A US $150m dam is set for construction in Mombasa, Kenya.This is after the government signed a credit facility agreement with France for its commencement, having an objective of providing 138,000,000 M3 of water for Kwale & Mombasa Counties and rehabilitating the degraded Mwache Catchment.
Treasury Cabinet Secretary Henry Rotich says the facility, extended by Agence Francaise De Development, comes with a 1.46% interest rate per annum, and has 20 years repayment period including an 8 year grace period.
“We expect the dam to serve the entire Mombasa County and to be completed in three years,” Rotich said.
The Mwache Multi-purpose Dam Development Project is a priority investment by the Government as a flagship project of Vision 2030. The project was under the portfolio of the former Ministry of Regional Development Authorities (MoRDA) through the Coast Development Authority (CDA) working in partnership with Coast Water Services Board (CWSB).
Credit facility agreement
The main user of the water, Mombasa County, through the Mombasa Water and Sewerage Company (MOWASCO), is now part of the partnership and is working jointly with CWSB and CDA.
The dam site is located across the Mwache River at the Fulugani village, Kwale County, about 22 km west of the city of Mombasa. The Coast Water Supply Master Plan has identified the dam as the preferential, viable, and necessary long-term option for water supply to Mombasa and Kwale counties.
Treasury has also signed a credit facility agreement for a non-sovereign loan of US $72m for Meru Wind project between Kenya Electricity Generation Company and AFD. Further to the two statement letters were signed which include one in support of the implementation of public finance management reforms at a cost of US $40m and another in support of the electricity transmission network at a cost of approximately US $110m.
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