Chinese firm, Kenya sign deal to extend high-speed railwayes

A train pulls into a station in Luoyang city, Henan province, June 30, 2015.

 NAIROBI - Kenya and China Communications Construction Company (CCCC) has signed anagreement for the construction of the Standard Gauge Railway (SGR) line from Naivasha innorthwest Kenya to Malaba in western Kenya.

A statement from the Kenya Railways Corporation (KRC) received on Tuesday said the Chinesefirm will develop Naivasha-Kisumu/Malaba SGR project, Kisumu Port and the Inland ContainerDepot at a total cost ofes $5.3 billion.

"The government has secured a loan from Chinese government to support the development ofPhase 2A (Nairobi-Naivasha) and construction will commence in 2016. The total contract pricefor this section is $1.5 billion," Kenya Railways said.

The Commercial Contract for the construction of Phase 2A of the Nairobi - Naivasha SGR wassigned by CCCC ines September 2015.

China agreed to fund the first phase of a standard gauge railway line linking the East Africannation's port city of Mombasa to Uganda, Burundi and South Sudan.

Kenya Railways said the four commercial contracts for the development of the four elements ofthe project include Naivasha-Kisumu, Kisumu-Malaba, Kisumu Port Development andModernisation andes expansion of the Inland Container Depot at Embakasi in Nairobi.

"The signing of these contracts valued at $5.3 billion marks yet another significant milestoneregarding the Kenya-China cooperation for the mutual benefit of the peoples of the twocountries," it said.

The railway firm said Kenya recognizes the task of developing and efficiently running thees projectis not a walk in the park and has initiated a training programme to build capacity and equipKenyans with the necessary skills required to build the rest of the network and subsequentlyoperate it efficiently.

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