The Government has Wednesday asked the World Bank to review its procurement rules and procedures for disbursing funds to lenders to avoid delays in implementation of projects.
During a meeting with directors of the Bank at the Treasury offices, Prime Minister Raila Odinga said the government is incurring extra costs in World Bank Funded Programs due to slow implementation, lengthy procurement procedures and delays in disbursement of funding.
He cited the delay in responding to Kenya's application for Clean Technology Fund and construction of the Northern Corridor where a contract awarded to a Chinese Company was nullified by the Bank, further delaying the whole project.
The PM, in sentiments shared by Deputy Prime Minister Uhuru Kenyatta and Roads Minister Franklin Bett, that World Bank financed projects have awfully long procurement procedures.
Currently, the Bank is yet to disburse some $1.5 billion committed to the country, the PM said.
The executive directors of the World Bank are in the country for as part of routine visit to member countries to assess the implementation of Bank financed projects.
They will also be visiting Seychelles and the Union of Comoros.
The PM however thanked the bank for various projects in the country with financial commitment of over $1.6 billion.
But he asked the officials to speed up the Bank's due diligence procedures.
He said the government appreciated the approved additional funding for the Northern Corridor, Lake Victoria Environment Management and Energy Recovery projects.
He said the government also appreciated the Bank's willingness to fund the Kenya Youth Empowerment Project whose negotiations ended in Washington last week and is due for presentation Board at the end of the month.
Mr Odinga asked the Bank to support Kenya's environmental conservation and green energy programmes.
The bank directors later had a round table with ministers of Agriculture, Roads, Water, Public Health, Education and Energy who presented their programs and experiences with the Bank.
At the function, Finance Minister Uhuru Kenyatta asked for support for various programs the government launched to eradicate regional disparities.
He said the government is keen to distribute equitable development and cited the stimulus package and rural electrification programs as examples.
The Finance Minister also asked the Bank to support regional integration in East Africa.
Responding to the issues, the leader of the World Bank officials said the institution is rethinking its mandate and is reviewing its investment lending practice.
The officials said the mission from Washington was a manifestation that the Bank recognises the reforms going on in Kenya and the country's ability to cope with the recession.