Kenya Airports Authority (KAA) has today signed a credit facility agreement of KES 5.9 billion (USD 66 million) with French Agency Development (AFD) to rehabilitate Mombasa International Airport. The main objective of the project is to improve quality and safety at the airport so as to reduce maintenance costs incurred at the Mombasa Airport.
The non sovereign AFD loan will aid in the construction of airfield ground lighting, upgrading of power and water supply. This improvement will ease air connectivity between Nairobi and Mombasa as a key alternative to road travel.
‘The signing of the financial agreement witnessed here today will not only help KAA meet its mandate in developing the aviation sector, but will serve as a catalyst for the growth of the economy in serving customers at world class standards,’ remarked Lucy Mbugua ,KAA Managing Director.
Speaking at the signing ceremony, French Ambassador to Kenya, H.E Mr Rèmi Marechaux said ‘Air transport being a major source of transporting perishable and non-perishable goods, AFD intends to contribute to Kenya’s and the East Africa Community (EAC) economic growth and enhance competitiveness advantage to the region.’
In addition, this scheme signed by KAA is innovative: credit without the guarantee of the Government of Kenya. This shows how AFD has the ability to support key investment projects which are in line with policies of the Government of Kenya.
In June 2010, KAA signed the first financial agreement with AFD for the construction of the new Terminal 4 at Jomo Kenyatta International Airport (JKIA) and this becomes second AFD intervention in civil aviation in Kenya.
Also in attendance was AFD Regional Director, Mr. Yves Boudot and Professor Mutuma Mugambi, KAA chairman.