Cabinet approves Sh16bn city commuter railway plan
What you need to know:
- Cabinet approved the $200 million (Sh16 billion) NCR among other 47 flagship public private partnership (PPP) projects.
- Once completed, the NCR is expected to interlink all sections of the city in a network that converges at the city’s central business district, driving out low-capacity vehicles that cause traffic jam.
- The dedicated lines will connect satellite towns of Kitengela, Thika, Kikuyu and Rongai.
The Cabinet has cleared Nairobi Commuter Rail (NCR) for private financing, putting on track a grand project seeking to end the city’s transport snarl-up.
At its last weekly meeting, the Cabinet approved the $200 million (Sh16 billion) NCR among other 47 flagship public private partnership (PPP) projects.
“The passage of the Public Private Partnership Act, 2013 paved the way for participation of the private sector in infrastructure development,” the Cabinet brief issued last Thursday reads in part.
The Cabinet approved a total of 47 projects for development under the PPP programme including the100km-Nairobi rail commuter services.
Once completed, the NCR is expected to interlink all sections of the city in a network that converges at the city’s central business district, driving out low-capacity vehicles that cause traffic jam.
The dedicated lines will connect satellite towns of Kitengela, Thika, Kikuyu and Rongai.
According to Kenya National Bureau of Statistics, Nairobi loses Sh50 million daily due to traffic jams. Just like the Kenya National Highways Authority has lined up major flagship projects to decongest the City, the Kenya Railways Corporation (KRC) has placed its bet on NCR.
Apart from the Syokimau Station launched last year, the grand plan envisages three new railway stations at Makadara Estate on Jogoo Road, Mombasa Road’s Imara Daima and Moi Avenue.
Kenya Railway acting CEO Alfred Matheka was said to be locked in a meeting throughout the day when the Business Daily sought his comments, but his public relations officers said the Cabinet’s decision came at the right time to address a major hurdle to other phases of the project.
The KRC officials have frequently cited financing as a major handicap to the project launched with much fanfare in November last year.
Due to slow release of funds from public coffers, Kenya Railways has only managed to complete four out of the 26 modern commuter stations lined up for construction in the first phase of the project.
The approval by Cabinet now opens up the project to be built and be initially operated by private sector as state provides policy guideline.
While there has been a general apprehension over the planned switch to pay-for-use public assets, officials see the new PPP engagement as representing a new era in service provision.
This article first appeared on Businessdailyafrica.com
