Government signs deal to unlock Sh6b Chinese loan

The Government has signed a framework agreement with the Chinese Government with hopes of unlocking an additional Sh6 billion concessional loan to finance the National Fibre Optic Backbone Infrastructure (NOFBI) and e-government expansion project.

China is one of the major donors whose cumulative official development assistance to date amounts to Sh109.43 billion.

Early this month the Government signed a loan agreement with the Export-Import Bank of China amounting to Sh31 billion for the Olkaria Geothermal Field Production Wells Drilling and Supply of Drilling materials project.

Finance minister Robinson Githae said the signing of the framework agreement would pave way for the signing of the loan agreement whose draft is under review by the two governments.

In a speech read on his behalf by Permanent Secretary Joseph Kinyua, Githae noted that the proceeds of the framework agreement would be specifically applied for the construction of fiber links to connect Nairobi City with former provincial headquarters to the core ring network.

He said, via broadband, the fiber links would also connect 36 administrative districts.

“Once completed, the project would provide a safer, more reliable, stable and efficient basic communication network for the Government and the Kenyan citizens,” Githae told reporters at the Treasury offices in Nairobi yesterday.

Githae said implementation of the proposed project would improve the quality of the public service delivery and improve the decision. Githae called for further support from the Chinese Government in the implementation of the Lamu Port Southern, Sudan, and Ethiopia Transport Corridor (Lapsset) project.

June 28, 2012

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