Many Kenyans Surprised and Somewhat Perturbed That the Chinese Contractor Building the Nairobi Expressway is Going to Make a LOT of Money

The China Road and Bridge Corporation (CRBC), a Chinese state-owned construction company, is forecast to earn almost a billion dollars in profits over the 27 years that it will operate the new Nairobi Expressway that’s now under construction. 

Details of the deal were revealed last week in parliament and published in Business Daily on Monday, prompting some degree of alarm among the public that the company is excessively profiting from the deal.

The first portion of the expressway is expected to open this year with the full road completed by 2024. CRBC is building a 27.1km portion where it will collect 35% of the toll fees that range between $1 and $15 depending on the size of the vehicle.

The reaction was decidedly negative on Kenyan social media and among the journalists on Business Daily’s editorial board who described CRBC’s take as “excessive.” But Gyude Moore, a senior policy fellow at the Center for Global Development in Washington and the former minister of public works in Liberia, provided an alternative view:

“Maybe that’s what the market is pricing the infrastructure based on inherent risks. SGR freight and passenger revenues are definitely not looking promising. Kenya’s debt profile and quality of governance impose still further risks. Could those risks be priced in?”

CRBC is the same company that also built and now operates Kenya’s Standard Gauge Railway.

SUGGESTED READING:

  • Get a daily email packed with the latest China-Africa news and analysis.
  • Read exclusive insights on the key trends shaping China-Africa relations.
  • Connect with leading professionals on the China- Africa Experts Network.

You've reached your free monthly article limit.

Subscribe today for unlimited access.

-17% Savings

The post Many Kenyans Surprised and Somewhat Perturbed That the Chinese Contractor Building the Nairobi Expressway is Going to Make a LOT of Money appeared first on The China Africa Project.



source https://chinaafricaproject.com/2020/11/24/many-kenyans-surprised-and-somewhat-perturbed-that-the-chinese-contractor-building-the-nairobi-expressway-is-going-to-make-a-lot-of-money/?utm_source=rss&utm_medium=rss&utm_campaign=many-kenyans-surprised-and-somewhat-perturbed-that-the-chinese-contractor-building-the-nairobi-expressway-is-going-to-make-a-lot-of-money

Comments

Post a Comment

Popular posts from this blog

China Angry With Japan Over G7 Joint Statement, Labels Accusations as “Hype”

The Chinese government lodged a formal complaint to Japan over the wording of the G7 communiqué published over the weekend.  Foreign Ministry Spokesperson Wang Wenbin said on Saturday that China felt it had been “attacked”  and that a number of points raised in the G7’s joint statement amounted to an “interference in its internal affairs.” Get a daily email packed with the latest China-Africa news and analysis. Read exclusive insights on the key trends shaping China-Africa relations. Full access to the News Feed that provides daily updates on Chinese engagement in Africa and throughout the Global South. China, Africa and the Global South... find out what’s happening. Subscribe today for unlimited access. Monthly $19/mo OR Yearly $199/yr (17% Savings) Already a subscriber? Log in Click Here to Learn More source https://chinaglobalsouth.com/2023/05/22/china-angry-with-japan-over-g7-joint-statement-labels-accusations-as-hype/
Read more

The Growing Influence of Chinese Policing in Africa

While joint military exercises between China and countries like South Africa draw controversy, much less attention is being paid to the role of policing in Africa-China relations. A fascinating new paper  by the Africa-China security expert Paul Nantuyla maps the growing influence of Chinese law enforcement in Africa. This includes the normalization of Chinese policing norms via institutional links and training. Get a daily email packed with the latest China-Africa news and analysis. Read exclusive insights on the key trends shaping China-Africa relations. Full access to the News Feed that provides daily updates on Chinese engagement in Africa and throughout the Global South. China, Africa and the Global South... find out what’s happening. Subscribe today for unlimited access. Monthly $19/mo OR Yearly $199/yr (17% Savings) Already a subscriber? Log in Click Here to Learn More source https://chinaglobalsouth.com/2023/05/23/the-growing-influence-of-chine
Read more

Papua New Guinea, Micronesia to Sign Agreement With U.S. as Pacific Island Countries Increasingly Take Sides in Great Power Rivalry

Pacific Island Countries (PIC) are the current focal point in the escalating competition for influence between the United States and China around the world. Both Papua New Guinea (PNG) and Micronesia signed defense agreements with the United States on Monday  during a brief visit by Secretary of State Antony Blinken. Get a daily email packed with the latest China-Africa news and analysis. Read exclusive insights on the key trends shaping China-Africa relations. Full access to the News Feed that provides daily updates on Chinese engagement in Africa and throughout the Global South. China, Africa and the Global South... find out what’s happening. Subscribe today for unlimited access. Monthly $19/mo OR Yearly $199/yr (17% Savings) Already a subscriber? Log in Click Here to Learn More source https://chinaglobalsouth.com/2023/05/22/papua-new-guinea-micronesia-to-sign-agreement-with-u-s-as-pacific-island-countries-increasingly-take-sides-in-great-power-rival
Read more