African Infrastructure Investment Managers (AIIM) is investing $34 million (€32.6 million) in the Kenyan grid through its fourth-generation pan-African infrastructure fund.
AIIM, through its AIIF4 fund, has acquired a 74% stake in the road projects of lots 15 and 18 of the Road Annuity Program of Kenya from Mota-Engil.
Lots 15 and 18, currently under construction, will upgrade roads from gravel to asphalt and cover approximately 44.9 km and 35.1 km of roads in central and western Kenya respectively.
They are funded on a 75:25 debt-to-equity ratio, with Stanbic Bank providing the required loans in Kenyan shillings, AIIF4 providing 74% of the required capital, and Mota-Engil and Lee Construction providing the remaining 26% of the capital. Mota-Engil and Lee Construction will also act as EPC and O&M contractors for the roads.
Ed Stumpf, AIIM’s Chief Investment Officer, said: “We look forward to partnering with Mota-Engil, Lee Construction, Stanbic Bank, MIGA and the Kenyan government on this expansive project, which will better link regional communities with neighboring and national markets. transportation networks, facilitating more efficient logistics and fostering economic growth.
“The project will also create employment opportunities with up to 400 employees in its peak construction phase.”
Roberto Ferreira, Executive Director of Business Development at Mota Engil, said: “As an engineering and infrastructure expert with over 70 years of experience in Africa, we are proud to participate in the Kenyan Government Road Annuity Program with Lee Construction and AIIM.
“Over a period of 10 years, we will improve and maintain the road networks of Lots 15 and 18 to strengthen transport links for residents of 10 counties in Kenya.”
Lee Nyachae, founder and managing director of Lee Construction, said: “With the government’s emphasis on agricultural economics, farmers will need access to markets beyond their backyards; these investments make it possible.
“The socioeconomic impact of an effective road network should not be underestimated. We are proud to expand our partnership with the addition of AIIM as our new financial partner to help bring our agricultural sector to its potential.”
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