THE AFRICAN BUSINESS FORTUNE MAGAZINE ISSUE #006 The African Business Fortune Magazine | Page 35

THE AFRICAN BUSINESS FORTUNE - INFRASTRUCTURE

Concession as an agreement is a
grant of rights by a government or
corporation while concessionaire is a
person or business that has been given
the right to sell something on property
owned by someone else.
In the last six years to date, the operator has spent over Sh12bn on phase
since the signing of a new concession
agreement in August 2010 which ushered in new investors.
Qalaa Holdings, formerly Citadel
Capital of Egypt expressed interest in
taking over the concession to manage

Sh327b
Cost of SGR

Kenyan Government contracted China
Roads and Bridges Corporation (CRBC)
to construct the $3.8bn or Sh327billion railway line between Nairobi and
Mombasa in which China Exim Bank
provided 90 per cent of the financing while the national treasury contributed the remaining 10 per cent.

the railway line. Negotiations between
the investors and the governments of
Uganda and Kenya as well as international financiers keen to put together
a viable concession agreement happened in 2010 which would later incorporate the rehabilitation of railway
infrastructure, repair rolling stock and
turn around the line.
As a result, the two governments
and RVR signed a concession agreement to manage the line.

THE AFRICAN BUSINESS FORTUNE MAY - JUNE 2016 35