The Chinese EXIM Bank will finance construction of the Standard Gauge Railway connecting three East African countries with South Sudan, the presidential advisor on Economic Affairs has said.
The Protocol was signed by Kenya, Uganda, South Sudan and Rwanda 4 years ago.
“The partner states within the corridor have already approached the Chinese government and the okay is given,” said Aggrey Tisa Sabuni.
Kenya, which is the starting point of the rail line – began the construction last year in May and has connected already its coastal city of Mombasa to Nairobi – now progressing towards Naivasha.
The 14th Northern Corridor Projects summit held in Nairobi asked the governments of South Sudan, Uganda and Burundi to raise $15.5b to develop their respective SGR lines.
“Each partner state will have to identify a means of repaying the loan it is taking. For example for South Sudan, it may pledge part of its oil if so desired,” he added.
The overall objective of the project is to jointly develop and operate a modern, fast, reliable, efficient and high capacity railway transport system in the region.
This, among other objectives, is to expedite economic growth and development of the parties by reducing the cost of doing business and increase the region’s competitiveness.