Wednesday, March 30, 2016 Chinese firm to conduct study for extension of SGR to Malaba

By LILIAN OCHIENG'
More by this Author

Casual labourers working on a stretch of Standard Gauge Railway (SGR) in Mombasa on February 10, 2016. FILE PHOTO | NATION MEDIA GROUP

Summary

• The Malaba extension, financed by Kenya-China governments got cabinet’s approval last week, giving way for the two government agencies to sign a contract.
• Speaking at the signing ceremony, the Cabinet Secretary for Transport and Infrastructure Mr James Macharia said the contract paves way for more progress to be made especially in financing.

Kenya has signed an agreement with China Communications Construction Company (CCCC) to conduct a feasibility study informing the extension of the Standard Gauge Railway (SGR) to Malaba.

Kenya Railways Corporation (KRC) Managing Director Mr Atanas Maina and the Vice President for China Communications Construction Company Mr Wen Gang signed the agreement on Tuesday.

The Malaba extension, financed by Kenya-China governments got cabinet’s approval last week, giving way for the two government agencies to sign a contract.

The contract binds the two firms to collaborate in conducting a feasibility study for the Nairobi to Malaba section of the SGR which is set to commence later this year.

Under the agreement, the two firms will also, “facilitate transfer of technology; and creating of skills and capacity for construction, maintenance and operation of the railway upon completion.”

FINANCING

Speaking at the signing ceremony, the Cabinet Secretary for Transport and Infrastructure Mr James Macharia said the contract paves way for more progress to be made especially in financing.

“We are happy with the progress and even as we sign the commercial contract for the second phase we are confident that we will be able to deliver the project,” Mr Macharia said.

KRC stated that the project entails construction of the Naivasha – Kisumu rail section, Kisumu Malaba section; Kisumu Port Development; and modernisation and expansion of the Inland Container Depot (ICD) at Embakasi in Nairobi.

“The government has secured a Sh153 billion (US$ 1.5 billion) loan from the Government of the People’s Republic of China to support the development of Phase 2A between Nairobi and Naivasha and construction will commence by the end of 2016,” said the statement.

The SGR between Mombasa to Malaba is set to be over 900km long, easing congestion in main highways and facilitating cross border trade.