Addis Ababa, November 9, 2009 - Traders in Uganda, Kenya, Ethiopia and Djibouti will have their turnaround time on roads while transporting their goods from within and outside the countries reduced because of the planned improvement in the region's road infrastructure.

This is because the African Development Bank (AfDB) board of directors has approved a total of $452 million for development of road infrastructure in the four countries.

Out of the $452 million loan, $326.5 million will finance the second phase of the Mombasa-Nairobi-Addis Ababa road corridor project. The project area extends beyond Ethiopia and Kenya to include Uganda, Tanzania, Eritrea and Djibouti. It involves the construction and tarmacking of 438 km road sections including the 245 km Merille river-Marsabit-Turbi road section in Kenya and 193 km Ageremariam-Yabelo-Mega road section in Ethiopia. 

It also includes the construction of roadside socio-economic infrastructure, and the construction of a one-stop-border-post between Kenya and Ethiopia, according to a statement issued by the bank last week.

The project aims at improving transportation between Kenya and Ethiopia and for the benefit of the region. 

"It will promote intraregional trade, reduce transport and shipping costs between Kenya and Ethiopia, reduce transit time for imports and exports and increase the volume of Ethiopian goods transiting through the Mombasa port in Kenya and Horn of Africa," said the bank's chief transportation engineer, Mr. Amadou Oumarou.

He however said the development of the Mombasa-Nairobi-Addis Ababa road corridor into a viable trade route requires an integrated approach. 

"It must take into account not only the construction or improvement of the road, but also the capacity expansion of the port of Mombasa, the construction of transit infrastructure facilities, and the policy and operational changes for trade and transport facilitation," he said.

He said the road is a priority under the Trans-African Highway Network and a flagship regional integration project under the New Partnership for Economic Development (NEPAD) infrastructure plan. AfDB director for infrastructure, Mr. Gilbert Mbesherubusa said similar support had been given for the Nairobi-Thika Highway in Kenya, the Arusha-Namanga-Athi River road in Kenya and Tanzania, the Singida-Babati road in Tanzania and the studies of the Kazungula bridge between Zambia and Botswana.

He said by linking Kenya and Ethiopia, the project will impact the whole of east and horn of Africa regions. However, since the corridor is being developed in phases, the project area for the first and second phases lies mostly in the northeast arid and semi arid region (ASAL) of Kenya and the Oromia region of Ethiopia," he said..

The board of directors of the AfDF has also approved a loan of $125.6 million to finance the road sector support project III (RSSP3) in Uganda. It is aimed at improving road access in the districts of Kiruhura, Ibanda and Kamwenge districts located in western Uganda. The project includes civil works for upgrading to a bitumen standard the 143km stretch of Nyakahita-Ibanda-Kamwenge road to a 6 metre carriageway and building of 1.5 metre shoulders on either side.

There will also be an installation of a weigh-bridge at an appropriate location to control vehicle over-load. The project will have other opportunities in the resettlement plan, road safety, project audit, feasibility and design studies for Kayunga-Galiraya (83km) and Hoima-Butiaba-Wanseko (111 km) roads in central-north Uganda.

The five year project will improve transport services with reductions in transport costs, travel times and improved road safety and will directly enhance the livelihood of an estimated 800,000 people within the project area, majority of them involved in agricultural activities, animal husbandry and trading.  The total project cost is estimated at $173. 1 million, of which the proposed ADF loan will cover 92.3% of the foreign exchange cost and 5.1% of local costs.

Government of Uganda will finance provide $47.4 million representing 27.4 % of the total costs, mainly in local currency worth 94.9% with 7.7% in foreign costs. (East African Business)