State shelves demolition plans

By Ally Jamah

The Government has put off plans to demolish multi-billion shilling buildings in the controversial Mombasa Road/Waiyaki Way expansion project.

Roads Minister Franklin Bett yesterday said they might redesign the project.

The announcement comes a day after the World Bank (WB), the main financier of the Nairobi Urban Toll Road Project, announced it was pulling out, effectively putting the project in disarray.

"The project as envisaged through the consortium has regrettably collapsed. The Government will now explore alternative ways of executing the project, which may involve restructuring and redesign," he said in a press conference at the Ministry headquarters.

This news will be greeted positively by investors who had urged the Government to redesign the road that would have resulted in compulsory acquisition of land on Mombasa Road and Waiyaki Way in Nairobi.

A section of Mombasa Road, Nairobi, where some buildings had been earmarked for demolition: The Government has put off plans to demolish buildings on Mombasa Road and Waiyaki Way after the World Bank pulled out of the project. [PHOTO: FILE/STANDARD]

Concession contract

The plan would have seen the destruction of prime property worth billions of shillings, including The Standard Group Centre, Sameer Business Park, and Safaricom headquarters. The announcement may also pre-empt a taskforce set up by Prime Minster Raila Odinga to propose the way forward for the project without hurting investors.

The World Bank announcement came as the Government prepared to sign the concession contract this month with the Nairobi Motorway Group, a joint venture composed of Messrs Strabag of Austria and Shikun-Binul of Israel.

The Group was to operate the road for 30 years before restoring it to the state. ""The World Bank formerly communicated to us on Wednesday saying that after a Compliance Review Process, they are not in a position to finance the project as constituted," said Bett.

WB Country Director Johannes Zutt cited concerns about the land acquisition process as well overall integrity of the project.

After the setback Bett said they are now looking for alternative financing of the project, but said WB was still willing to come in on different terms. The minister assured Kenyans that he would abide by the Constitution and the relevant laws with regard to land acquisition for road projects.