limanika wrote:josimar wrote:The business daily reports the finance for the project was advanced at 4.1 per cent and the government negotiated for a grace period of 10 years after which the repayment will be spread over 30 to 40 years.
http://www.businessdaily.../-/13ec8ta/-/index.html
Can Mukiha / a Wazuan well versed with economics theory do a cost-benefit analysis for this project?
Notes:
1. Assume 75% of the money advanced will go back to circulate in Chinese economy since all materials will be sourced from China, as well as 75% of the workers.
2. Assume Kenya will pay 17b*40 (680b) to China over a period of 40 years.
4. Assume 50% of all cargo destined for hinterland is transported via SGR
5. Assume project is to be funded by the 1.5% import duty newly levied on all imported goods
6. Assume the economic life of the railway is 100 years.
Waiting….
We can re-look at the estimates.
First, not all materials will be sourced from China. At the most pessimistic estimate, 50% of workers will be from China.
I think with technological advances, we can have economic life of the railway being 100 years. Maybe 50 years.