The World Bank (WB) has approved additional financing of US$253 million to enable Kenya to complete remaining contracts on the Northern Corridor, a highway that links Nairobi with landlocked neighboring countries.

A statement from the bank's offices in Nairobi said the funds will be used to tarmac the Mau Summit-Kisumu Road section on the Nairobi-Busia Highway.

It will also finance rehabilitation and replacement of infrastructure and public assets damaged during the 2008 post- election crisis.

"These extra resources will enable Kenya to rehabilitate key sections of the northern road corridor between Nairobi and the Ugandan border," said Johannes Zutt, the WB country director for Kenya, following the board's approval on Thursday.

"This road is not just important for western Kenya, but is also a vital trade link for neighboring landlocked countries, including Uganda, Rwanda, Burundi, the eastern Democratic Republic of Congo, and Southern Sudan," he added.

The additional funding for the Northern Corridor Transport Improvement Project (NCTIP) increases the bank's contribution to the project to US$460 million.

The initial funding of 207 million dollars for the project was approved by the WB board in June 2004.

The total cost of the entire project is 960 million dollars, which is being financed by the Kenyan government and the WB.

Other development partners, including the European Investment Bank, the Nordic Development Fund and the French Development Agency are also co-financing the project.

Amid rapid economic growth in the past five years, Kenya experienced high levels of traffic congestion in major cities, including Mombasa and Nairobi.

The northern road corridor has experienced severe bottlenecks that cause transit delays for Kenya and other countries, adding to the cost of doing business throughout the region. Destruction of parts of the transport system during the 2008 post-election violence exacerbated the problems.

The Kenya government said the additional financing will enable it to make critical investments in the roads sector to sustain growth against the backdrop of the current global economic downturn.

"At long last, we can look forward to a world class road to Kisumu in Western Kenya, including an important by-pass, and also have a permanent solution to the frequent flooding of the road near Nyamasaria," said Michael Kamau, the permanent secretary in the Ministry of Roads.

He expressed appreciation of the bank's strong and sustained support to the roads sector.

The key objectives of the Northern Corridor project include increasing the efficiency of road transportation to facilitate trade and regional integration and enhancing aviation safety and security at the Jomo Kenyatta International Airport to meet international standards.

"This project is a landmark for Kenya and its neighbors as it will transform their economies. It will generate employment for thousands, transform the city of Kisumu into a vibrant regional hub and improve the safety and security of the aviation sector, leading to direct flights from the USA to Kenya," said Anil Bhandari, the TTL for the project.

The project, he said, will raise the level of good governance and integrity of the roads sector.

It will also build sustainable institutions for regulation and oversight of the construction industry through modernization of three newly formed roads authorities -- the Kenya Highways, Rural Roads and Urban Roads authorities.

The WB board encouraged the government to continue to deepen the policy and institutional reforms needed to enhance the impact of its development spending and achieve an equitable and prosperous Kenya.

The additional financing is provided on standard terms of the International Development Association (IDA) -- the bank's concessionary lending arm -- with a 40-year period of maturity including a 10-year grace period.

(Xinhua News Agency April 4, 2009)