannes Zutt (left) during the signing of the National Urban Transport Improvement Project at Treasury on September 26, 2012. Looking on is Treasury's External Resources department director Jackson Kinyanjui (centre). Photo/DIANA NGILA
What you need to know:
In co-sponsoring the project, the Treasury is to put in Sh5.1 billion ($60 million) or 20 per cent of the World Bank’s loan.
The construction is supposed to start as soon as the World Bank disburses the funds since the project is behind schedule by five years.
NUTRIP is supposed to decongest traffic on the Northern Corridor passing through Nairobi. It will also facilitate regional and international trade and improve road access to JKIA.
Reconstruction of the 50-kilometre JKIA-Rironi highway to include an overpass on Uhuru Highway inched closer to commencement Wednesday when the Treasury signed a Sh25.5 billion ($300 million) loan with the World Bank.
In co-sponsoring the project, the Treasury is to put in Sh5.1 billion ($60 million) or 20 per cent of the World Bank’s loan.
The Treasury’s contribution had been a major point of debate before an agreement was reached on the exact amount, Finance minister Njeru Githae said after signing the loan documents.
Donors normally require that governments provide their contributions — called counterpart funds — into such projects.
The Bretton Woods institution gave the loan at an annual interest rate of 0.75 per cent, a repayment period of 30 years and a 10-year grace period.
The construction is supposed to start as soon as the World Bank disburses the funds since the project is behind schedule by five years.
The loan will fund part of the National Urban Transport Improvement Project (NUTRIP) expected to also cover two other urban areas including Kisumu and Meru.
Mr Githae said that about 30 per cent of Kenyans were living in urban areas last year.
By 2030, the Kenyan population will have reached 61 million and about half of that will be living in urban areas, he said.
“To ensure quality service to urban dwellers the government intends to make more investments to address the challenges that come with rapid urbanisation,” said Mr Githae.
NUTRIP is supposed to decongest traffic on the Northern Corridor passing through Nairobi. It will also facilitate regional and international trade and improve road access to JKIA.
Mr Githae said that feasibility studies had been concluded on transport corridors.
The funds will also help in institutional and capacity building for the transport sector, which will involve harmonising operations of the various road and rail authorities.
Road minister Franklin Bett said he hoped to see the commissioning of the construction before the General Election.
“Uhuru Highway is like a parking lot. You can take two hours. It is unpredictable in terms of the time one spends there,” said Mr Bett.
