AfDB Board approves Usd 120 million financing for Nairobi road project

*Project to take 4 years; starting 2014; Complete road will reduce travel
time from 45 to 15 minutes*

NAIROBI, Kenya, November 19, 2013/ *– *The Board of the African
Development Bank (http://www.afdb.org) on Wednesday November 13th approved
US$120 million financing for the Nairobi Outer Ring road project which
involves the improvement of the existing single carriageway road to a
2-lane dual carriageway complete with service roads, grade separated
intersections, pedestrians–foot-over bridges, walkways and cycle tracks
over the entire length of the road.

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The 13-kilometer project, on completion is expected to directly enhance the
traffic circulation and eliminate traffic bottlenecks to various economic
activity centers such as the industrial zone, and the vast populous
residential areas of Eastlands.

AfDB Regional Director for Eastern Africa, Mr. Gabriel Negatu confirmed the
financing as a mix of grant and loan from the Africa Development Fund
(ADF), with the Government of Kenya as the counterpart financier of the
project whose total cost in US$130million.

“The Africa Development Bank Group will provide 89.8% financing for the
total project through Africa Development Fund (ADF) loan of US$115.9million
and a grant of US$5million. We believe that this road will not only reduce
the travel time from the current 45 minutes to 15 minutes, but will also
transform the socio-economic welfare of the people living along the
transport corridor,” the Director said.

The road traverses Nairobi’s East and North districts serving an estimated
population of at least 2.2 million representing some 70% of the Nairobi
County population. Other beneficiaries include users of major city
connecting arterial roads of: Nairobi-Thika highway, Eastern Bypass,
Northern Bypass, Mombasa Road, and onto the Jomo Kenyatta International
Airport (JKIA).

Negatu pointed out that the key outcomes of the project will include
improved property values arising from reduced congestion, and improved
business environment for informal traders owing to access to new market
facilities and improved sanitation.

Other complementary civil works elements include: 250 market stalls and
associated sanitary facilities, planting of 4,500 trees along the corridor,
children’s traffic safety park, and 3 Wellness centers for HIV/AIDs and
related illnesses.

It is further estimated that by improving the existing road, the annual
vehicular GHG emission rates in tones in the corridor would drop by at
least 70% due to improved average traffic operating speeds along the
project corridor particularly, with the integration of the Bus Rapid
Transit System as envisaged by the year 2022.

“Our approach to this and every project that we have undertaken is guided
by our commitment as a Bank to realize inclusive and green growth in
Africa. Under this project, at least 500 disadvantaged youth from the
informal settlements will gain from artisan training program aimed at
enhancing their skills to assure long-term gainful employment thereafter.”
Negatu added.

The Africa Development Bank previously financed the successful completion
of the 50km Thika Superhighway, which was jointly financed by the Republic
of China and Government of Kenya. Outer Ring Road project brings to 63 the
kilometers of roads financed by the Bank within the Nairobi metropolitan.