China’s Exim Bank may Fund Kenya – Uganda Rail Link Project

China’s Exim Bank has expressed interest in financing the third section of Kenya’s planned rail link with Uganda at an estimated cost of $4.9 billion, a senior Kenya Railways official said on Friday.

China’s Exim Bank may Fund Kenya – Uganda Rail Link Project
December 4, 2016 8:41 am

China Exim Bank is already financing the first phase of the railway, from the Kenyan port of Mombasa to the capital Nairobi. Solomon Ouna, the railway’s project advisor, said that section is 98 percent complete and will start commercial operations in January 2018.

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Kenya’s rail link with landlocked Uganda is expected to lower transport costs and boost trade. The first phase, covering 472 km, will cost $3.8 billion and cut the journey between Nairobi and Mombasa to four and a half hours from 13 hours or more currently.

Kenya signed an agreement in March with China Communications Construction Company (CCCC) to extend the railway to the town of Malaba on the Ugandan border. However, financing was not part of the deal.

“China Exim Bank has expressed an intention to finance this,” Atanas Maina, Kenya Railways managing director, told a news conference.

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“From the Kenya Railways side, we have finalised the commercial agreement and we believe that in the course of next year, we may be able to close the financing of that particular section.”


[/quote]The 370 kilometer (230 mile) third section, which will include a branch to the Kenyan town of Kisumu next to Lake Victoria, will cost $4.9 billion to construct and supply with locomotives and rolling stock, Kenya Railways said.

In October, Kenya Railways launched construction of the second phase of the railway, a $1.5 billion 120 km section linking Nairobi to the Rift Valley town of Naivasha.

China Export-Import Bank is a policy bank owned by the Chinese government. China has replaced the United States and Europe as the main trading partner for many African nations and is a big investor in infrastructure projects on the continent. is a railway information and news platform. Website presents from all around the world railway sector news, developments, projects and tender for the sector specialists. Railwaynews supports to industry events and announced them for potential participants. Railwaynews plans to collecting data from all around the world, about railway infrastructure, rolling stock, railway transportation datum, geographical datum to present for railway professionals for short term. Railwaynews will build new platforms aims to high value railway business environment for all railway specialists, railway fans and especially railway suppliers and their decision makers. Railwaynews presents whole information from rail professionals to rail professionals.

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