News / Africa

Kenya Secures Funds for $650M Airport Expansion

Fire at the Jomo Kenyatta International Airport in Nairobi, Kenya, on Aug. 7, 2013, destroyed the arrivals terminal.
Fire at the Jomo Kenyatta International Airport in Nairobi, Kenya, on Aug. 7, 2013, destroyed the arrivals terminal.
Reuters
— Kenya's airport authority has received full funding offers from three banks to build a new terminal and second runway at its main airport, hit by a massive fire last month, that will cost $653 million, the transport minister said on Wednesday.

The plans to expand the aging airport, a regional gateway for passengers and cargo, are not new but the authorities have come under pressure to speed up the expansion after the blaze destroyed the arrivals terminal.

The new terminal and runway will provide a further capacity of 40 million passengers, Transport Secretary Michael Kamau said, seen by government as necessary to cope with the anticipated boost to the economy the expected exploitation of oil reserves will bring.

Speaking to Reuters on the sidelines of a conference on the country's economy in Nairobi, Kamau declined to say which banks had offered funds to the Kenya Airports Authority, a parastatal.

He did, however, say the lenders would not require a government guarantee, suggesting the lenders are confident they can recoup their money on the project expected to get under way this year.

The old arrival hall remains a charred shell and the airports authority is relying on a makeshift terminal made out of giant tents to handle arriving passengers.

Even before the fire, Nairobi's Jomo Kenyatta International Airport, built in the 1970s to handle 2.5 million passengers annually, was struggling to handle more than 6 million people a year as its regional importance grew.

“The discovery of oil is a game changer in this country. I don't think people are sufficiently prepared for what is coming,” Kamau said.

National carrier Kenya Airways has been blaming lack of capacity for delays to expand operations. The carrier, which is partly owned by AirFrance KLM, plans to more than double its fleet to more than 80 planes in five years.

Like most other sub-Saharan Africa nations, Kenya suffers a massive infrastructure deficit, holding back its economic growth potential.

There are signs a mega-port project on the north Kenyan coast may be gaining traction based on the commercial oil discoveries in Uganda and Kenya.

Kamau said a feasibility study into an oil pipeline linking South Sudan's oil fields to the Lamu port scheme had been completed.

“There are three companies that are willing to fund it with guarantees from oil revenues,” he said, without offering details.

You May Like

University of Michigan Wins Solar Car Race

Squad guided its student-designed solar-powered vehicle to fifth consecutive time victory in eight-day bi-annual American Solar Challenge More

Nigerian Islamic School Tries to Combat Boko Haram

Kaduna school headmaster teaches his students that what militants are doing is are doing is 'a total misunderstanding of the Islamic religion' More

University Trains Students to Advocate for Deaf People Worldwide

Program prepares graduates to advocate internationally for access to education, jobs for people with disabilities More

This forum has been closed.
Comments
     
There are no comments in this forum. Be first and add one

Featured Videos

Your JavaScript is turned off or you have an old version of Adobe's Flash Player. Get the latest Flash player.
Vietnamese Staging Chinese Product Boycott After Oil Rig Spati
X
Reasey Poch
July 28, 2014 7:18 PM
China recently pulled an oil rig from an area of the disputed South China Sea that Vietnam also claims. Despite the action, the incident has had a lingering effect on consumers in Vietnam. VOA's Reasey Poch reports from Hanoi on an effort to boycott Chinese products.
Video

Video Vietnamese Staging Chinese Product Boycott After Oil Rig Spat

China recently pulled an oil rig from an area of the disputed South China Sea that Vietnam also claims. Despite the action, the incident has had a lingering effect on consumers in Vietnam. VOA's Reasey Poch reports from Hanoi on an effort to boycott Chinese products.
Video

Video ESA Spacecraft to Land on a Comet

After a long flight through deep space, a European Space Agency probe is finally approaching its target -- a comet millions of kilometers away from earth. Scientists say the mission may lead to some startling discoveries about the origins of the water on earth. VOA’s George Putic has more.
Video

Video Young Africans Arrive in US for Leadership Program

President Barack Obama's Young African Leadership Initiative has brought hundreds of young Africans to the United States for a six-week program aimed at building their knowledge and skills in fields such as public administration and business. Out of the 50,000 young Africans who applied for the program, just one percent was accepted. VOA's Laurel Bowman caught up with some of those who made the cut and has this report.
Video

Video In Honduras, Amnesty Rumors Fuel US Migration Surges

False rumors in Central America are fueling the current surge of undocumented young people being apprehended at the U.S. border. The inaccurate claims suggest the U.S. will give amnesty to young migrants from the region. As VOA's Brian Padden reports from Honduras, these rumors trace back to President Obama's 2012 executive order to halt deportations for some young undocumented immigrants already living in the United States.
Video

Video Students in Business for Themselves

They're only high school students, but they are making accessories for shoes, fabricating backpacks and doing product photography - all through their own businesses. It's the result of a partnership between a non-profit organization that teaches entrepreneurship and their schools. VOA's Mike O'Sullivan and Deyane Moses met the budding entrepreneurs near Los Angeles.
Video

Video Astronauts Train in Underwater Lab

In the world’s only underwater laboratory, four U.S. astronauts train for a planned visit to an asteroid. The lab - called Aquarius- is located five kilometers off Key Largo, in southern Florida. Living in close quarters and making excursions only into the surrounding ocean, they try to simulate the daily routine of a crew that will someday travel to collect samples of a rock orbiting far away from earth. VOA’s George Putic has more.

AppleAndroid