The Star (Nairobi)

12 March 2014

Kenya: AfDB to Review Its Future Funding Policy

THE African Development Bank has said its regional member states may be required to sign up to a new procurement policy to qualify for future financing.

The bank said its old procurement policy is overdue and it is currently conducting a review to be ready by October 2014 so as to provide a blueprint for the implementation of the new policy that will streamline it with other multilateral development banks like World Bank.

AfDB procurement and fiduciary services director, Vinay Sharma, said review will enable a one percent reduction in procurement costs on the continent, which is $3 billion (Sh259.44 billion) in an annual savings for the bank.

"The primary objective of this review is to make the procurement of the bank more effective and to bring transformational change to how countries do their own public procurement," he said.

A developing economy such as Kenya will likely change its donor financing rules due to the high appetite for development projects like the €28.1 million (Sh3.36 billion) Thika thermal power plant that was funded by AfDB.

Last week, the country closed a $930 million (Sh79.98 b) loan deal with the bank, which is aimed at supporting infrastructure development.

The Kenya Urban Roads Authority also announced in December plans to expand the Outer Ring Road in Nairobi into a dual carriageway at a cost of Sh10.5 billion where the lender will contribute 88.5 percent of the amount.

Ads by Google

Copyright © 2014 The Star. All rights reserved. Distributed by AllAfrica Global Media (allAfrica.com). To contact the copyright holder directly for corrections — or for permission to republish or make other authorized use of this material, click here.

AllAfrica publishes around 2,000 reports a day from more than 130 news organizations and over 200 other institutions and individuals, representing a diversity of positions on every topic. We publish news and views ranging from vigorous opponents of governments to government publications and spokespersons. Publishers named above each report are responsible for their own content, which AllAfrica does not have the legal right to edit or correct.

Articles and commentaries that identify allAfrica.com as the publisher are produced or commissioned by AllAfrica. To address comments or complaints, please Contact us.