RAILWAY I

closed

The project covers the last three years of KR's 1979-83 investment plan and includes essential track rehabilitation, equipment, and operational improvements to increase KR's effective capacity to meet traffic demands. The Project finances: (a) relaying of 103 km of main line track and improving 73 km of branch line track; ballasting and formation works; improving yards, crossing stations, and buildings; a transshipment depot at Malaba; and provision of machinery, vehicles and spare parts for track maintenance; (b) improving the telecommunications system; (c) purchasing hopper wagons and provision of spare parts for locomotives and wagons; (d) improving maintenance facilities; (e) improving marine services; (f) staff housing; and (g) extension of the training school, overseas training, studies to improve utilization of KR's facilities; and technical assistance at the middle management level. The main sources of risk affecting the Project include lower than projected growth rates for both domestic and external traffic, and slower improvements in KR's operational efficiency.