Chinese firms bag Sh253 billion road tender
Business
By
Otiato Guguyu
| Aug 24, 2018
A consortium of Chinese firms has been picked to build the proposed 150km road between Kenya and Uganda at a cost of $253.06 million (Sh25.3 billion).
Led by China Wu Yi Company Ltd, the Chinese firms beat a field of 23 other bidders, including China Dalian International Economic and Technical Cooperative Group Co Ltd, China New Era Group Corporation in a joint venture with Zheijang Bayong Highway Eng Co Ltd and China Railway No 5 Engineering Group Company.
Regional integration
The project, which runs from Kapchorwa town to Suam on the Ugandan side and Suam to Kitale and then to Eldoret by-pass at Leseru on the Kenyan side, will take over five years to complete.
Deputy President William Ruto said at Kapchorwa last weekend the road would be a key enabler to regional integration and would attract investors and boost both imports and exports between the two countries.
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“Trade collaborations between Kenya and Uganda as well as capital investments will result in new, diversified income streams and strengthen the two countries,” said Mr Ruto.
Uganda will contribute $105.76 million (Sh10.5 billion) while Kenya will contribute $147.3 million (Sh14.7 billion) to the project, which is being financed through a loan by the African Development Bank and the African Development Fund.
The road will run 77km on the Kenyan side.