Qatar to fund Sh12.9 billion Isiolo road
By Macharia Kamau | April 25th 2014
By Macharia Kamau
Kenya: The Qatari Government is considering financing the construction of a 175-kilometre road in North Eastern Kenya running between the towns of Isiolo and Modogashe at a cost of Sh12.9 billion.
The Qatar finance ministry earlier this week said it was exploring the possibility of funding the construction of Isiolo-Garbatula-Modogashe road to the tune of $150 million (Sh12.9 billion).
Ali Al-Emadi, the country’s finance minister announced this when he met President Uhuru Kenyatta, who was on an official visit to the Middle Eastern country this week where he appealed to Qatari investors to consider investments in Kenya.
A statement from State House said the Qatari Government was also considering working with Kenya on the proposed Lamu Port South Sudan Ethiopia Transport corridor. The corridor will consist of road, railway and pipeline from Lamu to Addis Ababa and Juba through Isiolo. It is expected to be implemented in a public-private partnership model.
“The Government has developed a strong framework for Public Private Partnerships, which safeguards investment and reduces risks across the sectors of our economy,” the President said.
Uhuru said Kenya was looking to form partnerships with Qatar to tap into its expertise in handling mineral and oil wealth that it has discovered in the recent past. Qatar is oil rich and has a working mechanism of sharing the proceeds from the resources among the communities, exploration and production firms and government as well as invest for future.
“We want the resources that we are now discovering to be used for the benefit of our nation and for our people. Therefore, we want to partner with people who we have seen utilising their resources in a similar manner — and I think Qatar is one such nation,” he said.
The Qatari and Kenyan governments reached an agreement on avoidance of double taxation that would reduce the tax burden for investors. They also agreed on reciprocal promotion and protection of investment, which would guarantee the rights and property of investors from Qatar and Kenya. Several memoranda of understanding were signed between Kenyan and Qatari ministries and state corporations.
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