Kenya - Horn of Africa Gateway Development Project : Additional Financing

Overview & Synopsis

The development objective of Horn of Africa Gateway Development Project is to improve: (a) the movement of people and goods and digital connectivity and access to social services to communities at designated locations along the targeted sections of the Isiolo-Mandera Regional Road Corridor; and (b) the capacity of selected transport related institutions in Kenya. This paper seeks an additional financing (AF) of 290 million US dollars to cover cost overruns in the project’s original activities, thereby safeguarding and enhancing development impact. The higher costs stem primarily from: (i) technical modifications to enhance the climate resilience of World Bank–financed road sections and bridges, and (ii) disproportionate increases in the prices of certain construction materials since the project’s 2020 appraisal. The AF, as with the parent project, aligns with the World Bank Group’s Country Partnership Framework (CPF) for Kenya (2023-2028), which emphasizes expanding infrastructure to underserved areas, improving regional connectivity, and developing major roads that address poverty, inequality, fragility and climate resilience. There have been no changes to the PDOs, design, scope, or safeguards category. However, certain activities will be reallocated across categories through restructuring to rationalize the workload and ensure alignment with the respective institutional mandates.