Lamu Port Southern Sudan-Ethiopia Transport Corridor

Project Description

Champion : H.E. President Uhuru Kenyatta of Kenya

Description : The project will entail various transport node developments

Estimated total cost : Sh2.7 trillion

RECs : COMESA, CEN-SAD, EAC, IGAD

Countries : South Sudan, Ethiopia, Uganda and Kenya

Background : The LAPSSET Corridor Project is a Kenya Vision 2030 flagship project and is the first large, high impact infrastructure project initiated by the Government of Kenya without external assistance. This project is the single largest project of its nature in Eastern Africa, and LAPSSET will become Kenya’s second largest transport corridor once the project has been completed.

Among others, the project will entail the following:

• A port at Manda Bay, Lamu

• A standard gauge railway line to Juba in South Sudan and Addis Ababa in Ethiopia

• Road network

• Oil pipelines (Southern Sudan and Ethiopia)

• An oil refinery at Bargoni, Kenya

• Three airports

• Three resort cities.

The planned investment resource is equivalent to half of Kenya’s GDP (core investment). In fact, conservative feasibility statistics show that the project will inject between 2 per cent and 3 per cent of GDP into the economy.

The LAPSSET Corridor Project will make a tremendous contribution the Kenya’s economic growth, with projections ranging between 8 per cent and 10 per cent of GDP. The project components are spread over a large part of Kenya and will open up the northern parts of the country and relieve strain on the Mombasa Port.

 

Current Status: The LAPSSET Transport Corridor Project is the latest addition to the PICI project list. Studies on LAPSSET Corridor were commissioned and completed in November 2011. The Studies concluded that each component of the project had good economic rate of returns. The construction of the LAPSSET plaza is completed as well as LAMU Port police station. Electric power has been delivered from Rabai to Lamu port to power the infrastructure. The Contractor for the construction of the first three berths (out of 32) is on site. The berths are expected to be completed in 2019 at an estimated cost of US$412Million. The Isiolo- Moyale road construction of about 505Km is expected to be completed in 2016. After construction, the berths will be operated by a private concession and the construction of the remaining berths will also be based on PPPs. The Economic Internal Rate of Return (EIRR) anticipated at 21.6 per cent complemented by crude oil anticipations in Kenya and Uganda. In Kenya, WB and AfDB are financing some of the projects.

Contact: 

NEPAD Agency

Dr John Tambi

Senior Advisor – Transport Infrastructure and PICI Coordinator

johnt@nepad.org

Office: +27 11 256 3678 Mobile: +27 83 257 1828

Country Focal Point Kenya

Mr Daniel Osiemo Director of Programmes, NEPAD Kenya Secretariat

daniel.osiemo@nepadkenya.org 

Tel: +254 20 2733735/38/42 

Mr Silvester Kasuku Director-General,    

LAPSSET Corridor Development Authority, the Presidency

kasukus@yahoo.com 

Tel:+254 20 2219098