KENYAN AND BECHTEL TEAMS MEET TO DISCUSS ROAD FINANCING

On Monday 9 July, members of the Bechtel team met with representatives of the Kenyan governments to discuss the financing of the Nairobi-Mombasa highway.

The $3 billion project has experienced some challenges around funding. The government would prefer the 473km road to be financed by Bechtel with costs being recouped via a toll fee. The infrastructure company is suggesting that the government consider debt financing.

The PPP model suggested by the government will cost taxpayers closer to $5 billion over the 25 year period says Bechtel.

The teams are meeting to agree on the financing framework for the project.

Treasury secretary Henry Rotich told the Business Daily: “We will commence detailed discussion on how the financing approach will be undertaken under that project. We will be discussing modalities, financing structuring and the details for us to be clear on how to undertake this project.”