The Lamu Port South Sudan Ethiopia transport corridor (Lapsset) project has received a major impetus after a consortium of international investors led by the Development Bank of South Africa (DBSA) said they will help finance the project.
State House says the consortium has already agreed to inject over ($1.9 billion) to the Lapsset project in the next few months.
This will be a great boost to the project as recently it has slowed its momentum as there has been insufficient funding. The investors are interested in building three berths at the Lamu Port and financing construction of the 537-km Lamu-Garissa-Isiolo road.
State House spokesman Manoah Esipisu said the Kenyan and South African governments had signed an MOU on the Sh2.5 trillion projects during the visit by President Jacob Zuma last week.
The DBSA is wholly owned by the South African government, and has arranged funding for projects in transport, energy, water and ICT sectors.
The same consortium would look to fund construction of the Lamu-Garissa-Isiolo road under the annuity programme at a cost of Sh71 billion ($700 million),” said Esipisu.
The Lapsset project, which was commissioned by former President Mwai Kibaki in 2012, is expected to open up Kenya’s northern frontier for more trade and investment, and has been identified as the long-term conduit for Kenya’s oil exports through a crude pipeline linking Lamu to the oilfields in Turkana County.
The project has been hit by delays due to financial problems after several financing countries withdrew.
