Ministry to float railway tender afresh

Transport Committee Chairman Maina Kamanda. Mr Kamanda said the Government had decided to commence work on the 439-kilometre railway line after leaders learnt that Uganda was at an advanced stage in securing a loan from China’s Exim Bank to construct the Malaba-Kampala section. FILE PHOTO | BILLY MUTAI | NATION MEDIA GROUP

What you need to know:

  • He said technical discussions were going on between government officials and representatives of the China Communications Construction Company.

A tender for a consultant to undertake feasibility studies for the third phase of the Standard Gauge Railway extending from Nairobi to Malaba will be floated afresh, MPs heard Thursday.

Transport Committee Chairman Maina Kamanda said there were complaints after it emerged that a boardroom deal to award the multi-billion-shilling consultancy to the same contractor who won the tender for the first phase, from Nairobi to Mombasa, was in the way.

He spoke when the committee met Kenya Railways Managing Director Atanas Maina.

Mr Kamanda said that the Government had decided to commence work on the 439-kilometre railway line after leaders learnt that Uganda was at an advanced stage in securing a loan from China’s Exim Bank to construct the Malaba-Kampala section.

He said technical discussions were going on between government officials and representatives of the China Communications Construction Company, after which internal approvals would be sought and the tender advertised.

A subsidiary of the CCCC, China Road and Bridge Corporation, is undertaking the construction of the Nairobi-Mombasa stretch, and will undertake the second phase once it is approved, since the firm also acts as a financial negotiator for loans from Chinese banks.

The same Chinese company has secured funding for the 120-kilometre Nairobi to Naivasha stretch.

Eighty-five per cent of the funding will come from Exim Bank, through a concessionary loan.