World Bank Group commits Ksh.39 billion for Nairobi-Nakuru Toll Highway
The World Bank's private sector financing arm- the International Finance Corporation (IFC) is set to approve the disbursement of the funds within the 2023/24 financing year, unlocking more financing for the Public-Private Partnership (PPP) initiated project.
On its part, the World Bank is expected to provide guarantees to the project alongside the Multilateral Investment Guarantee Agency (MIGA).
The project, which is also known as the Nairobi-Nakuru-Mau Summit Highway, is set to be among the first road projects in Kenya developed under the PPP framework.
The World Bank Group has listed the project as one of the key deliverables, underpinning its engagement with the country under the Country Partnership Framework for Kenya (CPF).
The framework will also see the IFC scale up its investments in the country as part of the wider World Bank Group support for fiscal and debt sustainability.
The project involves the dualling of a portion of the A8 Highway between Rironi and Mau Summit into a four-lane dual carriage including operation and maintenance.
The project will also cover the strengthening of A8-South Highway between Rironi and Naivasha.
Rift Valley Highway Limited (RVHL), a consortium led by Vinci Highways and Meridian, are the project’s operator.
The firm has already signed a design, build, finance, operate, maintain and transfer contract with the Kenya National Highways Authority (KeNHA).
Kenyans will be expected to pay road tolls over an estimated period of 30 years in a bid to help the project’s operator and financiers recover their investment.
Earlier this year, the African Development Bank (AfDB) approved the financing of Ksh.18.4 billion ($150 million) to Kenya to support the financing of the toll Highway.
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