Kenya said it would invest some 26 billion shillings ($349 million) to expand and modernise its major airports over the next four years, 16.8 billion of which will by financed through loans.
The European Investment Bank (EIB) and French Development Agency will each give $93 million and the World Bank will advance a further $34 million, George Muhoho, the head of the Kenya Airports Authority (KAA), told reporters. The airports authority will put up the rest.
"Over the next four years or so we are going to invest a massive 26 billion shillings in the expansion and modernisation of our airports," he said, adding that KAA would spend more on other renovation plans.
The French Development Agency loans will have an interest rate pegged to six-month Libor plus 2.8%, Muhoho said. KAA has yet to finalise terms of the EIB loan.
Part of the money will be used in the second phase of expanding Nairobi’s main Jomo Kenyatta International Airport by adding a fourth terminal, renovating the existing passenger facilities and constructing parking for about 2000 vehicles.
China’s state-owned National Aero-Technology International Engineering Company will carry out those works starting in December. Construction will cost $73 million and should be complete within 21 months.
The final $95.1 million expansion phase will start in 2011. A tender for that work will be advertised in March, Muhoho said.
The airport, which was put up over three decades ago, handles about 5 million passengers annually but was designed for only 2.5 million people. In the first phase of expansion, China’s KAA laid down a new apron and taxiway for $40 million.