Chinese firm wins Sh13bn Bomas-Rongai road dualling deal

Sinister · 2019-06-18T12:20:25+00:00

The government has hired a Chinese contractor to convert Bomas-Ongata Rongai-Kona Baridi road into a dual carriageway in a move aimed at reducing perennial traffic congestion on the stretch. Synohydro Construction Limited has been awarded the contract to dual a 22.65km stretch of the busy road through a performance based maintenance contract that gives the company up to 10 years for maintenance and repairs. The dual carriageway, which will cost Sh13 billion, begins at the junction of Lang’ata Road near Bomas of Kenya and runs through Ongata Rongai before terminating at Kona Baridi. Work is due to get underway in November and last around 12 months. “The dualling of Bomas-Kona Baridi stretch…will be undertaken through the annuity road financing program,” Transport and Infrastructure Cabinet Secretary James Macharia said on Wednesday. Under annuity financing, contractors will borrow money from local banks to implement projects with the Treasury acting as a guarantor. Project costs will be pre-determined and the State will negotiate for low interest rates for the contractors. The contractor will be required to design, construct, finance and maintain the road for 10 years before handing it over to the government. This model seeks to improve efficiency among contractors while ensuring availability of funds to prevent time and cost overruns that have been experienced in the past. The government expects annuity financing to hit Sh170 billion in two years.

Thread starter Sinister
Start date Jun 18, 2019

Sinister

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Chinese firm wins Sh13bn Bomas-Rongai road dualling deal

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