SGR phase II in tatters as Kenya's Chinese master terminates funds

ECONOMY
Chinese bank cuts Sh32bn SGR funds
MONDAY, APRIL 30, 2018 9:27
BY BONFACE OTIENO

The financier of the standard gauge railway (SGR), China Exim Bank, has cut funding to ongoing work on the second phase of the railroad by a whopping Sh32 billion, citing the barrage of court cases against the project.

Supplementary budget documents tabled in Parliament last week show that allocations to the SGR project dropped by Sh42 billion, including the Sh32 billion held back by the lender.

The remaining Sh10 billion was counterpart financing from the railway development levy fund that has now been reallocated to pay contractors who built the Mombasa-Nairobi section of the project and settle the management fees payable to the Chinese operator of the rail line.

“The State department had projects such as Nairobi-Naivasha SGR allocation reduced by Sh42 billion of which Sh32 billion was from a donor because of court cases, while Sh10 billion railway development levy fund was re-allocated to Mombasa-Nairobi SGR project,” the supplementary budget II says.

MPs responded to the decision with a statement saying “the reduction in funding for the project could result in delayed completion and increase in interest and other claims on delayed payments and increased costs of projects than originally planned.”

Multiple challenges

Phase II of the SGR project, covering the Nairobi-Naivasha section of the line, has faced multiple challenges since work on it began in the last quarter of 2017, including a court case filed by environmentalists opposed to the line’s passage through the Nairobi National Park.

Last September, the National Environment Tribunal temporarily stopped construction of the section until a dispute challenging it is determined.

READ: Macharia rubbishes critics of building rail through park - VIDEO

ALSO READ: Land question slows down Jubilee’s flagship projects

The 120-kilometre Nairobi-Naivasha line, which cuts through the Nairobi National Park, town centres and agricultural zones like Maai Mahiu will cost the taxpayer Sh150 billion.

It connects to the recently completed Mombasa-Nairobi segment and is ultimately expected to connect Nairobi to Kampala via Naivasha, Kisumu and Malaba. The contractor, China Road and Bridge Corporation (CRBC), moved to site last October and has been working since despite numerous challenges.

Delays

Last September, lack of a land compensation plan delayed works on the project up to four months after Kenya secured funding from the Chinese.

Works on the project were once again suspended for about one week in January as workers protested low pay and harsh working conditions.

Delay in completing the section could also affect construction of the segment to Malaba, where it will connect with the Ugandan section.

The Kenyan SGR project is in competition with Tanzania’s Dar es Salaam line that also seeks to connect landlocked Uganda and Rwanda respectively.

Tanzania has already grabbed an oil pipeline that was to run from Uganda through Kenya to the coast and Nairobi is keen on ensuring a repeat of the same does not happen.

Kenya Railways, the project owner, did not respond to our queries on the subject.

https://www.businessdailyafrica.com...-SGR-funds/3946234-4536894-skit3sz/index.html


MY TAKE
Better learn to be self reliant.

LOL I meant #funds#

Duh, bad news for this project it might take ages to finish the project.

A middle income country cannot build even 1 km of SGR with internal funds while an LDC builds 700Km electrified SGR with its own funds.
What a shame!!

They are battling with 120km in 2 strong years haha and budget allocation is dodged like nothing is going on hahaha

Chinese toys are getting rusting now

Mkikuyu- Akili timamu said:

A middle income country cannot build even 1 km of SGR with internal funds while an LDC builds 700Km electrified SGR with its own funds.
What a shame!!

Click to expand...

Look at way LDC Tanzania is made a reference of everything middle income but hunger stricken Kenya does!

Wivu ni mbaya ,

huwa mnashinda hapa mkileta negative news tena fake kuhusu kenya....naivasha tunafika this year.
Wivu pelekeni Morogoro.

REDEEMER. said:

They are battling with 120km in 2 strong years haha and budget allocation is dodged like nothing is going on hahaha

Chinese toys are getting rusting now

Click to expand...

And Kagame has met Museveni twice this year in trying to pursued him quit Malaba connection.

Geza Ulole said:

Look at way LDC Tanzania is made a reference of everything middle income but hunger stricken Kenya does!

Click to expand...

Wapi picha ya Iyo SGR yenu ama ni ile video ya vumbi.

BlietzKrieg said:

Wivu ni mbaya ,

huwa mnashinda hapa mkileta negative news tena fake kuhusu kenya....naivasha tunafika this year.
Wivu pelekeni Morogoro.

Click to expand...

Aa wapi hamna maarifa hayo! Umeona hunger relief repoRt on Kenya kabla na baada ya mafuriko? Floods have swept Galana farming project away. Apparent that project was supposed to save Kenya from hunger. Aiseee poleni sana maana na kule Mozambique floods zimezomba infrastructure.

Death toll from Mozambique summer rains reaches 50

Heavy rains reduce Vale Moçambique’s coal production in 2018
7 May 2018
| Brazil| Mozambique

Flooding in central and northern Mozambique has affected the production capacity of Vale Moçambique’s two mines, leading to a downward review of the production in 2018 from 16 million tons to 15 million tons, the chairman of Brazilian group Vale said.

“At the beginning of the year we had a forecast of 16 million tons, but in the meantime, there were heavy rains, both in the Nampula and Nacala regions, and in Tete, which greatly damaged our activity,” said Mario Godoy.

In 2017, Vale produced 11.2 million tons of coal, compared to 5.6 million tons in 2016, as a result of increased production at the Moatize II mine, the company’s second mine in Tete province, central Mozambique .

Godoy pointed out that Vale will still have to consolidate the coal production process in Mozambique to fully explore the export capacity of 18 million tons of coal of the Nacala Logistics Corridor – which comprises a 912 kilometre railway line and the deep water port of Nacala.

In 2010, Vale posted its first positive result before interest, taxes, depreciation and amortization (EBTIDA) since 2010, with US$330 million, an increase of US$384 million compared to a loss of US$54 million in 2016, according to the report and accounts of the Brazilian group.

Marcelo Tertuliano, the chief financial officer of Vale Moçambique, said that this change was mainly due to the increase in the price of the product on the international market driven by the increasing inspection and restriction of coal mines in China as well as the increase of production. (macauhub)


Heavy rains reduce Vale Moçambique’s coal production in 2018

Geza Ulole said:

And Kagame has met Museveni twice this year in trying to pursued him quit Malaba connection.

Click to expand...

Now they are starting to get the best of JPM
Unfortunately they have already failed

Tanzania has already grabbed an oil pipeline that was to run from Uganda through Kenya to the coast and Nairobi is keen on ensuring a repeat of the same does not happen.

ay 2018

Global Weather Hazards Summary - May 18 - 24, 2018
REPORT
from Famine Early Warning System Network
Published on 18 May 2018 —View Original

Download PDF (1.55 MB)

1. Due to poor rainfall since November western Namibia is in a severe drought. Conditions may worsen as limited rain is forecast next week.
   
   
2. In southwestern Madagascar, an uneven and inadequate rainfall distribution since the start of the rainfall season has resulted in severe drought. Drought conditions are likely to persist.
   
   
3. Insufficient rain since January has resulted in large moisture deficits and below-average vegetation conditions over portions of northwestern Angola.
   
   
4. Below-average rain over the past four weeks has led to large moisture deficits and poor ground conditions over portions of the Nampula province of northern Mozambique.
   
   
5. Poorly-distributed rain since late February has resulted in abnormal dryness across central and northeastern Ethiopia.
   
   
6. A slow onset to seasonal rainfall across the southern Gulf of Guinea countries has led to strengthening moisture deficits throughout the region.
   
   
7. Several consecutive weeks of enhanced rainfall over many parts of Kenya, southern Somalia, Tanzania, Rwanda, Burundi, and Uganda has led to flooding. Rainfall is expected for the next week, continuing risk of flooding.
   
   
8. Several consecutive weeks of below-average rainfall in Guinea and Sierra Leone has resulted in dry conditions and degraded ground conditions.
   
   
9. Heavy rain is expected to track through the Gulf of Aden to coastal Yemen, northern Somalia, Djibouti, and Ethiopia.
   

Global Weather Hazards Summary - May 18 - 24, 2018

SGR phase II is proceeding at neck-breaking speed. Bridges and tunnels are being built all over.
This issue of court cases that has brought about the alleged cutting of funds is being dealt with.
As a matter of fact, the court cases have been overtaken by time since the issue was not to have the line pass inside Nairobi National Park. As we speak, construction inside the park has reached a point of no return, irrespective of any court decision.

And if I remind you, even phase I to Nairobi was built with very many problems.

these are minimal problems yaani kelele za chura pale mtoni....i thought it was something significant kama lack of funding...kumbe ni court cases za environmentalists😀😀😀😀

Hahaha... nimecheka hadi Christmas teeth imeonekana... Yani hawa Wadanganyika wanabehave kama vikundi vya kina mama tuu.....

Hivi what's the status of our beloved SGR project so far? au ndo vile kimya kingi chaja na mshindo mkubwa.

Mkikuyu- Akili timamu said:

A middle income country cannot build even 1 km of SGR with internal funds while an LDC builds 700Km electrified SGR with its own funds.
What a shame!!

Click to expand...

ignorant and probably clueless fellow.is the kenyan sgr 100% chinese funded? go research

Nivlark said:

ignorant and probably clueless fellow.is the kenyan sgr 100% chinese funded? go research

Click to expand...

Only 10% is contribution from Kenya in form of levies on fuel pumps n road use!

Mombasa-Nairobi Standard Gauge Railway Project

PROJECT TYPE
New railway line
START OF CONSTRUCTION
2013
EXPECTED COMPLETION
2017
LENGTH
609km
Expand


May 2014, China Exim Bank will fund 70% of the project. Image courtesy of China Road and Bridge Corporation.


The Mombasa-Nairobi line, the first phase of the standard gauge railway project, will connect the port city to Kenya’s capital.

According to a financial agreement signed between Kenya and China on 11

railway line constitutes the first phase of the SGR project that aims to connect Kenya, Uganda, Rwanda and South Sudan.

The Mombasa-Nairobi SGR is the biggest infrastructure project in Kenya since independence. It will shorten the passenger travel time from Mombasa to Nairobi from more than ten hours to a little more than four hours. Freight trains will complete the journey in less than eight hours.

Construction of the 609km-long line began in October 2013 and is scheduled to be completed by December 2017. At least 60 new jobs a kilometre of track or approximately 30,000 jobs are expected to be created during the construction.

The Mombasa-Nairobi phase of the project is estimated to cost KES327bn ($3.8bn). China Exim Bank will provide 90% of the financing while the remaining 10% will be contributed by the Kenyan Government.

Details of the standard gauge railway project
The SGR project is proposed to connect Mombasa to Malaba on the border with Uganda and continue onward to Kampala, Uganda’s capital city. It will further run to Kigali in Rwanda with a branch line to Juba in South Sudan. Branch lines along the route will extend to Kisumu, Kasese and Pakwach.

The SGR is a flagship project under the Kenya Vision 2030 development agenda. It will simplify transport operations across the borders and reduce travel costs, apart from benefiting the economies of Kenya and the neighbouring countries.

The governments of Kenya and Uganda signed a memorandum of understanding (MoU) in October 2009 to construct the SGR from Mombasa to Kampala. A tripartite agreement was signed by the governments of Kenya, Uganda and Rwanda in August 2013 to fast track the development of the railway to their respective capital cities.

The Ugandan section of the SGR line was launched in October 2014. The SGR line from Mombasa to Kigali is expected to be completed by 2018. Kenya Railways Corporation is responsible for the construction of the 1,300km-long track inside Kenya from Mombasa to Malaba via Nairobi.

Details of the Mombasa-Nairobi SGR line
The single-track standard gauge railway between Mombasa and Nairobi will have a route length of 472km and a total length of 609km. It will run through the counties of Mombasa, Kilifi, Kwale, Taita-Taveta, Makueni, Kajiado, Machakos and Nairobi.

The Class 1 line will have a superior design catering to robust and low-maintenance requirement. The new line will run parallel to the existing meter gauge railway and the Mombasa-Nairobi Road or A109 Highway for the most part. It will deviate at certain points to attain the desired gradient and curvature.

State-of-the-art passenger stations will be built at Mombasa and Nairobi, as well as five other intermediate stations at Mariakani, Voi, MtitoAndei, Sultan Hamud and AthiRiver. A total of 40 stations are planned to be built along the line, 33 out of which will be ready when the railway becomes operational.

The freight terminals will be located at the Mombasa port and the Inland Container Depots at Embakasi in Nairobi. The railway line is designed to carry 22 million tonnes a year of cargo or a projected 40% of Mombasa Port throughput by 2035.

The challenges posed by the steep incline and ragged terrain of the Miritini to Mazeras section will be overcome by constructing long viaducts, deep cuttings and high embankments.

Fencing will be provided throughout the Tsavo National Park along the route and underpassages will be built for wild animals at short intervals.

Rolling stock of the SGR line
The line will initially carry diesel cars while electrification is possible in future. Multiple unit passenger trains having a capacity of 960 passengers will travel at an average speed of 120km/h on the line.

Freight trains will have a capacity of 216 TEUs and travel at an average speed of 80km/h. A typical freight train on the line will consist of 54 double stack flat wagons and measure 880m-long.

China will supply the initial rolling stock comprising 56 diesel locomotives, 1,620 wagons and 40 coaches.

Contractors involved
China Road and Bridge Corporation, a subsidiary of China Communications Construction Co., was contracted to build the project according to Chinese railway design standards.

Mombasa-Nairobi Standard Gauge Railway Project - Railway Technology

SGR Phase II