Price controversy haunts Standard Gauge Railway project

Last Updated 13 years ago by Kenya Engineer

Controversy continues to haunt the newly commissioned standard gauge railway project which will see Kenya lay down 485 kilometers of railway line in five years.

Leaders have raised alarm on the process used to award the contract-late last year-where a Chinese firm, China Roads and Bridges Company won the tender in “unclear” ways. The current issue on debate is on the cost of the project.

As opposed to Ethiopia’s railway line, Kenya’s line was first cited to cost Sh220 billion then the figure increased to Sh335 billion and then to the current price of Sh1.3 trillion.

Locomotives and rolling stocks that include 56 diesel locomotives, 1,620 freight wagons, 40 passenger coaches and one simulator would have cost Sh100.936 billion whereas Ethiopia’s locomotives and rolling stocks consisting 35 electric locomotives,6 diesel shunting locomotives,1,100 freight wagons,30 passenger coaches and one simulator would cost Sh20.24 billion.

Construction o the 485km Kenyan railway will require Sh233.8 billion compared to Ethiopia’s budget of Sh323 billion to build 756km from Addis Ababa to Djibouti port on the Red Sea Coast.

The difference in project cost is alarming considering Ethiopia’s railway line will be longer and involves higher technology than Kenya’s line yet they cost is almost similar.

The railway system in use in Kenya is below the standards currently in use in most parts of the world. The current Kenyan railway is 1,000mm narrow against the standard gauge’s 1,435mm.