AfDB approves $232.5m for East African integration road project

The African Development Bank April 17, 2013 confirmed the approval of two loans totalling $232.5 million for a road project between Tanzania and Kenya.

The 157.5-kilometre road project starts from Arusha to Holili in Tanzania, and Taveta to Voi in Kenya. It is an effort to reduce the cost of transport and enhance access to agricultural inputs, larger markets and social services within the East Africa Community.

Kenya will receive $113.12 million of the two loans approved by the AfDB Board, while Tanzania will be awarded $120 million, according to the AfDB.

The Bank facility constitutes 89.1% of the total project cost, AfDB said in a statement.

The project, which officials say, is expected to be completed by December 2018, is also jointly financed by the Governments of Kenya and Tanzania both contributing $15.6 million and $12.3 million respectively.

The Africa Trade Fund has also provided a $740,000 grant for a small component for trade facilitation at the Namanga border, bringing to $262.2 million the total cost of the project.

AfDB’s Regional Director for the East Africa Resource Centre, Gabriel Negatu said that the Kenya-Tanzania road had been identified in the East African Regional Integration Strategy Paper (RISP 2011-2015) and the East African Transport Strategy and Regional Road Sector Development Programme of November 2011 as a priority for intervention.

By Ekow Quandzie