China-Kenya sign US$ 5 billion funding agreement for development projects

Kenyan President Uhuru Kenyatta, right, and his Chinese counterpart Xi Jinping, shake hands during a signing ceremony at the Great Hall of the People in Beijing, China, Monday, Aug. 19, 2013. (Photo : AP Photo/How Hwee Young, Pool)

The state visit to China by Kenyan President Uhuru Kenyatta has effectively helped unlock billions of dollars to finance several Vision 2030 Flagship projects, officials said on Tuesday.

The Vision 2030 Delivery Secretariat (VDS) Director General Mugo Kibati said the funding commitments extended by the Chinese government and related development agencies have provided a new lease of life for Vision 2030 flagship projects that have been lagging behind in their development schedule due to lack of crucial funding.

“The Vision Delivery Secretariat, notes with pride that the signing of these funding agreements will provide a new lease of life to some flagship projects including the new Mombasa-Nairobi- Malaba Standard Gauge rail project,” Kibati said in a statement issued in Nairobi.

The new funding and technical support agreements, he pointed out, have also opened a window for the attainment of key Vision 2030 goals on schedule.

President Kenyatta is in China with a high-powered delegation that includes Cabinet secretaries in the technical areas like the national treasury, industrialization and enterprise development, energy and petroleum, and environment areas in which Kenya will sign new partnership agreements with China.

China is considered Kenya’s one of the most important bilateral partners.

Kenyan President Uhuru Kenyatta, center left, and his Chinese counterpart Xi Jinping, center right, witness a signing ceremony between Kenyan Foreign Minister Amina Mohamed, second from left, and Chinese Executive Vice Minister of Foreign Affairs Zhang Yesui on an agreement between the two countries at the Great Hall of the People in Beijing, China, Monday, Aug. 19, 2013. (Photo : AP Photo/How Hwee Young, Pool)

The President said his arrival in China was a clear indication of China’s place in Kenya’s economic growth plans.

“As Kenyans very well know, as a country, we have benefitted greatly from Chinese investment especially in infrastructure. The road and transmission lines we are developing have all been as a result of our partnership with China,” Kenyatta said before his arrival in the Asian nation on Sunday.

Kenyatta said Kenya will seek greater cooperation with China in infrastructural development, among other key projects. He singled out construction of the standard-gauge railway line and building of airports as areas that will be given prominence.

“We are really looking forward to our meeting with our counterparts in China. We hope to strengthen the bilateral relations between our countries,” Kenyatta said.

With the signing of the agreements, Kibati disclosed that the Vision Delivery Secretariat’s efforts to ensure a timely implementation of critical flagship projects have received a major boost to facilitate the jump starting of projects yet to commence or behind schedule.

Kenyan President Uhuru Kenyatta, left, talks with Chinese Premier Li Keqiang, right, during their meeting at the Great Hall of the People in Beijing, China , Tuesday, Aug. 20, 2013. (Photo : AP Photo/How Hwee Young, Pool)

Kibati noted that the bilateral signing of funding agreements amounting to about 5 billion U.S. dollars was a culmination of a more than six-month government-to-government negotiation process between local and Chinese technocrats in various developmental sectors under the guidance of President Uhuru Kenyatta.

Alongside the Standard Gauge Rail (SGR) project now covered under the 4-billion-dollar economic partnerships agreement, the energy generation and transmission sector will also enjoy a 1 billion dollars funding line.

The proposed Mombasa-Nairobi-Malaba Standard Gauge Railway line is one of the key flagship projects under the Vision 2030 national development strategy and is categorized under the auxiliary Enablers and Macro pillar.<Xinhua/NEWSis>