PANAPRESS
Panafrican News Agency
AfDB approves US$ 232.5m loan to reinforce regional integration in EAC
Addis Ababa, Ethiopia (PANA) - The African Development Bank (AfDB) has approved two loans, totalling US$ 232.5 million, for the construction of two important roads aimed at reducing the cost of transportation and enhancing access to agricultural inputs, larger markets and social services within the East Africa Community.
From this facility, Kenya will receive US$ 113.12 million while Tanzania will be awarded US$ 120 million.
The Bank said that the facility, constituting 89.1 percent of the total project cost, is for the construction of a 157.5-km road from Arusha to Holili in Tanzania, and from Taveta to Voi in Kenya.
The project, due for completion in December 2018, will also receive some funding from Kenya (US$ 15.6 million) and Tanzania (US$ 12.3 million).
In addition, the Africa Trade Fund has extended a US$ 0.74-million grant for a small component for trade facilitation at the Namanga border crossing, bringing to US$ 262.2 million the total cost of the project.
The Arusha-Holili/Taveta-Voi Road is a transport corridor of the East African region that links the Northern Corridor at Voi to the Central Corridor across the common border at Holili/Taveta through Arusha, Babati to Dodoma and Singida.
It is meant to reduce the cost of doing business, increase competitiveness of the region on the global market and at the same time promote regional integration.
According to AfDB, the project will comprise civil works for the construction of a 42.4 km Arusha bypass, dualling the Sakina-Tengeru section (14.1 km) as well as the construction of two roadside amenities at Tengeru, one on either side of the dual carriageway in Tanzania.
It will also involve the upgrading of the 89 km Taveta-Mwatate portion, the construction of a 12 km Taveta bypass and two roadside amenities, one each at Bura and Maktau along the Mwatate-Taveta Road in Kenya.
AfDB’s Regional Director for the East Africa Resource Centre, Gabriel Negatu, said that the road project had been identified in the East African Regional Integration Strategy Paper (RISP 2011-2015) and the East African Transport Strategy and Regional Road Sector Development Programme of November 2011 as a priority for intervention.
“The East African Community seeks to improve regional transport infrastructure to support economic and social development programmes in the region, promote tourism and foster regional integration and at the same time reduce the cost of doing business by supporting cross-border and international trade,” Negatu said.
For Tanzania, the Second National Strategy for Growth and Reduction of Poverty, popularly known by its Kiswahili acronym as MKUKUTA II, has the target of raising the growth of the transport sector to 9.0 percent by 2015.
For Kenya, the upgrading of the Voi-Taveta road falls within Pillar I of Vision 2030, the basis for socio-economic transformation
-0- PANA AR/VAO 18April2013
From this facility, Kenya will receive US$ 113.12 million while Tanzania will be awarded US$ 120 million.
The Bank said that the facility, constituting 89.1 percent of the total project cost, is for the construction of a 157.5-km road from Arusha to Holili in Tanzania, and from Taveta to Voi in Kenya.
The project, due for completion in December 2018, will also receive some funding from Kenya (US$ 15.6 million) and Tanzania (US$ 12.3 million).
In addition, the Africa Trade Fund has extended a US$ 0.74-million grant for a small component for trade facilitation at the Namanga border crossing, bringing to US$ 262.2 million the total cost of the project.
The Arusha-Holili/Taveta-Voi Road is a transport corridor of the East African region that links the Northern Corridor at Voi to the Central Corridor across the common border at Holili/Taveta through Arusha, Babati to Dodoma and Singida.
It is meant to reduce the cost of doing business, increase competitiveness of the region on the global market and at the same time promote regional integration.
According to AfDB, the project will comprise civil works for the construction of a 42.4 km Arusha bypass, dualling the Sakina-Tengeru section (14.1 km) as well as the construction of two roadside amenities at Tengeru, one on either side of the dual carriageway in Tanzania.
It will also involve the upgrading of the 89 km Taveta-Mwatate portion, the construction of a 12 km Taveta bypass and two roadside amenities, one each at Bura and Maktau along the Mwatate-Taveta Road in Kenya.
AfDB’s Regional Director for the East Africa Resource Centre, Gabriel Negatu, said that the road project had been identified in the East African Regional Integration Strategy Paper (RISP 2011-2015) and the East African Transport Strategy and Regional Road Sector Development Programme of November 2011 as a priority for intervention.
“The East African Community seeks to improve regional transport infrastructure to support economic and social development programmes in the region, promote tourism and foster regional integration and at the same time reduce the cost of doing business by supporting cross-border and international trade,” Negatu said.
For Tanzania, the Second National Strategy for Growth and Reduction of Poverty, popularly known by its Kiswahili acronym as MKUKUTA II, has the target of raising the growth of the transport sector to 9.0 percent by 2015.
For Kenya, the upgrading of the Voi-Taveta road falls within Pillar I of Vision 2030, the basis for socio-economic transformation
-0- PANA AR/VAO 18April2013
