The World Bank has withdrawn its commitment to fund a toll road project in Nairobi, Kenya, until the consortium that won the construction contract improves its compliance and training procedures.

The issues were raised following the completion of a detailed review where the bank found that the systems and approach to compliance procedures were not meeting the its standards.

However, the bank said it would be prepared to finance a concession undertaken by Austria-based Strabag, on condition that Strabag agrees to expand its integrity compliance procedures and training programmes to cover the company more completely.

In November 2007, the Kenyan Government agreed to work with Strabag and Housing and Construction Holding Company to design, construct, finance and operate a 106km section of the proposed NTR project, on a 30-year concessional basis.

In a separate statement, Strabag said it is prepared to continue work on the project immediately, and will be required to sign a concession contract with Kenya and then start the due diligence process with the lending institutions, which will provide the financing for the project.

If no further delays occur, financial close of the project can be expected for September this year and the construction work can begin by October 2011.