By Allan Odhiambo and Zeddy Sambu
Business Daily Africa

As the race for contract stakes in the planned seven billion dollar new railway lines to link Kenya with key regional capitals begins in earnest, groups of international investors are now angling to be incorporated in the initial design study.

Though no concrete deals have been reached so far, sources in Government said a team of Chinese investors have already expressed interest in the design study of the planned new line between the Port of Mombasa and Nairobi while another group of investors from Russia are eyeing to carry out the task on the section between Nairobi and the Addis Ababa.

“The offers are coming through, the interest is great but no agreement has been reached with any group so far. Some thing will be on the table soon,” a senior official at the Transport ministry told Business Daily.

According to plans, Kenya envisaged to have a detailed design study for the phase one Mombasa to Malaba railway section by July 2009 to pave way for a decision on funding and operational structure.

The project implementation is scheduled to kick off by end of 2009 as part of a wider East Africa infrastructure development venture that targets to build 15 new railway lines connecting at least seven countries.