Kenya seeks Sh170bn from BrazilBy PPS
President Mwai Kibaki.
Posted Sunday, June 24 2012 at 09:11
Kenya is in talks with Brazilian Development Bank (BNDES) in an effort to secure USD2 billion (approximately Sh170 billion) credit to support its development projects.
President Kibaki who is in Rio de Janeiro in Brazil attending the United Nations Conference on Sustainable Development held talks with the President of BNDES, which is the second largest development bank in the world.
During the talks, Kibaki expressed Kenya’s interest in establishing a credit-line of USD2 billion with BNDES to finance priority projects that include agricultural development, infrastructure and energy.
With respect to infrastructure Kibaki said the construction of roads is an important part of Kenya’s development agenda.
Kibaki appealed for partnership with Brazilian Government and investors in infrastructure development to decongest the city of Nairobi.
In the energy sector, Kibaki sought the support of the Brazilian Development Bank in financing the production of sugar, ethanol and co-generation of electricity.
During the talks, the President of the Brazilian Development Bank said the bank will extend a soft loan of USD80 million (approximately Sh6.8 billion) towards the mechanisation of agriculture in Kenya.
BNDES will extend further financing in excess of USD150 million (Sh13 billion) towards the construction of link roads and interchanges to decongest the city of Nairobi.
"With this commitment, Kenya now awaits the results of the review that the Brazilian Government and the Brazilian Development Bank are carrying out in conjunction with the Ministry of Nairobi Metropolitan Development for the construction of interchanges to decongest the city of Nairobi," said the PPS statement to the newsroom.