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American construction company Bechtel Executive is set to begin work on the Sh300 billion Nairobi-Mombasa expressway.
The road will be built and owned by a private investor after the Kenyan government declined to take a loan to fund the mega highway, in a bid to curb the ballooning public debt.
On Tuesday, Transport and Infrastructure Cabinet Secretary James Macharia said private investors will fund the construction of the 473-kilometre road and recoup back their cash by charging a toll fee.
Kenya's public debt crossed Sh5 trillion mark this year triggering warnings from international agencies such as the International Monetary Fund (IMF). Bechtel has been pushing Kenya to take a loan for the project, arguing the Public Private Partnership (PPP) model would cost the taxpayers Sh540 billion in the next 25 years.
However, CS Macharia noted the PPP model, which will later see the road transferred to the the government, was a cheaper option for Kenya.
“We do not want to take more debt if the private sector can do the job. National Treasury team through the PPP unit and their advisers have done the maths, and preference is for PPP option,” Mr Macharia said in a telephone interview.
The six-lane superhighway will allow motorists to cruise uninterrupted at a speed of 120 kilometre per hour, reducing travel time between the two cities by half. They will, however, pay a toll fee for driving through the infrastructure.
Comments
This was a smarter option by far.More roads should be built using this model instead of driving up the public debt.
The public is paying either way.
You have an option at least, use SGR, the old route or the yet to be built highway BUT you pay toll.
Good job hopefully the Americans won’t bring corruption n impunity on this highway construction.They should gives jobs to our youths n pay them better.Its ok they elect the toil stations juu that’s what most countries do so the Loan can pay itself Pole pole.Many countries in Europe u pay lots of Euros as toil when using the highways.Even in Australia there r toil station everywhere same with USA juu they need to pay China their money which have bin borrowed to build this highways so good way to go kenya.Loans a must if it’s going to infrastructures.
If we stop all the government waste and corruption, we can afford to pay cash for this highway!
Unfortunately, we keep voting in the same corrupt leaders we have had for 60+ years, and replacing them with their family members!
If we get rid of all the wastage in government and the monies lost through corruption, then we can pay for this road using cash!! Instead, we Kenyans keep voting for the same old corrupt leaders and replacing them with their relatives! We've been doing this for almost 60 years now!! With the same results!!
I trust USA... Can't wait to ply on the expressway.
When is the oil money going to start flowing.We could could use some of that "windfall profits" for such projects of national importance.
@Maxiley true the wazungus wanatema mate about the oil which full production is starting this
Year.Am telling u it’s time u invest in 254 juu kuna pesa mingi sana on the ground.From Lamu port,Lappset,Konza city,oil,Naivasha nakuru Highway eight lane (4 each side) has started.N now the big 4.Bratha usichelewe.The country is moving not forgetting sgr inafika naivasha end next yr then ipande on yr way to kisumu.Guys msikunje mkasema mkenya halisi hakuwaambia mrushe tupesa hapa mtaani.
Facebook Kenyan 500Km backbone
https://www.linkedin.com/pulse/facebook-kenyan-500km-backbone-osvaldo-c…
China is Screwed; and this is also why Codec screwed Raila's Presidential 2017 win.