African Development Bank puts $40m into East Africa’s railway

The African Development Bank (AfDB) has committed $40 million to support a five-year capital investment programme for the Rift Valley Railways, a consortium established to manage the parastatal railways of Kenya and Uganda, says officials of the Bank.

The AfDB’s funding is part of a $165 million long-term foreign currency-lending programme which was signed with the Rift Valley Railways, senior officials of the governments of Kenya and Uganda and representatives of the various lending parties in Nairobi August 4, 2011.

“The AfDB financing will be used to rehabilitate, operate on and maintain a regional railway concession and related facilities in Kenya and Uganda. The Rail network runs from Mombasa Port in Kenya to the Ugandan capital in Kampala, with a branch to Pakwach in northeastern Uganda,” said a statement from the Bank.

If completed, the project will establish an efficient, reliable and integrated rail system in Kenya and Uganda and will lead to reduced transit times as well as increase rail market share of the freight transport requirement.

Rift Valley Railways Investments owns 100% of Rift Valley Railways Kenya and 100% of Rift Valley Railways Uganda, which are registered in Kenya and Uganda respectively, it said.

By Ekow Quandzie