African Infrastructure Investment Managers (AIIM) is investing $34m (€32.6m) in Kenya’s network through its fourth-generation pan-African infrastructure fund.
AIIM, via its AIIF4 fund, has acquired a 74% stake in the Lots 15 and 18 road projects of Kenya’s Road Annuity Programme from Mota-Engil.
Lots 15 and 18, currently under construction, will upgrade roads from gravel to asphalt standards and cover approximately 44.9km and 35.1km of roads in central and western Kenya, respectively.
They are financed with a 75:25 debt-to-equity ratio, with Stanbic Bank providing the required loans in Kenya Shillings, AIIF4 providing 74% of the required equity and Mota-Engil and Lee Construction providing the remaining 26% equity. Mota-Engil and Lee Construction will also act as the roads’ EPC and O&M contractors.
Ed Stumpf, investment director at AIIM, said: “We look forward to partnering with Mota-Engil, Lee Construction, Stanbic Bank, MIGA, and the government of Kenya in this expansive project, which will better link regional communities to neighbouring markets and national transport networks, facilitating more efficient logistics and fostering economic growth.
“The project will also create employment opportunities with up to 400 staff at its peak construction phase.”
Roberto Ferreira, executive director-business development at Mota Engil said: “As an engineering and infrastructure expert with over 70 years of experience in Africa, we are proud to be involved in the Kenyan government’s Road Annuity Programme with Lee Construction and AIIM.
“Over a 10-year period, we will improve and maintain the Lot 15 and 18 road networks to strengthen transport links for residents of 10 counties in Kenya.”
Lee Nyachae, the founder and managing director of Lee Construction, said: “With the government’s emphasis on the agricultural economy, farmers will need access to markets beyond their backyards; these investments make this possible.
“The socio-economic impact of an effective road network should not be underestimated. We are proud that we are expanding our partnership with the addition of AIIM as our new funding partner to help bring our agricultural sector to its potential.”
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