Kenya, China to sign Sh380bn deal for Kisumu SGR

SGR workers laying the Nairobi-Naivasha track on August 16, 2018. /COURTESY
SGR workers laying the Nairobi-Naivasha track on August 16, 2018. /COURTESY

The government is set to sign a Sh380 billion deal with China for the financing of the Phase 2B of the Standard Gauge Railway.

Transport Cabinet Secretary James Macharia on Friday announced that the deal will be inked between September 1-4 in China.

The Cabinet Secretary, without divulging details of the financier, said he will lead the Kenyan delegation to the signing ceremony.

Export-Import (EXIM) Bank of China financed the first phase of SGR through concessional and commercial loans to the government.

The CS said the SGR investment is a project that is transforming Kenya's economy.

He spoke at the Association of Architects of Kenya (AAK) annual convention in Mombasa.

"We shall be travelling to China on the first week of September to sign for the SGR phase 2B from Naivasha to Kisumu," Macharia said.

The Naivasha-Kisumu line is expected to put the cost of the whole SGR project at over Sh800 billion.

The Mombasa-Nairobi phase cost Sh327 billion, the extension to Naivasha cost Sh150 billion and the final phase will cost Sh380 billion.

SGR is being built by the China Road and Bridge Corporation (CRBC), who was the contractor for the Mombasa-Nairobi line.

According to government's plan, phase 2B of the SGR project will start at the planned Naivasha Industrial Park where Phase 2A ends.

It will pass through Narok, Bomet, Kericho counties and terminate in Kisumu where a Sh14.3 billion inland port will be put up.

The railway line will have 25 stations including a county station in Kisumu, six intermediate stations, and 18 crossing stations.

Macharia asked the architects and local engineers to position themselves to take up the 40 per cent contracts that will be given to locals.

"The contractor has to make sure 40 per cent of the tenders is given to locals. You can prepare the architectural works for the station," the CS said.

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