Japanese sign US$239 million loan for Mombasa container terminal

JAPAN has agreed to invest JPY26.7 billion (US$239.05 million) in the Mombasa Port Development Project, which will involve the construction of a second container terminal that would double Kenya's capacity by 2018, reported Niarobi's the East African newspaper.

The second terminal at Mombasa will be built over three phases to handle 1.2 million TEU. The facility will cover a site measuring 100 hectares and it will be next to the Kipevu Oil Terminal, a kilometre from the existing container terminal.

The Mombasa Port Development Project will involve dredging the port's channel to 15 metres and the widening a turning basin, to accommodate larger vessels, the report said.

This development comes as the Port of Mombasa, the largest in the region, has been experiencing traffic growth in recent years owing to a rise in the economies of the countries it serves. Consequently, the second container terminal is intended to ease congestion at the port.

The report said a loan agreement was recently signed between the Kenya Ports Authority and the Japan Bank for International Co-operation (JBIC) in Nairobi.

This follows the earlier signing and exchange of two notes for the port project financed by Japan, comprising a loan of KES16 billion (US$250.78 million) and a Non-Project Grant Aid of JPY1.5 billion (US$13.43 million).