The Mombasa channel will to be dredged to 15 metres from 10, and its turning basin widened to accommodate 45,000-tonne ships. The port has been grappling with serious capacity problems as import volumes increased with steady regional economic growth.
The Kenyan treasury department has earmarked KES550 million (US$8.7 million) to finance dredging that should take two years. Delays have been caused by earlier attempts by Nairobi to single source the contractor.
The contract was to be awarded to Jan Denul, a Belgian firm that was said to have secured EUR8 million (US$11.7 million) from the Belgian government to finance the project. But the plan faced opposition from other interest parties who argued that competitive bidding would land Kenya a better deal.
Three firms, Belgium's Dredging International and Holland's Boskalis and Vanorb have since joined the bidding.