Infrastructure
Chinese Firm Inks Sh18bn Deal for Lapsset Highway
The project seeks to improve the accessibility of Lamu Port.
China Communication Construction Company (CCCC) has signed a deal with Kenya for the construction of a highway that seeks to improve accessibility of Lamu Port and the proposed resort cities on the Lamu Port-South Sudan-Ethiopia-Transport (Lapsset) Corridor.
The multi-billion-shilling deal, which further cements the dominance of Chinese firms in the Kenyan infrastructure development scene, will involve the construction of Lamu-Ijara-Garissa road and related spur roads into all-weather gravel standard.
According to Kenya National Highways Authority (KeNHA), the project will be built in three stages, namely 257km Lamu-Ijara-Garissa section; 113km Hindi-Bodhei-Basuba-Kiunga section; and 83km Ijara-Hulugho Road, for Sh17.9 billion.
“The 453-kilometre project will be implemented at a cost of Sh17.9 billion, and will take 36 months to construct,” the roads agency said on Monday after signing the deal with CCCC.
The project will be funded by the Kenyan government through Development Vote.
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The first stage of the project will run from Lamu and extend towards the northern direction up to Garissa. It includes construction of spur roads from Bodhei to Kiunga. The works are located on the existing Hindi-Bodhei-Basuba-Kiunga (A11) road in Lamu County.
The segment, which is listed as the second stage of the project, starts at Bodhei Junction Centre and runs easterly to Kiunga. The third segment of the project starts at Ijara Centre and terminates at Hulugho Centre in Garissa County.
On completion, the Lamu-Ijara-Garissa Road will complement the 114-km Garsen-Witu-Lamu Road, which will be finalised by October.
The project, which was started in 2017, is 87% complete.
The Kenya Ports Authority chairman Joseph Kibwana said in a recent interview that the road will facilitate the movement of goods along the northern corridor to southern Ethiopia as the road linking Garissa and Moyale has already been tarmacked.
“Despite the budgetary constraints that the government is experiencing, funds are already being secured to ensure road works commence next month with a view of ensuring that full operationalisation and viability of the Lamu Port is realised,” Mr Kibwana said.
The signing of the deal came shortly after the United States issued a statement decrying wanton corruption in Kenya’s tendering system, saying the vice had locked out qualified American companies from undertaking infrastructure projects in the country.
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The US Trade Representative’s office alleged that some dishonest government officials in Kenya often manipulate tender bids to suit their interests and those of their associates.
“US firms have had limited success bidding on government tenders in Kenya. There are widespread reports that corruption often influences the outcome of public tenders,” the agency said, adding that foreign entities have been winning State tenders after associating with well-connected Kenyan firms.
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