The National Treasury signed an agreement with South Korea which will allow the country to access funds to develop its finance development projects. Part of the agreement includes a loan worth Ksh 6.38 ($59 million) which will establish five BRT lines for Outer Ring Road, linking the Eastern Bypass to the Thika Superhighway.
Construction of the BRT lanes will be funded by a loan from the South Korean Export Import bank.
The Outer Ring Road project is part of an agreement between Kenya and South Korea for 2018 to 2020, which includes loans from the Economic Development Cooperation Fund (EDCF) for development projects.
Treasury CS Ukur Yattani says the agreement will allow the country to access funds for the projects and that the government will identify other priority projects and fund them under the agreement.
“We wish to inform you that the negotiations for the above three projects are at different stages and shall expedite the process to conclude them and also identify other priority projects to be funded under this Arrangement,” he says.
Apart from modification of the Outer Ring Road, the fund will also finance the establishment and improvement of the Nairobi Intelligent Traffic Systems which will place in two phases. Phase one of the project will cost Ksh 6.6 billion while the second one will Ksh 10.8 billion, which will improve traffic management.