Posted on :Tuesday , 23rd August 2022
Korean Overseas Infrastructure and Urban Development Corporation Africa has been given the job of building the Nairobi-Mombasa Expressway in Kenya (KIND). Following the withdrawal of US contractor Bechtel Corp from the project, the East African nation selected KIND to build the 473-km road.
The Kenyan government has already received a feasibility report for the project from the South Korean company. Furthermore, it has consented to proceed with the high-speed highway project using a toll charge revenue model that Bechtel just rejected.
Bechtel agreed to an Sh230 billion contract for the Nairobi-Mombasa Expressway project in August 2017. This opened the door for the US export credit agencies to mobilise funds. Kenya, however, reneged on the agreement a year later.
According to reports, the government of the East African nation ordered Bechtel to fund the highway's construction with its own funds and levy tolls to recoup its investment. On the other hand, the American company turned down the offer. According to the report, the Public Private Partnership (PPP) model will raise the project's cost to almost Sh1.5 trillion.