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Japan inks 275 mln USD loan deal to help Kenya expand port

Xinhua, January 17, 2015 Adjust font size:

Kenya and Japan on Friday signed a 275 million U.S. dollar loan to fund the second phase of Mombasa port expansion.

National Treasury Cabinet Secretary Henry Rotich said the loan will fund the development of the port expansion project that includes the construction of the new container terminal at berth Number 22.

"The ongoing funding is a clear testimony of Japanese government's support of our infrastructure sector, whose completion will provide handling equipment to facilitate trade and economic development in Kenya and entire region," said Rotich when he signed the deal in Mombasa.

Japanese Ambassador to Kenya Tatsushi Terada said the project will enhance container handling capacity at the port, noting that his government is committed to helping Kenya implement the port development projects.

"Mombasa port being gateway city of the rapidly growing East African economy, this project upon completion will benefit not only Kenya but the entire region," said Terada.

"This will the biggest single Overseas Development Assistance (ODA) project in Japan's history of economic cooperation to Kenya, " the official said.

Mombasa port is the second largest in Africa in terms of tonnage and the containers handled per year with an average of 1, 700 ships docking at the facility annually.

Transport and Infrastructure Cabinet Secretary Michael Kamau said Phase II of the second container terminal involves the construction of berth number 22 with length of 250 metres and 15 metres deep. He said once the terminal is complete it will provide an additional capacity of 400,000 Total Equivalent Units (TEUs).

Kamau said the first phase was also funded by the Japanese government at a cost of 270 million dollars in November 2007.

"The objective of this program is to expand cargo handling capacity of the port, improve efficiency and make the port play more catalytic role in facilitating economic development in the region," said Kamau.

In 2013, the port handled 22.3 million tonnes of cargo, up from 21.9 handled in 2012; while in 2014 it handled a throughput of 24. 7 million tones, utilizing in excess of 90 percent of port capacity. Endi