The World Bank’s MIGA arm to target Kenya’s Nairobi-Nakuru Highway
The Washington-based Multilateral Investment Guarantee Agency (MIGA) will focus its operations in Kenya on firms associated with the Nairobi-Nakuru Highway.
The insurance unit of the World Bank is aiming to diversify the current focus on the nation’s energy sector.
“We are looking at Nairobi-Nakuru Highway that National Treasury has put up for bidders. I understand they will be announcing the successful bidder very soon,” stated Vijay Iyer, Vice President and Chief Operating Officer of MIGA.
The company intends to offer its insurance to cover non-commercial risks to the winning contractor of the Sh55bn (US$544.7mn) project, as well as improving the company’s funding access.
“That is one project that is big and very transformational at it will strengthen Kenya’s logistical backbone. We are hoping that we will have a role to play in its success.”
“We see a lot of opportunities here in supporting government in some PPP projects by bringing in quality private investors and finding ways in which the projects can be structured to ensure resources that are coming in are well prices and carry a much longer tenure.”
Africa accounts for 23% of MIGA’s total global portfolio, with the continent’s portfolio value hitting Sh500bn ($5bn).
The World Bank arm intends to increase its work in Africa to total 33% of its global operations in three years.