The Japan International Cooperation Agency (JICA) has signed a Sh24bn (US$261m) loan agreement with the Kenya Ports Authority for the second phase at the Port of Mombasa. The project will see construction of a new container terminal along with new cargo-handling equipment.
The project is a response to a tripling in container volume at the port over the past decade, from 300,000 teu in 2002 to 1m teu last year. It is predicted that the demand will continue to increase, with a projection of more than 2.6m teu by 2025.
The Kenyan government is currently moving forward with preparations to have the private sector handle operations at the new terminal, which will be the first agreement of its kind in Kenya.
Once completed, the project will provide further port infrastructure as a gateway to the East African countries by the Northern Corridor, linking the land-locked countries of Uganda, Rwanda and Burundi with the Port of Mombasa. The Northern Corridor also serves the Eastern part of the Democratic Republic of Congo, Southern Sudan and Northern Tanzania.
JICA is also providing technical support for road infrastructure around the port and to strengthen the border customs functions, as well supporting work to formulate master plans for Mombasa City and the Northern Corridor.
This latest Official Development Assistance (ODA) loan is the largest financial support since JICA commenced cooperation with Kenya in 1963.