The World Bank's board has approved a grant worth US$60 million
to Uganda and Kenya for concessioning of the railways, local press
reported in Kampala on Wednesday.
"The International Development Association (IDA) Partial Risk
Guarantees (PRG) of US$45 million and US$15 million respectively
were approved in support of the railways' concession in Kenya and
Uganda.
It is being concessioned to the Kenyan and Ugandan subsidiaries
of Rift Valley Railways Holdings, whose lead investor is a South
African company," according to a statement from the World Bank.
The South African firm has made a plan to invest 80 million
dollars within five years for the railway line from Kenya's Mombasa
port to Uganda's capital of Kampala after winning of the 25-year
concession of the railways last year.
The statement pointed out that the grant will be the first
timefor IDA to provide PRGs for a transport project.
The project is among the first ones in which several instruments
of the World Bank like IDA credits, IDA PRGs and International
Finance Corporation's (IFC) advisory services have been utilized in
a complementary manner.
The statement said the IFC's infrastructure department would
also consider debt financing for the investment program of the
concessionaire for development of the railways.
Meanwhile, the Ugandan government needs US$350 million to extend
the railway line to southern Sudan and the Democratic Republic of
the Congo, according to a report from the presidential investors
round table committee on infrastructure.
The government also requires US$50 million for rehabilitation
and upgrading of the 333 km Kampala-Kasese line from the capital
city to western part of the country.??
?
(Xinhua News Agency Febuary 1, 2006)
