July 5, 2017
On July 4, the Japan International Cooperation Agency (JICA) signed a loan agreement with the Government of the Republic of Kenya in Nairobi, the capital city, to provide a loan of up to 12.466 billion yen for the Mombasa Port Area Road Development Project (II).
The objective of the project is to facilitate logistics around the Mombasa Port area, the gateway to East Africa, by constructing roads to connect the port container terminal to the East African Northern Corridor,* and constructing the Mombasa Southern Bypass to the southern part of the city, thereby contributing to the economic and social development in Kenya and its neighboring East African countries. The loan funds will be allocated to road and bridge public works, and to consulting services (including detailed design work, bidding assistance and construction supervision).
The largest trade port in East Africa and a hub for goods distribution in Kenya and greater East Africa, Mombasa Port has seen its volume of cargo grow rapidly in recent years. To accommodate this growing volume, a new container terminal was completed in February 2016 with support from JICA with a Japanese ODA loan, and the volume of cargo handled at the port has continued to grow. Furthermore, infrastructure planning is underway for the Special Economic Zone in the southern part of Mombasa, which is expected to increase the number of vehicles transporting cargo to and from Mombasa Port.
Moreover, because the port facilities and the transportation infrastructure near the port are currently inadequate, the access roads connecting Mombasa Port with the East African Northern Corridor are in particular constantly congested, hindering the smooth flow of goods. In addition, currently the sole means of travel from central Mombasa to the southern part of the city is a ferry, which hinders the flow of goods to the neighboring country of Tanzania and the development of the southern area.
The project will construct roads and bridges that are expected to reduce the travel time from the north part of Mombasa to the south part from approximately 70 minutes to approximately 15 minutes.
JICA is currently implementing the ’’Project for Strengthening of Capacity on Road Maintenance Management through Contracting (Phase 3)’’ (2016–2019), technical cooperation, in Kenya, and it is expected that the standard bidding documents for contractor contracts and other project elements created with assistance from the technical cooperation will be used in road operation and maintenance after the project is complete.
For the project, a Japanese ODA loan (signed in June 2012 for 27.691 billion yen) was provided for the first stage of this project, and this loan is additional financing.
* The international economic corridor that boasts the greatest transportation volume in East Africa. With Mombasa Port as the gateway, the East African Northern Corridor passes through Nairobi, the capital city of Kenya, to Kampala, the capital city of Uganda, and then to Rwanda and Burundi.
1. Terms and Amount of Loan
|Project title||Amount (million yen)||Annual interest rate (%)||Repayment
|Mombasa Port Area Road Development Project (II)||12,466||1.20||0.01||30||10||General untied|
2. Executing Agency
Kenya National Highways Authority
Address: Blueshield Towers, Hospital Road, Upper Hill, P.O. Box 49712-00100, Nairobi, Kenya
Phone: +254-(0)20-2989000, fax: N/A
3. Planned Implementation Schedule
(1) Issuing of letters of invitation for consulting services (including detailed design work): Consultants have already been hired
(2) Tender announcement of initial procurement package for international competitive bidding on project construction: Already contracted