KeNHA: Mombasa-Nairobi Expressway project to take 5 years

In a statement issued by the Authority on Friday, KeNHA said that the construction of the 473-kilometre highway would take five years beginning from the time of its commencement.

This, KeNHA explained, would be after the government had deliberated on the terms of its construction- from planning, cost and implementation of the whole project.

“The construction of the project will likely take 5 years to complete and work will commence upon completion of studies, designs, negotiation and closure of all financing arrangements,” read the statement.

The agency went on to dismiss recent media reports that said the government had replaced a US contractor; Bechtel Engineering which had initially secured the tender with a Korean firm, Korean Overseas Infrastructure and Development Corporation (KIND).

KeNHA pointed out that Kenya was yet to award the contract to any of the aforementioned contractors and was still in the renegotiation process.

“The Contract for construction of the Mombasa-Nairobi Highway has not yet been awarded to any entity. KIND presented a Pre-Feasibility Studies Report for the development of the Highway based on a PPP model on 29th July 2022, and they are open to submitting a Privately Initiated Investment Proposal (PIIP) in line with the requirements under PPP Act, 2021,” KeNHA noted.

“Bechtel is still working on its best Public Private Partnership (PPP) structure for the project. A US Capital Investment Company (Everstrong Capital) has also expressed interest in developing the Corridor in partnership with Bechtel.”

In regard to where the funds for the project would come from, KeNHa stated that the government would determine after all the processes are determined.

“The scope of works and source of financing will be determined once all studies and the necessary arrangements are concluded,” noted KeNHA.

According to the report in July, KIND had been awarded the project after America’s Bechtelturned down the government’s financing model proposal of a toll fee business model where it would source funding and then recoup its cost through toll fees.

Bechtel argued that the PPP model would see the cost which it estimated at Ksh. 318.25 billion inflated to Ksh 1.6 trillion due to interests incurred in borrowing.

“Our approach will always set out to minimize building costs and pursue the fiscally responsible option,” the firm’s spokesperson Aileen Easton was quoted by Engineering News-Record.

“We are committed to providing the best possible value of money for the Kenyan people.”