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State awards Sh15 billion roads tender

James Momanyi @jamomanyi

The award and funding arrangement for development of Modogashe-Habaswein-Samatar and Rhamu-Mandera roads has been completed.

Construction and funding of the143-kilometre road has been awarded to Hass Consortium-GVR Infra Ltd, Shandong Hi-Speed Nile Investment Company and Stanbic Bank of Kenya.

The North Eastern roads will cost Sh15 billion and will be constructed under the government’s roads annuity programme.

The companies signed an indicative term sheet for the financing on the side lines of the just concluded 2018 Beijing Summit of the Forum on China-Africa Cooperation (FOCAC).

Speaking during the tripartite-agreement, Transport and Infrastructure Cabinet secretary, James Macharia said the project would go along away in helping the government realise the goal of tarmacking 10,000 kilometres of road under annuity programme.

“When we began this programme stakeholders were slow in picking it up but I am glad it is now in top gear and stakeholders have realised the returns from the investment is good,” he said.

The project will see the 143 kilometres of tarmac laid between Modogashe-Habaswein-Samatar and Rhamu-Mandera roads. While Stanbic and China Exim Bank will fund the project to the tune of $81 million (Sh8.1 billion), the rest will be taken care of as equity.

Hass Consortium-GVR Infra Ltd was awarded a tender under Phase1 of the 10,000kms of annuity programme, and has already mobilised and will begin construction on October 1 which will be completed within 30 months.

The road will be constructed and maintained by Shandong Hi-Speed Nile Investment Company under a design-Build-Finance-Maintain and transfer contract structure under a 10-year public private partnership model.