The World Bank announced Wednesday it has approved a total of 259 million U.S. dollars for risks management and trade and transport facilitation in Kenya, Uganda, Tanzania and Rwanda.

A statement from the bank's office in Nairobi said the grant combined a total of 199 million dollars and Partial Risk Guarantees (PRG) for up to 60 million dollars.

The statement said Kenya will receive 120.6 million dollars, Tanzania 37 million dollars and Uganda 26.4 million, while Rwanda which is expected to become a East African Community (EAC) member in 2006 obtained a grant 15 million dollars.

"In addition, PRG for amounts of up to 45 million dollars and 15 million dollars, respectively was approved in support of the Joint Railway Concession in Kenya and Uganda, which is being concessioned to the Kenyan and Ugandan subsidiaries of the Rift Valley Railways Holdings Ltd. (RVRH), whose lead investor is a South African company," the World Bank said.

The statement said IFC Infrastructure Department may also consider debt financing in support of the Investment Program of the Concessionaire for the development of the Railways.

The project would also enhance the efficiency of transport and logistics services along key transport corridors by reducing non- tariff barriers and uncertainty of transit time; and improve railway services in Kenya and Uganda.

The Bank said the project will also improve the efficiency of trade supply chains and main trade routes, from the main gateways (the Mombasa and Dar-es-Salaam ports) to the main business centers, notably through the reduction of port clearance delays.

"The benefits of the project go far beyond the four countries directly benefiting from World Bank funding, as Burundi, eastern Democratic Republic of Congo and Southern Sudan mostly rely on Dar- es-Salaam and Mombasa for their external trade," said Jean- Francois Marteau, the bank's task team leader for the project.

"The Partial Risk Guarantees will be provided to the investors in support of political and noncommercial risks and should help to ensure the long term sustainability of the two concessions," said Farida Mazhar, the guarantee team leader.

"Furthermore, the PRGs will also help to mobilize debt and equity financing for the substantial investments in the railway systems of the two countries and are, therefore, considered critical to the successful Financial Closure and Takeover of the Concessions," Mazhar added.

Source: Xinhua