Construction of a multi-product pipeline from Mombasa to Nairobi in Kenya will start imminently following an agreement between the Kenya Pipeline Company and Zakhem International Construction.
Under the contract, the contractors will build a 20 inch pipeline and 96 core fibre optic cable along the right of way of KPC from Mombasa to Nairobi.
Additional infrastructure includes four new pump stations, an upgrade of firefighting facilities as well as an outdoor high voltage power substation.
Kenya Pipeline company chairman John Ngumi has formally signed loan agreements with six banks to fund the project, which includes the Co-operative Bank and Standard Chartered, with the loan totalling $350 million (€322 million).
The new pipeline is expected to eliminate stock losses and lower petrol and diesel transportation costs.
Charles Tanui MD says that in the charter the company has committed to create capacity for handling, transporting, storing and transferring projected volumes of petroleum products from the port of Mombasa to the hinterland.