Kenya, Chinese firm sign contract for Naivasha-Malaba SGR project

MOMBASA: Kenya and China Communications Construction Company (CCCC) have signed an agreement for the construction of the Naivasha-Malaba Standard Gauge Railway line.

This came after the Cabinet approved signing of commercial contracts between Kenya Railways and CCCC. The latest deal falls under the Kenya SGR Developments Project, which is valued at Sh549 billion.

The entire network was supposed to be in operation by December 2018 and the member states are working towards meeting the timelines of the directive.

The four commercial contracts for the development of the four elements of the project include Naivasha-Kisumu, Kisumu-Malaba, Kisumu Port Development and Modernisation and expansion of the Inland Container Depot at Embakasi in Nairobi.

Kenya is constructing a Standard Gauge Railway between Mombasa and Malaba as part of the East African Community protocol for the development of an SGR connecting the port of Mombasa to Kampala, Kigali and Juba.

According to a communiqué issued by Kenya Railways Managing Director Atanas Maina, each country is supposed to develop the railway line within its borders.

The latest deal ensures the Government secure a loan to support the development of phase 2A and construction is expected commence by the end of 2016. Maina said the total contract price for this section stood at Sh153 billion ($ 1.5 billion).

“Following the Attorney General’s approval of the drafts, the two organisations signed four contracts for the development of the four elements of the SGR project. Kenya is therefore developing the Mombasa –Malaba section of the proposed network to Kigali through Uganda,’’ Maina said in the statement.

He added that due to the size of the project, the Mombasa –Malaba section is being developed in two phases-- Phase 1 ?Mombasa – Nairobi) is already under development, having commenced on December 14, 2014, and is due to be operational by July 2017.

Phase 2 (Nairobi–Malaba) has been divided into three sub-phases and will include Phase 2A (Nairobi–Naivasha), Phase 2B (Naivasha–Kisumu), including the development of a new high capacity port at Kisumu, and Phase 2C (Kisumu –Malaba).