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The loans comprise US$75 million from the non-concessional window of the Bank Group and US$142 million from the concessional lending division, known as the African Development Fund.

The Kenyan government will contribute US$6.3 million.

The US$223.3 million project covers the 740 kilometre Isiolo-Mandera corridor and will enhance regional integration and trade between Kenya, Somalia, and Ethiopia. About 867,000 people who reside around the project area are expected to benefit from the initiative.

The road network, including the 142 kilometre El Wak-Rhamu stretch, is one of the four priority corridors identified under the Horn of Africa Initiative, driven by the governments of Kenya, Ethiopia, Somalia, Sudan, Eritrea and Djibouti. The initiative is supported by the African Development Bank, World Bank and European Union.

Major boost for the Northeastern region as #Kenya receives US$750 million from the @WorldBank to finance the Horn of Africa Gateway Development Project (#HoAGDP) to spur regional integration. Learn more here: https://t.co/GjQm8tQ0yX @FCDCKenya @KeTreasury @aliiroba pic.twitter.com/dQFCywer1I

— World Bank Kenya (@WorldBankKenya) September 10, 2020

The road project is expected to contribute to the socio-economic development of communities along the corridor, which is characterized by high poverty levels and prone to insecurity. According to World Bank estimates, 70 percent of the residents in the project area live in poverty, with poor access to basic services. This is exacerbated by frequent droughts that pose a threat to livestock, the main source of food and income here.

Photo: Isiolo to Mandera route in Northern Kenya [Google Maps / Wikipedia]