Kenya hires Korean company for Nairobi Mombasa Highway PPP project

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Kenya National Highways Authority has hired Korean Overseas Infrastructure and Urban Development Corporation Africa (KIND) to build 473-km Nairobi-Mombasa Highway after US contractor Bechtel left the project over financing terms.

KIND has recently presented a feasibility study for the project to the Government of Kenya and has agreed to undertake the high-speed highway project on a toll fee business model, rejected by Bechtel.

Bechtel had signed a US$2.3 billion contract for the construction of the highway in August 2017, providing the funding will come from export credit agencies in the US and the UK. In 2018, Kenya asked Bechtel to pay for the construction of the highway with its own funding. Bechtel declined the offer for the project, as the PPP model would inflate the cost of the project five times over budget.


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