The Kenya Urban Roads Authority (KURA) has revealed that the newly completed Ksh3.8 billion Ngong-Naivasha Road Flyover was funded through a government-to-government loan from Spain.

🇰🇪 Breaking It Down

KURA Director General Silas Kinoti said the 820-metre project, which includes a 250-metre bridge, was financed through a soft loan carrying a low interest rate.

“This was done through a soft loan from the government of Spain, which we call government-to-government lending. A very soft loan, I think we have an interest of almost zero point something per cent,” he stated.

According to Kinoti, the loan has a grace period of more than 10 years and a repayment period of nearly 40 years.

📌 What You Need to Know

A past KURA report obtained by this publication indicated that the project was financed through a concessional loan of Ksh3.58 billion (€25.3 million) from the Corporate Internationalisation Fund (FIEM), a Spanish state fund established to support the international expansion of Spanish businesses.

During the commissioning of the flyover on June 29, President William Ruto credited the partnership between Kenya and Spain, thanking the Spanish government for its support in financing the project.

The flyover was also constructed by a Spanish Engineering, Procurement and Construction (EPC) firm, Centunion, which completed the project in 22.5 months, instead of the original 36-month timeline.

According to Project Manager Pablo Acosta, the project financing helped accelerate its completion, as it enabled the contractor to mobilise resources quickly, alongside support from KURA and the Kenyan government.

“We were able to finish ahead of schedule because of the cash flow. We were able to finance the project and raise the money very fast,” he said.

Acosta said Centunion has operated in Kenya for the past decade, successfully completing six infrastructure projects in the country, including the T-Mall Flyover along Lang’ata Road.

📰 Source: Kenyans.co.ke