CREDIT TO BOOST BORDER TRADE.
The Government has received credit from the International Development Association(IDA) that will see the construction of Kenya-Uganda and Kenya- Tanzania border posts, to facilitate the East Africa Trade and Transport Facilitation Project (EATTFP).
This is expected to boost the small scale traders across the East African Region.
The Government through the ministry of roads will use part of the loan to facilitate the construction of border posts in Malaba, Busia,Isebania and Taveta border crossing.
This will involve the construction of administration blocks,security enforcement offices, custom booths, X-ray rooms, incinerators and other engineering works.
The project was initiated five years ago following a general procurement notice that appeared in a market publication and is aimed at transforming East Africa’s borders into one stop border posts.
The development comes at a time when a National Cross Border Trade Association has been launched to boots the East African regional trade.
According to the Permanent Secretary in the Ministry of Trade Abdulrazaq Ali, cross border trade, will be beneficial to the small scale traders, who have been facing challenges of limited market access, export and import procedures informality of small scale trader sand lack of information or information asymmetry, terming their contributions to the national economy as important.
“The informal cross border trade currently accounts for about 30% to 60% of all inter-regional trade. Evidence further shows that over 50% of intra regional trade is conducted through the informal cross border trade, particularly those trading in agricultural products,” said Ali during the launch.
With plans underway to convert the current five Cross Border Trade Associations (CBTAs) at the Kenya/Uganda and Kenya/Tanzania borders to one regional border, There are also plans to open the Kenya/Sudan and Kenya/Ethiopia borders.
The Kenya National Highways Authority which is the implementing agency of the project has invited bidders for tenders on the project to facilitate its construction and completion.
Bidding will be conducted through the National Competitive Bidding (NCB) as per the World Bank guidelines which is a competitive bidding procedure normally used for public procurement in the country of the Borrower, and may be the most efficient and economical way of procuring goods or works which, by their nature or scope, are unlikely to attract foreign competition. This will be upon payment of 10,000 shillings for the bidding documents and includes a 15 months construction period once the final bidder has been selected.
