China Eximbank provides 183.6 million USD preferential buyer's credit for Southern Bypass Project

In 2011, Chinese Eximbank and the Government of Kenya signed a 183.6 million USD preferential buyer's credit (PBC) loan agreement for the Southern Bypass Road Project. The total cost of the Southern Bypass project was $216 million. 85% of the cost was supported by the China Eximbank loan, with the Kenyan Government covering the remaining 15% of the cost. The terms of the loan agreement are as follows: 2% interest rate, 7-year grace period, 20-year maturity. The loan is scheduled for semi-annual repayment in equal installments from January 21, 2018, to July 21, 2030. Under the supervision of the Kenya National Highways Authority, China Road and Bridge Corporation was the contractor responsible for implementation of the project. The purpose of the Southern Bypass Project was to ease traffic congestion in Nairobi and divert traffic from the city center. The 28.6 km road starts at the junction of the Nairobi–Mombasa Road and Likoni Road, approximately 10 kilometres (6 mi) south-east of the city center. The road then loops through the south-western suburbs of Nairobi, including the northern environs of Nairobi National Park, Uhuru Gardens, Lang'ata, and Dagoretti. In Dagoretti, the road enters Kiambu County and then turns northwards, to pass through Muguga and end in the town of Kikuyu, in a suburb known as Gitaru. At that location, the road connects with the Nairobi-Malaba Road (A104). Road construction began on March 16, 2012, and the project was officially completed on November 1, 2016.

Number of official sources

4

Number of unofficial sources

2