Verdensbanken belønner Kenyas nye regering med bistand for 1,6 milliarder kr.

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The World Banks Executive Board Thursday approved financing of a 263 million US dollar (20,5 billion Kenya Shillings – 1,6 milliarder DKR) for development projects in the transport, agriculture and water sectors in Kenya.

The funding comprises 207 million dollar for the Northern Corridor Transport Improvement Project, 40 million dollar for the first phase of the Kenya Agricultural Productivity Improvement Project and 15 million dollar for the Nairobi Water and Sewerage Institutional Restructuring Project.

The 15 million dollar for the water sector, as well as slightly more than one-third of the amount for agriculture, are non-repayable grants. The balance of the funds are repayable over 40 years, which includes a 10-year grace period, at a nominal administration fee of 0,75 per cent.

Since the financing is being provided by the International Development Association (IDA), the World Banks arm that provides project finance at concessionary rates to developing countries, the funds attract no interest.

World Bank Kenya Country Director, Makhtar Diop, said: – This assistance reflects the Banks new engagement with the Kenyan government and is particularly important because it is being channeled to strategically significant economic sectors.
 
– The project assistance is driven by the priorities of the governments Economic Recovery Strategy and is timely as it comes so soon after presentation of this years Budget, he added.

The bulk of the funds will go to the “Northern Corridor” project, which involves upgrading 373 kilometers of the Mombasa-Uganda highway and the creation of an independent roads monitoring agency.

A sub-component of this project involves upgrading the Jomo Kenyatta and Moi International Airports to international standards which will allow for direct flights from Kenya to any international destination.

An additional element will be used to strengthen the Kenya Civil Aviation Authority and East African School of Aviation, and improve air navigation safety in Kenya.  

– The Northern Corridor project will spur private sector-led economic growth through reducing the cost of doing business in Kenya and increasing the countrys competitiveness in regional markets. Upgrading of the airports is also expected to boost tourism and trade, Diop stated.

The Kenya Agricultural Productivity Improvement Project seeks to rationalize the national agricultural research systems through creation of a National Agricultural Research System, while offering critical support to the Kenya Agriculture Research Institute (KARI).

The program will also expand and reform the provision of agricultural extension services to give farmers better access to cost-effective agricultural technologies.

The grant for the water sector will help build an effective governance and institutional structure for the provision of water and sewerage services to the population of Nairobi. This will involve strengthening of the newly-created Nairobi City Water and Sewerage Company (NWSC) and of the Nairobi Water Services Board (NWSB), the autonomous entity that supervises the performance of the NWSC.

Diop said that a portion of this grant will be used to design the framework for much larger programs in Nairobi and Mombasa, which will include providing water and sanitation services to low-income urban settlements. 

– We now look forward to expeditious implementation of these projects, so that wananchi can obtain the benefits outlined in the governments Economic Recovery Strategy, Diop added.
 

For further information on World Bank programs in Kenya visit
www.worldbank.org/ke
 
Kilde: www.worldbank.org