FRANCIS DA DON
JF-Expert Member
- Sep 4, 2013
- 38,920
- 44,970
Thats rather uncalled for, Tanzanians don't support this.
Kenya's $3.5 Billion Road Project Delayed by Debt Concerns
Kenya's $3.5 Billion Road Project Delayed by Debt Concerns
- Thread starter Geza Ulole
- Start date
elbarik
JF-Expert Member
- Jul 5, 2016
- 576
- 395
Hata mimi nakubaliana na wewe. Its either ppp ama huo mradi ukae. $3b on top of our current debt itatuumiza sana.
Geza Ulole
JF-Expert Member
- Oct 31, 2009
- 65,136
- 91,917
- Thread starter
- #63
Business News
Kenya's $3.5 billion road project delayed by debt concerns
By Bloomberg
Published: Apr 15th 2018 at 23:54, Updated: April 16th 2018 at 07:36
Pedestrians at a zebra crossing on the busy Mombasa Road. The expressway, once completed, is expected to reduce travel time between Nairobi and Mombasa from the current 10 hours to four hours. [Edward Kiplimo, Standard.]
Kenya’s second-biggest infrastructure project since independence five decades ago, a $3.5 billion (Sh350 billion) inter-city expressway, will be delayed amid concerns by lawmakers that East Africa’s largest economy is taking on too much debt, the company building it said.
While Kenya is ramping up construction of much-needed infrastructure to underpin economic growth, the cost of the mega projects, mostly financed by Chinese loans, has stirred concern that the debt is unsustainable for the $71 billion (Sh7.1 trillion) economy.
ALSO READ: Yes, our national financial burden is too heavy to bear
The nation’s debt could rise to 58 per cent of gross domestic product by the end of June, from 40.6 per cent in the 2011-12 fiscal year, according to World Bank estimates.
Construction of the 473km four-lane highway between the capital, Nairobi, and the second-biggest city, Mombasa, will be undertaken by San Francisco-based Bechtel Group Inc., which has arranged commercial loans for Kenya to undertake the project. The country will not seek concessional financing or a public-private partnership, according to the company.
The Kenya National Highways Authority wasn’t aware of any delay, public relations officer Charles Njogu said by phone. “The agreement has, however, to be scrutinised by lawmakers because of its size,” he said. Transport and Infrastructure Secretary James Macharia didn’t answer calls to his mobile phone nor respond to a text message seeking comment.
Central bank Governor Patrick Njoroge told lawmakers Thursday that the country needs to move into “non-debt creating ways” of financing projects, citing the Bechtel project.
Avoid fake news! Subscribe to the Standard SMS service and receive factual, verified breaking news as it happens. Text the word 'NEWS' to 22840
There’s “less and less headroom for additional borrowing, given the currency concerns, and that room is narrowing,” he said.
ALSO READ: MPs reject bid to scrap interest rates control
The financing arrangements for the toll road are now expected to be in place by end-June, the initial sod-turning target, and construction work will now begin in the second half of the year, said Andrew Patterson, Bechtel’s regional president for Africa.
“This is looking to be slipping,” he said in emailed responses to questions on Monday. “The debt level is a big concern and we are working to find the right balance with Treasury in regards to the financing.” Kenya’s biggest infrastructure project since independence from Britain in 1963 is an $8.7 billion (Sh870 billion) standard-gauge railway from Mombasa to the Ugandan border that’s being built under China’s flagship Belt and Road program. The first phase of the line that replaces a parallel century-old link built during the colonial era is already operational.
Bechtel said in December it was supporting the Kenyan government in negotiations with the US Export-Import Bank, the Overseas Private Investment Corp and UK Export Finance to finance the dual carriageway.
Kenya's $3.5 billion road project delayed by debt concerns
Kenya's $3.5 billion road project delayed by debt concerns
By Bloomberg
Published: Apr 15th 2018 at 23:54, Updated: April 16th 2018 at 07:36
Pedestrians at a zebra crossing on the busy Mombasa Road. The expressway, once completed, is expected to reduce travel time between Nairobi and Mombasa from the current 10 hours to four hours. [Edward Kiplimo, Standard.]
Kenya’s second-biggest infrastructure project since independence five decades ago, a $3.5 billion (Sh350 billion) inter-city expressway, will be delayed amid concerns by lawmakers that East Africa’s largest economy is taking on too much debt, the company building it said.
While Kenya is ramping up construction of much-needed infrastructure to underpin economic growth, the cost of the mega projects, mostly financed by Chinese loans, has stirred concern that the debt is unsustainable for the $71 billion (Sh7.1 trillion) economy.
ALSO READ: Yes, our national financial burden is too heavy to bear
The nation’s debt could rise to 58 per cent of gross domestic product by the end of June, from 40.6 per cent in the 2011-12 fiscal year, according to World Bank estimates.
Construction of the 473km four-lane highway between the capital, Nairobi, and the second-biggest city, Mombasa, will be undertaken by San Francisco-based Bechtel Group Inc., which has arranged commercial loans for Kenya to undertake the project. The country will not seek concessional financing or a public-private partnership, according to the company.
The Kenya National Highways Authority wasn’t aware of any delay, public relations officer Charles Njogu said by phone. “The agreement has, however, to be scrutinised by lawmakers because of its size,” he said. Transport and Infrastructure Secretary James Macharia didn’t answer calls to his mobile phone nor respond to a text message seeking comment.
Central bank Governor Patrick Njoroge told lawmakers Thursday that the country needs to move into “non-debt creating ways” of financing projects, citing the Bechtel project.
Avoid fake news! Subscribe to the Standard SMS service and receive factual, verified breaking news as it happens. Text the word 'NEWS' to 22840
There’s “less and less headroom for additional borrowing, given the currency concerns, and that room is narrowing,” he said.
ALSO READ: MPs reject bid to scrap interest rates control
The financing arrangements for the toll road are now expected to be in place by end-June, the initial sod-turning target, and construction work will now begin in the second half of the year, said Andrew Patterson, Bechtel’s regional president for Africa.
“This is looking to be slipping,” he said in emailed responses to questions on Monday. “The debt level is a big concern and we are working to find the right balance with Treasury in regards to the financing.” Kenya’s biggest infrastructure project since independence from Britain in 1963 is an $8.7 billion (Sh870 billion) standard-gauge railway from Mombasa to the Ugandan border that’s being built under China’s flagship Belt and Road program. The first phase of the line that replaces a parallel century-old link built during the colonial era is already operational.
Bechtel said in December it was supporting the Kenyan government in negotiations with the US Export-Import Bank, the Overseas Private Investment Corp and UK Export Finance to finance the dual carriageway.
Kenya's $3.5 billion road project delayed by debt concerns
Geza Ulole
JF-Expert Member
- Oct 31, 2009
- 65,136
- 91,917
- Thread starter
- #64
Hii maneno ni vp?
Janerose mzalendo
JF-Expert Member
- Oct 4, 2018
- 3,881
- 2,813
Hahaha just do it. You'll fail miserablymiserablymiserably
He who digs a pit will fall into it, he who rolls a stone will roll back on them.
You may plan a misfortune to Kenyans but end up being the recipient of that misfortune u know.
Junior Clinton Mr.
JF-Expert Member
- Apr 20, 2013
- 1,075
- 1,423
Can't believe you quoted my line from last year [emoji23] Surely wanted that to happen but guess what?I married a Kikuyu so i wish yall well there[emoji23][emoji23]
Sent from my SM-N9006 using JamiiForums mobile app
Tony254
JF-Expert Member
- May 11, 2017
- 16,017
- 16,431
Sasa hii ni loan ingine tena. Walikua wanatudanganya eti itakuwa ppp. Hii debt nani atalipa? It is obviously unsustainable debt. This is yet another single sourced project, discussed behind closed doors without public participation or public tendering, Ruto and Uhuru must be involved in this deal because there is no way they can allow such nonsense to go on without having something to do with it. No tender, no public participation = corruption. Lying to Kenyans that it is ppp shows how evil and corrupt these people are.Kenya's $3.5 Billion Road Project Delayed by Debt Concerns
By
David Herbling
April 12, 2018, 7:00 PM EDTUpdated on April 13, 2018, 6:56 AM EDT
- State plans to finance the project using commercial loans
- Debt-to-GDP ratio may hit 58% in June, World Bank estimates
Photographer: Tony Karumba/AFP via Getty Images
Kenya’s second-biggest infrastructure project since independence five decades ago, a $3.5 billion inter-city expressway, will be delayed amid concerns by lawmakers that East Africa’s largest economy is taking on too much debt, the company building it said.
While Kenya is ramping up construction of much-needed infrastructure to underpin economic growth, the cost of the mega projects, mostly financed by Chinese loans, has stirred concern that the debt is unsustainable for the $71 billion economy. The nation’s debt could rise to 58 percent of gross domestic product by the end of June, from 40.6 percent in the 2011-12 fiscal year, according to World Bank estimates.
Construction of the 473-kilometer (294-mile) four-lane highway between the capital, Nairobi, and the second-biggest city, Mombasa, will be undertaken by San Francisco-based Bechtel Group Inc., which has arranged commercial loans for Kenya to undertake the project. The country will not seek concessional financing or a public-private partnership, according to the company.
The Kenya National Highways Authority wasn’t aware of any delay, public relations officer Charles Njogu said by phone. “The agreement has, however, to be scrutinized by lawmakers because of its size,” he said. Transport and Infrastructure Secretary James Macharia didn’t answer calls to his mobile phone nor respond to a text message seeking comment.
Central bank Governor Patrick Njoroge told lawmakers Thursday that the country needs to move into “non-debt creating ways” of financing projects, citing the Bechtel project.
There’s “less and less headroom for additional borrowing, given the currency concerns, and that room is narrowing,” he said.
Big Concern
The financing arrangements for the toll road are now expected to be in place by end-June, the initial sod-turning target, and construction work will now begin in the second half of the year, said Andrew Patterson, Bechtel’s regional president for Africa.
“This is looking to be slipping,” he said in emailed responses to questions on Monday. “The debt level is a big concern and we are working to find the right balance with Treasury in regards to the financing.”
Kenya’s biggest infrastructure project since independence from Britain in 1963 is an $8.7 billion standard-gauge railway from Mombasa to the Ugandan border that’s being built under China’s flagshipBelt and Road program. The first phase of the line that replaces a parallel century-old link built during the colonial era is already operational.
Bechtel said in December it was supporting the Kenyan government in negotiations with the U.S. Export-Import Bank, the Overseas Private Investment Corp. and U.K. Export Finance to finance the dual carriageway. The lead arranger will be appointed by June, allowing construction to begin, Patterson said.
Bechtel plans to deliver 50 kilometers of road every six months, completing the project in early 2024. The highway is expected to cut travel time between the two cities to four hours from 10. The construction will be done under an engineering, procurement and construction contract, while toll fees will be levied through a public-private-partnership agreement.
Kenya's $3.5 Billion Road Project Delayed by Debt Concerns