Name and Location
Addis Ababa–Nairobi–Mombasa road corridor, Kenya to Ethiopia.

Project Description
The objective of the project is to promote trade and regional integration, as well as to improve transport communications between Kenya and Ethiopia for the benefit of both countries and the region.

The expected outcomes of the project include reduced transport and shipping costs between the two countries, reduced transit time for import and export goods, and increased volume of Ethiopian transit goods using the Port of Mombasa.

The expected long-term impact of the project includes increased intraregional trade between Ethiopia and Kenya, and the eastern Horn of Africa regions.

The development of the project covers over 880 km and is planned in three phases:

Phase 1 involves the construction, to bitumen standard, of the 136 km road section between Isiolo and the Merille river, in Kenya; the expansion of the Mombasa port facilities; the feasibility and engineering design studies for two corridor links in both Kenya and Ethiopia totalling 670 km; and an inland container terminal in preparation for the second and third phases of the project.

The proposed Phase 2 involves the con-struction to bitumen standard of 438 km of road sections, including the 245 km Merille river–Marsabit–Turbi road section, in Kenya, and the 193 km Ageremarian–Yabelo–Mega road section, in Ethiopia; the construction of road stations and one-stop-border post facilities; and policy action to sign a bilateral agreement.

The planned Phase 3 will include the rehabilitation of the 300 km Awasa-Ageremarian and Mega–Moyale road section and construction of an inland container terminal, in Ethiopia; construction of the 125 km Turbi–Moyale section, in Kenya; and the establishment of a transport facilitation programme to operationalise the transport bilateral agreement.

Upon completion, the corridor is expected to increase trade between the two countries by an average of 400%.

Value
$743-million.

The African Development Bank (AfDB) will provide 64% of the total finance requirements – an amount of $308.15-million. The AfDB financing will be in the form of two African Development Fund loans to Ethiopia and Kenya, amounting to $125.6-million and $195-million respectively.

The European Union (EU) will cofinance the project in Kenya on a parallel basis for $130-million, representing 23% of the overall project cost.

The governments’ counterpart contributions represent 13% of the cost and are made up of $25-million from the government of Ethiopia and $41.3-million from the government of Kenya.

The Bank Group will take the lead in mobilising other donors to finance the third and final phase of the project.

Duration
The project is expected to be completed in three years.

Client
The Ethiopia and Kenya governments.

Key Contracts and Suppliers
Japan International Cooperation Agency (JICA), AfDB and the EU (finance).

Latest Developments
Ethiopia and Kenya have signed a memorandum of understanding enabling them to work together on the road transportation corridor.

The agreement indicates commitments of the two governments to realise African regional integration, which will bring immense socioeconomic benefit for both parties.

On Budget and on Time?
Too early to state.

Contact Details for Project Information
AFDB, tel +216 71 10 39 00/+216 71 35 19 33 or email afdb@afdb.org.
Kenya Ministry of Transport, tel +272 9200, fax +273 0330 or
email info@transport.go.ke.
Ethiopia Ministry of Transport and Communications, tel +251 11 551 6166,
fax +251 11 155 15665 or email moi@moi.gov.et.
JICA, tel +251 11 550 4755 or fax +251 11 550 4465.