Moderators: Komachi, David Benton
David Benton wrote:"The first major new railway line in Kenya for more than a century, running between the capital Nairobi and the coastal city of Mombasa, faces an immediate challenge of justifying its relatively high cost."
http://www.bbc.com/news/world-africa-40171095
...President Uhuru Kenyatta’s government spent $4 billion on a 300-mile railway connecting the capital to the Indian Ocean port of Mombasa, the most expensive infrastructure project since Kenya’s independence 54 years ago and one-fifth of its national budget.
Eager to portray it as a major achievement ahead of national elections in August, Mr. Kenyatta opened the so-called Standard Gauge Railway last Wednesday. But the fanfare was overshadowed by a concern that has been snowballing for months, filling many Kenyans with mild terror: How can the country repay its monstrous debt to China...
David Benton wrote:Not a new thing for China to finance railways in Africa. I haven't heard of them been over demanding or extorting the countries involved.
I think it is simply the case of them having the cash, and obviously it is a good market for their manufacturers, nobody would expect the equipment to be anything but Chinese.
johnthefireman wrote:Yes, but that was forty years ago. Africa, China and the global politico-economic climate have all changed radically since then.
george matthews wrote:Moreover, as the metre gauge has been closed after Nairobi I assume that freight from Uganda - and indeed much of Kenya - is not being transported, or only with difficulty if it has to be transferred on to the Standard Gauge.
johnthefireman wrote:george matthews wrote:Moreover, as the metre gauge has been closed after Nairobi I assume that freight from Uganda - and indeed much of Kenya - is not being transported, or only with difficulty if it has to be transferred on to the Standard Gauge.
As far as I know the metre gauge has not been closed. It will be some years before freight to Uganda runs on the standard gauge.
johnthefireman wrote:The metre gauge has not (yet) been closed as far as I know. The standard gauge has only run a couple of test freight trains from Mombasa to Nairobi so far, as I understand it. There is no question of transferring from metre onto standard gauge at Nairobi because the standard gauge does not yet run beyond Nairobi anyway and will not do so for some years. I'm not sure I really understand your point, except that the real money is in freight not passenger, which is taken for granted.
george matthews wrote:My point is that if there is to be a real overall profit from this railway - enough to make possible the servicing of the loan - a large part of it will have to come from cargoes and people west of Nairobi. So I hope that section of the line will be ready soon.
Despite cost concerns, Kenya’s deal shows that infrastructure agreements with China can be made fairer for citizens of partner countries. Its neighbours should take note.
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