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China Seems Set to Win Kshs1.2 trillion Project in Kenya
The Chinese seem set to start work on a Shs1.2 trillion ($16 billion) on Kenya’s second transport corridor, which when fully completed is expected to have far reaching impact on economies all over Africa. The corridor consists of a port, a railway line, a superhighway and at least three super modern cities along the way.
The port with 22 berths will be built at Lamu, one of Kenya’s most ancient and colorful towns with centuries of trade connections with China. It will have with a harbor of 1,000 acres, and when completed, it will be the largest port in East Africa.
Railway line
The railway line will originate at Lamu, pass through Garissa, Isiolo,Maralal and Ludwar to end at Lokichoggio from where it will eventually link with countries in Western Africa. At Isiolo it will branch to Juba in Southern Sudan, Addis Ababa in Ethiopia and Nairobi, the capital city of Kenya.
A fiber optic infrastructure to link the entire corridor will also be laid along with the construction of international airports in Lamu, Isiolo and Lokichoggio.
The mega project –costing more that the entire budget of Kenya (the highest so far has been $ 11.3 billion) was first dreamed up in 1972 but was shelved after a feasibility study said it was not viable.
In order to improve its viability this time, the government has added a variety of components to the project including an oil refinery and a pipeline linking Lamu with the oil fields of Southern Sudan. Southern Sudan is expected to use the mega project to refine and export its oil.
Qatar Controversy
Even in its new version, the project’s implementation hit a snag following the controversial offer by government of Qatar to finance the port aspect of the project in return for a lease of 100,000 of land at the Tana Delta to grow food for its people.
Apart from the Chinese investors from America, India and the United Arab Emirates have also expressed interest in the project. Each of them has been interested in certain aspects of the project, while it seems Chinese investors want to be awarded the entire contract which it suggests should start with the construction of the port at Lamu.
In a recent visit to China, President Mwai Kibaki said the construction of the Lamu port was high priority for the Kenya government. Both Mr. Kibaki and the Chinese leader Hu Jinta appealed to Chinese investors to invest more in Kenya. And China gave Kenya a grant of Shs 1.2 billion for the project some of which, it is understood, will be used to pay for a fresh feasibility study of the Lamu port.
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