Kenya’s Thika superhighway leads to more mega-projects

The 50 kilometre-long Thika superhighway in Kenya, which was funded by AfDB but constructed by Chinese firms SinoHydro Corporation, China Wu Yi and Sheng Li Engineering Company. Photo/FILE 

By STEVE MBOGO Special Correspondent

In Summary

• Analysts see infrastructure and trade as the biggest drivers of China-Africa relations.
• While much of the co-operation has been in infrastructure development, the Chinese are seeking to widen the scope to other sectors.
• Chinese government will this year set up the China-Africa Press Exchange Centre in China where East African media houses have been invited to set up offices so that they can tell African stories to the Chinese people more directly.

Hari Ramesh, chief resident engineer for the 50.4 kilometre-long Thika superhighway in Kenya, said its completion was an engineering feat as it was done when the road was still in use.

The superhighway is one of the biggest infrastructure projects by Chinese companies so far. It was handled by SinoHydro Corporation, China Wu Yi and Sheng Li Engineering Company.

The involvement of the Chinese in mega infrastructure projects in Kenya appears to be increasing. China Bridge and Road Construction has been chosen as the contractor of the standard gauge railway line.

READ: Controversy dogs firm building standard gauge railway line

Anhui Construction Engineering Group and China National Aero-Technology International Engineering Corporation are the chosen contractors of the Greenfield Terminal at Jomo Kenyatta International Airport in Nairobi.

Chinese companies may also benefit from contracts to develop the LAPSSET infrastructure in particular the pipeline to move oil from Uganda, Kenya and South Sudan to the yet to be constructed Lamu Port; the railway line linking Ethiopia to Lamu Port and other related infrastructure.

Analysts see infrastructure and trade as the biggest drivers of China-Africa relations.

“The ties between China and Kenya will continue to grow because of the converging interests in infrastructure, innovation and natural resources,” said Denise Kodhe, the executive director of the Institute for Democracy and Leadership in Africa.

Analysts said there is well co-ordinated co-operation between Chinese public and private institutions in their competition with the West to win big infrastructure contracts in Africa especially where bilateral concession loans have been provided by Chinese public financial institutions

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Pricing

Chinese companies give competitive prices for projects, which is an added advantage. This has seen them win projects financed by Western financial institutions and multilateral bodies like the African Development Bank, which financed the Thika superhighway.

READ: China’s lending to Kenya hits $750m

Another advantage that Chinese firms have is that their government uses its financial and technology muscle to give Chinese companies an edge in Africa.

For instance, in 2009 the China Development Bank gave a loan to Kenya construction company Erdemann Property for the construction of 586 houses.

The construction of the houses was done by China Wu Yi. This same company is constructing the KCB Bank Centre in Upper Hill, Nairobi, one of the first buildings that will utilise green technology to reduce demand for power and water.