Kenya has awarded a $2.9 billion (Ksh 375 billion ) contract for the long-awaited upgrade of Jomo Kenyatta International Airport (JKIA) to China Communications Construction Company, as reported by Bloomberg.
This comes just two years after the Adani concession deal was cancelled.
The project is expected to be funded partly through proceeds invested in a new National Infrastructure Fund and commercial loans backed by securitized air-passenger service charges.
According to Bloomberg, the award to CCCC marks a return to large-scale infrastructure financing through Chinese contractors after the cancellation of a previous concession deal with India’s Adani Group two years ago.
The expansion of JKIA will follow a 20-year master plan running through 2045, featuring phased infrastructure development, capital expenditure planning, and financial feasibility projections.
Sources familiar with the matter told Bloomberg that the contract was awarded to China Communications Construction Company, although the government has not yet made a formal public announcement on the deal.
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President William Ruto has announced the expansion of Jomo Kenyatta International Airport (JKIA) as the first major project to be fully financed under the National Infrastructure Fund, with an allocation of Sh20 billion.
While speaking during the assent of the National Infrastructure Fund Bill at State House on March 9, the President unveiled the JKIA expansion as a flagship project under the new financing model.
“Today, I am pleased to announce that the expansion of Jomo Kenyatta International Airport will be the first major project financed through this new model under the National Infrastructure Fund,” Ruto said.
The master plan shared by the Kenya Airports Authority (KAA) outlines JKIA’s traffic forecasts, demand and capacity analysis, development options, the preferred expansion strategy, phased infrastructure development, as well as capital expenditure (CAPEX) and financial feasibility projections.
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Principal Secretary for Aviation and Aerospace Terry Mbaika announced that the government plans to construct a new terminal complex at JKIA with a capacity of 10 million passengers in Phase I and an additional 5 million passengers in Phase II, bringing total capacity to 15 million passengers annually.
The JKIA master plan proposes a comprehensive modernization programme, including the construction of a new runway by 2029 and increased airfield capacity to handle approximately 63 aircraft movements per hour, up from the current 14 movements per hour.
On terminal development and optimization, the master plan proposes the construction of a new passenger terminal building in two phases: Phase I with a capacity of 10 million passengers, and Phase II with an additional 5 million passengers.
On landside infrastructure upgrades, the master plan proposes the expansion and modernization of landside facilities, including improved access and circulation systems.
