The Kenya Urban Roads authority on Monday, January 23 announced that it had secured a Ksh 3.2 billion concessional loan for the design and construction of the Ngong Road-Naivasha Road interchange.
In a statement seen by Kenyans.co.ke, the roads authority revealed that it had partnered with the Centunion, a Spanish firm.
“KURA has today signed a Ksh. 3.2 billion concessional loan with Centunion of Spain for the design and construction of the Ngong Road-Naivasha Road interchange. The signing was witnessed by CS-Transport, Hon. Kipchumba Murkomen and PS-Roads, Eng. Joseph Mbugua,” the statement read.
Concessional loans are loans that are extended on terms substantially more generous than market loans.
The concessionality is achieved either through interest rates below those available on the market or by grace periods, or a combination of these.
Concessional loans typically have long grace periods.
Centunion is a Spanish general contractor enterprise that uses the most advanced technologies and processes in the design, manufacture, and supply of steel structures, specializing in the execution of steel bridges and viaducts.
In December 2020, Kenya National Highways Authority (KeNHA) contracted the company to construct a four-lane fly-over on Langata Road and several footbridges at a cost of €23,250,000 (Ksh3.13 billion) to ease transportation along the key road.
The Ngong-Naivasha Road Interchange project was initially scheduled for completion in 2019 but that failed to happen after the contractor encountered challenges in moving water and power lines as well as dealing with furniture traders who had invaded the road.
Equally, in December 2022, the principal secretary, Eng. Joseph Mbugua announced that the review of road designs in the country had gathered steam with the 4.2-kilometre Langata Road-Ngong' Road link highway taking priority.
This came on the backdrop of Transport Cabinet Secretary Kipchumba Murkomen announcing on October 2022 that construction of many roads had stalled because contractors were not being paid.
He proposed the introduction of a road maintenance levy to guarantee a one-off infrastructure bond to be used to pay off all contractors.
He further revealed that the ministry has inherited Ksh140 billion in pending bills.
“The reason why the roads have stalled is that we are unable to pay the contractors and the money to pay them is not there. This is because the money has been disbursed the money to other sectors and the problem is that we have a bit more than we can chew,” he disclosed.
Equally, President William Ruto had committed to completing all stalled road projects beginning January 2023.
Ruto clarified that the delay was due to a debt which he stated amounted to Ksh9 00 billion.
“We have stalled road projects because we lack money to work on them. The work needs a new plan and new brains,” he opined.
“My administration intends to introduce new legislation to guarantee the sourcing of funds to ensure all these infrastructural projects are completed,” he added.
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