Mombasa County is set to benefit from the development of Mwache dam project after the Kenya Teasury signed a US $139.2m agreement with France for the purposes of funding the Multi-purpose dam project.
This, according to Treasury Cabinet Secretary Henry Rotich, is with a view to improve the drinking water and sanitation systems in Mombasa.
According to Mr. Rotich, the facilitation by Agence Francaise De Development (AFD), comes with a 1.46% interest rate per annum. It also has a repayment period of 20 years. This is inclusive of an 8 year’s grace period. The dam, which is expected to reach completion in three years’ time, will serve the entire Mombasa County.
The dam site, located across the Mwache River at the Fulugani village, Kwale County, about 22km west of the city of Mombasa has been identified as the preferential, viable, and necessary long-term option for water supply to Mombasa and Kwale counties.
The dam, through the Coast Development Authority (CDA), is a flagship project of Vision 2030 and is a priority investment by the Government of Kenya. CDA is also working in partnership with Coast Water Services Board (CWSB) and Mombasa County, through the Mombasa Water and Sewerage Company (MOWASCO).
When completed, the dam will provide 138 million cubic meters of water to be used in Kwale and Mombasa Counties for livelihood support and Sanitation. The project will also rehabilitate the degraded Mwache Catchment through the Implementation of component 2 before the construction of the dam.
Treasury has also signed a credit facility agreement for a non-sovereign loan of approximately US $79.5m for a Meru Wind project between Kenya Electricity Generation Company and AFD.
There are additional statement letters signed by the Treasury in support of the implementation of public finance management reforms at a cost of US $35.7m and the electricity transmission network at a cost of US $111m respectively.