Buoyed by recent Lamu Port construction developments, Amb. Dr. Muthaura has expressed optimism that the transformative and game- changing Vision 2030 flagship project will be attained within scheduled time.
Speaking during a media briefing session on the official contract signing of the first 3 berths of the Lamu Port Project, Amb. Dr. Muthaura said it is a timely step by the government to create a platform for the engagement of the private sector in the LAPSSET construction through Public-Private Partnerships.
“Today is indicative of the government’s commitment to the opening up of vast parts of our country and also presents a realistic and solid opportunity for the delivery of the LAPSSET projects while conferring the country a lifeline for economic growth support,” he said.
While assuring of the LAPSSET implementation progress, Amb. Dr. Muthaura said initial project disbursements have been funded and that work will commence next month through M/s China Communication Construction Company and Supervision Consultants Yashoon Engineering, the contactors of the 3 berths.
It is estimated that the 3 Berths of the Lamu Port will end in 2019, hastening the construction of the other Twenty Nine (29) berths.
And added: “As envisioned under the Vision 2030 Enablers and Macro pillar, the commencement of the construction of the first 3 berths of Lamu Port Project will facilitate the delivery of materials for the construction of the first three berths; the crude oil pipeline, the coal plant in Lamu and Lamu-Garissa-Isiolo Road among other projects.”
Such progress, the LCDA Board Chairman noted is geared at positioning the country as the transport and logistics hub in the region while integrating unexploited parts of the country which has relied on the Northern Corridor to sustain itself through revenue generation.
Within the last three years, the LAPSSET Corridor Development has successfully managed to co-ordinate the rollout of key facilities at the Lamu Port including building the Lamu Port, Lamu Port Police and survey for the Port area.
“As the Chairman of the Board for LAPSSET corridor development authority, am glad to note much progress has been made in the various components. We are 98 per cent complete with key LAPPSET activities and fulfilled the conditions preceding the LAPSSET implementation including allocation of funds for compensating the local communities whose lands have been taken by the port project site,” said Amb. Dr. Muthaura.
He hailed the LAPSSET Corridor projects as being positioned to bring economic benefits in less than ten years to both the country and the region, equivalent to those experienced since independence.
“While the LAPSSET Corridor Program requires substantial amounts of resources, feasibility studies done show great economic viability with most of the project components registering High Economic Interest Rates of Return of between 17 per cent and 23.4 per cent compared to acceptable industry minimum standard of 10 per cent for infrastructure projects,” added the Chairman.
Speaking on the sidelines of the event the LAPSSET Corridor Development Authority Managing Director Silvestre Kasuku reiterated that the project will not only improve Kenya’s economy in general but also improve the lives of the people along the Corridor with Education being one of the major keys for development, through youth scholarships.
“The Lamu youth have an opportunity to develop their capacity in terms of skills which will prepare the youths for the future job opportunities along the corridor upon implementation of the projects,” said Kasuku.
The seven project components of the LAPSSET Corridor Program have a budget estimated at Kshs. 2 Trillion in construction costs. The Lamu Port with its 32 berths alone will cost approximately USD 3.1 Million, the railway USD 7.1 Million while the Crude oil pipeline will cost a further USD 5 Million.
The LAPPSET is one of the major Vision 2030 flagship projects that will ultimately culminate in the attainment of transforming Kenya into a middle income, globally competitive and industrializing country with a high quality of life in the next 16 years.
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