WORLD BANK SIGNS LOAN DEAL FOR AIRPORT CONSTRUCTION
(Posted 28th March 2014)
News that the World Bank has signed a major loan deal with the Kenya government worth 17.5 billion Kenya Shillings, all due to be channeled into the reconstruction and expansion of facilities at the region’s main airport, Jomo Kenyatta International, will be received with some relief by the aviation fraternity currently working under difficult conditions at the airport since the fire last year in August destroyed the entire arrivals section.
The World Bank’s country director yesterday confirmed that the deal was signed, which should allow the Kenya Airport Authority to fast track tender awards now that funds have been made available.
No details about the grace period, the level of interest or the repayment period could be obtained but it is thought that the interest rates will be hugely preferential over any form of commercial borrowing or even project finance arranged by contractors.
KAA has a few weeks ago tendered for the demolition of the entire arrivals complex to pave the way for a major new construction, and while no details have been made public how long it may take to announce the winning bidder and then get working, it is widely anticipated that by mid of this year work will have started.
Meanwhile though was the construction of a temporary terminal building, made of largely prefabricated elements, awarded to a German company and completion of that project is expected by latest October this year. JKIA presently processes nearly 7 million passengers per year, even though the initial capacity on opening in 1978 was only projected to reach 2.5 million passengers, one reason why passengers regularly complain about the congestion and lack of sufficient facilities when flying from or transiting via Nairobi.
