MPs question $15m risk guarantee for rail buyer

Feb 08, 2007

Members of Parliament (MPs) have asked the finance state minister, Fred Omach, to explain why the Government was borrowing $15m (about sh27b) as partial risk guarantee for the Rift Valley Railways (RVR).

By Mary Karugaba

Members of Parliament (MPs) have asked the finance state minister, Fred Omach, to explain why the Government was borrowing $15m (about sh27b) as partial risk guarantee for the Rift Valley Railways (RVR).

The Rift Valley Railways consortium was given a 25-year concession to operate Kenya and Uganda railways.

Omach was appearing before the committee on the national economy to seek approval of the $15m to finance the East African Trade and Transport Facilitation Project.

The money was given by the International Development Association of the World Bank.

The committee chaired by Ibrahim Kaddunabi demanded to know why the Government was guaranteeing the loan yet it was not provided for in the agreement.

“If it was that important, why was it excluded from the agreement?” Kaddunabi asked.

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