Kenya and the China Communications Construction Company (CCCC) have signed an agreement for the construction of the Naivasha-Malaba Standard Gauge Railway line under the Kenya SGR Developments Project valued at Sh549 billion (USD 5.4 billion).
Under the contract, the two companies will collaborate on the conducting of a feasibility study for the Nairobi to Malaba section of the project. In addition, the contract will facilitate the transfer of technology and will create the skills and capacity for construction, maintenance and operation of the railway upon completion.
The commercial contract entails four elements namely Naivasha – Kisumu section, Kisumu Malaba section; Kisumu Port Development; and modernization and expansion of the Inland Container Depot (ICD) at Embakasi in Nairobi.
On March 23, the Cabinet approved the signing of Commercial Contracts for the development of Naivasha/ Kisumu / Malaba Section between Kenya Railways and China Communications Construction Company Ltd (CCCC) to facilitate the process of identifying suitable financing for the project on a Government to Government platform.
Kenya, Uganda, Rwanda and South Sudan have signed and ratified a Protocol for the development of an SGR connecting the port of Mombasa to Kampala, Kigali and Juba. Kenya is therefore developing the Mombasa –Malaba section of the entire proposed network to Kigali through Uganda. Construction on the Mombasa to Nairobi section is at an advanced stage and the Government has secured a USD 1.5 billion loan from the China’s Government to support the development of Phase 2A between Nairobi and Naivasha and construction will commence by the end of 2016.
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