The second post I uploaded to this blog concerned the infrastructural challenges faced by many African countries and focused on transport problems between the Port of Mombasa and the Kenyan capital in Nairobi. Happily, there has been some progress.
The Kenya railroad project seems set to proceed with funding from China. The project will include a standard gauge rail line from Mombasa to Nairobi, for which funding has already been secured and a contract agreed with the China Road and bridge Corporation (CRBC). Work is expected to be completed by 2017 on this section. The new railroad is expected to cut freight transit times to 8 hours, from the current 36 hour journey and passenger trains will complete the trip in 4 hours.
In separate agreements, signed and witnessed by the Presidents of Kenya, Uganda, Rwanda and South Sudan, the Exim Bank of China will fund 90% of the cost of extending the railway from Nairobi to Kampala with links to Rwanda, Burundi and South Sudan. Kenya will fund the remaining 10%.
The implications for the region are enormous because the Uganda-Kenya border is home to what may be the most significant oil and gas reserves outside of Saudi Arabia. The Ugandan reserves are estimated at 6.5 billion barrels, although how much is recoverable with current technology is still debated. However, most experts agree that oil production in the region will last at least 30 years. The ability to haul equipment and supplies to the area is currently a major obstacle to development of the fields and the new railroad will represent a huge step forward.
Just today, UK based Tullow Oil announced plans to begin drilling activities in the Turkana region of Kenya after discovery of fresh deposits in what company officials called an "excellent start to exploration campaign".
No doubt we will see more news on this topic in the coming months.
In unrelated and somewhat topsy turvy news, Rwanda announced plans to screen airline passengers arriving from the United States and Spain due to the confirmation of Ebola cases in both countries. I can't say that I blame them.
The Kenya railroad project seems set to proceed with funding from China. The project will include a standard gauge rail line from Mombasa to Nairobi, for which funding has already been secured and a contract agreed with the China Road and bridge Corporation (CRBC). Work is expected to be completed by 2017 on this section. The new railroad is expected to cut freight transit times to 8 hours, from the current 36 hour journey and passenger trains will complete the trip in 4 hours.
In separate agreements, signed and witnessed by the Presidents of Kenya, Uganda, Rwanda and South Sudan, the Exim Bank of China will fund 90% of the cost of extending the railway from Nairobi to Kampala with links to Rwanda, Burundi and South Sudan. Kenya will fund the remaining 10%.
The implications for the region are enormous because the Uganda-Kenya border is home to what may be the most significant oil and gas reserves outside of Saudi Arabia. The Ugandan reserves are estimated at 6.5 billion barrels, although how much is recoverable with current technology is still debated. However, most experts agree that oil production in the region will last at least 30 years. The ability to haul equipment and supplies to the area is currently a major obstacle to development of the fields and the new railroad will represent a huge step forward.
Just today, UK based Tullow Oil announced plans to begin drilling activities in the Turkana region of Kenya after discovery of fresh deposits in what company officials called an "excellent start to exploration campaign".
No doubt we will see more news on this topic in the coming months.
In unrelated and somewhat topsy turvy news, Rwanda announced plans to screen airline passengers arriving from the United States and Spain due to the confirmation of Ebola cases in both countries. I can't say that I blame them.
TW
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