On-going road construction
The World Bank has approved a Sh20 billion fund for the re-carpeting of the Northern Corridor that links Kenya to the landlocked countries in the Great Lakes region of East and Central Africa.
This approval increases World Bank’s support for the Northern Corridor Transport Improvement Project (NCTIP) to Sh36.75 billion, up from the initial financing of Sh16.5 billion. The Bank’s Executive Board approved the initial funding in June 2004.
The approval of the funds to be used for the improvement of the Mau Summit to Kisumu road, says Finance Minister Uhuru Kenyatta, is a clear indicator that Kenya is still considered a viable destination for donor funding.
“Despite the hard economic times its not all gloom as some parties may be implying,” The finance minister said Friday.
At the same time the Kenyan government signed funding agreements for two loans amounting to Sh4.52 billion and Sh6.87 billion from the French government. The soft loans will be used facilitate the erection of the Nairobi-Mombasa very high voltage line and improve the Mombasa water and sanitation services.
Speaking during the signing ceremony Mr Kenyatta said the existing transmission infrastructure between Mombasa and Nairobi could be overstretched in the next two years hence the need to have them replaced.
“The new connection will also facilitate the interconnections with Tanzania, Zambia and SouthAfrica,” Mr Kenyatta said.
French Ambassador to Kenya Elisabeth Barbier said during the ceremony that the French government had increased their allocation of funding to Africa to Sh14.4 billion.
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