27 January 2014

Kenya Signs AfDB Sh18 Billion Road, Dam Loan

Nairobi — The National Treasury on Monday signed loan and protocol grants agreements with the African Development Bank (AfDB) amounting to Sh18.6billion for the Thwake multi-purpose dam and Outer Ring road projects.

The Nairobi Outer Ring road project which will take Sh8.3 billion of the funds, involves the improvement of the existing single carriageway road, to a two-lane dual carriageway from Thika road at GSU Headquarters to the Eastern bypass roundabout, Embakasi.

On completion, the dual carriageway will have service roads, grade separated intersections, pedestrian-foot-over bridges, walkways and cycle tracks over the entire length of the road.

The 13 kilometre project is expected to directly enhance the traffic circulation and eliminate congestion to and from the Eastern part of Nairobi.

"On completion, the road will be crucial in completing the Nairobi-Thika Highway and help further decongests the Eastern part of the city which has a high population density," Treasury Cabinet Secretary Henry Rotich noted during the signing ceremony at the Treasury offices.

"Our complementary activities will include planting of 4,500 trees along the road, training of 500 youths as artisans in local technical institutions and designs studies of JKIA runway/Airports Operational Management," he added.

The project is expected to kick off in April this year and to be completed in the next three years.

Meanwhile, Sh10.3 billion will go to the Thwake Multi-purpose Water Development Program, which comprises a dam for water supply, hydropower generation and irrigation project.

The objective of the project is to increase water storage for rural and urban human consumption, with a focus on the semi-arid counties of Kitui and Makueni, and the ICT city of Konza.

It will also provide regular flows on Athi River downstream of the dam for flood and drought mitigation.

"When completed, the project will significantly increase water and food on the lower eastern region by harvesting 680million cubic meters of water for human consumption, generation of 20Megawatts if hydropower and for irrigating 40,000 hectares of land," Water Principal Secretary James Teko Lopoyetum said.

The two loan agreements will be paid for a period of 40 years, at a rate of 1percent, with a grace of period of 10 years.

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