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The Nairobian

US agency bids to fund Mombasa-Nairobi expressway

Business

By Graham Kajilwa | Sep 27, 2016

State House Spokesperson Manoah Esipisu during a press briefing ahead of India's Prime Minister Narendra Modi's visit to Kenya. hE said yesterday that Overseas Private Investment Corporation (OPIC) has already signed a letter of interest with Kenya. (PHOTO: FILE/ STANDARD)

The US government’s development agency has expressed interest in financing the construction the Nairobi-Mombasa expressway.

State House Spokesperson Manoah Esipisu said yesterday that Overseas Private Investment Corporation (OPIC) has already signed a letter of interest with Kenya.

The country was represented by Treasury Cabinet Secretary Henry Rotich at the signing, which was done on the sidelines of the US-Africa business forum last week.

Bechtel, a California-based construction and engineering company, and Export–Import Bank of the United States, the government’s official export credit agency, will also be taking part in talks on the 485km expressway.

“In recent times, we have seen a surge in foreign investment in Kenya. That surge continues. Recently, the US’ OPIC opened an office in Kenya. OPIC offers support to US companies as they invest abroad, and to the disadvantaged in the countries in which those firms invest: OPIC already has a large portfolio worth of projects in Kenya,” said Mr Esipisu.

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“I can confirm US investor interest in this Nairobi-Mombasa expressway. Among the partners involved are Bechtel Corp, the United States’ largest construction and civil engineering firm, which will be supported in this endeavour by the United States’ Export-Import Bank and OPIC.”

OPIC is said to have Sh70 billion ($700 million) worth of investments in the country across 52 projects in financing and political risk insurance.

Esipisu said the state is confident that these discussions will bear fruit, and that Kenya will soon enjoy the new infrastructure on the Nairobi-Mombasa route.

“More importantly, though, this is a show of continued massive international investor confidence in our economy and our country.”

Combined with the construction of the Standard Gauge Railway (SGR), the road that will turn the Nairobi-Mombasa Highway into six lanes is expected to ease transportation of goods from the Mombasa port. Currently, about 95 per cent of cargo is transported by road.

The Government plans to have the six-lane expressway operational by 2022, with SGR scheduled to start commercial operation in June next year.