A report indicate that the cost of building the Nairobi Expressway has risen higher to Sh87.9 billion, from the Sh65.2 billion initial budget estimate provided by the by the Ministry of Transport.
The highway was to be fully financed by the China Communications Construction Company (CCCC), the parent firm of China Road and Bridge Corporation (CRBC), which is building the highway. It revealed in regulatory filings that the project’s contract value was Sh72.8 billion, an increase of Sh7.6 billion.
Last year, Transport Cabinet Secretary James Macharia explained the cost of the project had risen by the Sh7.6 billion after it emerged that the road linking Jomo Kenyatta International Airport (JKIA) to Westlands would require extra funds.
The government has also spent an extra Sh15.1 billion on the 27-kilometre-long highway, which seeks to decongest traffic on the main artery into Nairobi.
During an interview with the Nation, Mr Macharia said the cost of the project development is fully financed by CCCC. When asked how much the government was contributing to the project, Mr Macharia said Kenya would underwrite the right of way costs in the form of land compensation and transfer of utilities, “which are estimated to cost Sh15.1 billion”.
“The money was used to compensate landlords and owners of utilities that paved the way for the construction of the Nairobi Expressway,” he said.
The funds enabled telecommunications firms, Kenya Power and Nairobi Water and Sewerage Company (NWSC) to move their infrastructure.The project, which is 95 per cent complete, is funded under a public-private partnership, Mr Macharia said.
Source: Nation
