Project News

Kenya Opens Agency for Sh2.5tn Lamu Port Project

The agency will manage the implementation of the project on behalf of the State.

Updated on

April 2, 2013

Regional Heads of State lay the foundation stone for the Lamu port headquarters in March 2012. — Regional Heads of State lay the foundation stone for the Lamu port in March 2012. PHOTO | FILE

Kenya has set up an agency to oversee the implementation of the Sh2.5 trillion (US$29 billion) infrastructure project aimed at improving trade with Ethiopia and South Sudan.

The Lamu Port Southern Sudan Ethiopia Transport Corridor (Lapsset) Development Authority will manage the implementation of the project on behalf of the government, according to the outgoing President Mwai Kibaki.

“The headquarters of the authority shall be in Nairobi with field offices in Lamu, Isiolo, Lokichoggio, Marsabit, and Moyale,” Mr Kibaki said in a gazette notice.

It will be run by a director-general under an 11-member board that includes five State officials, five private sector representatives, and a chairman appointed by the President.

Lapsset project, a key component of the Vision 2030 economic blueprint, involves the construction of a new seaport at Manda, a standard gauge railway line to connect Kenya, Ethiopia, and South Sudan, a refinery, a pipeline to pump oil to South Sudan, resort cities and superhighways.

The tendering process for the construction work has already been completed and a contractor has been identified to start building the port.

Kenya and South Sudan have already kicked off a fresh bid to boost trade between them with the planned construction of a Sh87.5 billion highway to link the two countries.

Kenya’s Roads Minister Franklin Bett and his counterpart from South Sudan Gier Aluong last month said the two nations agreed to upgrade the 960km Eldoret-Juba road to international highway standards and construct a one-stop-border post at Nadapal as well as several road amenities.

“The two countries view the road as being critical in promoting cross-border trade and making it easy for landlocked South Sudan to transport goods destined for the country through the port of Mombasa,” they said in a statement.

‘‘The World Bank has agreed to play a coordinating and facilitating role in seeking syndicated financing for the project estimated to cost Sh85 billion,” the ministers said.

South Sudan is opening up its economy to trade with partners in eastern Africa in a bid to consolidate its growth after it successfully seceded from Sudan in July 2011.