NAIROBI: Construction of the first three berths at Kenya’s second seaport in Lamu has been sluggish due to funding problems, Kenya Ports Authority has said.
According to KPA, Treasury has been releasing money allocated for the project intermittently, delaying works at the site.
China Communication Construction Company which signed a $478.9 million (Sh48.8 billion) deal in August last year is yet to start work, the Lamu county government confirmed yesterday.
“Construction of the three berths is ongoing but there has been a slow down. The pace depends on flow of funds from Treasury. Ours is to implement the project,” Ndua said during the KPA media workshop which ended on Tuesday.
He however expressed confidence that the project will pick up, as the port headquarters, police station and other support infrastructure are already in place.
Lamu residents and the county government have quesioned the government’s commitment to the project, launched by former President Mwai Kibaki in 2012.
A Lamu county official, who requested anonymity, told the Star the port project has stalled.
Development of the entire $23 billion (Sh2.3 trillion) Lamu Port-Southern Sudan-Ethiopia Transport Corridor project has also been stalled as a result of new infrastructure projects in Ethiopia, Uganda and Tanzania.
According to transport experts, Ethiopia is now more focused on the 700 km Ethiopia (Addis Ababa)-Djibouti railway line which is under construction.
The $4billion (Sh408.2 billion) project is expected to increase Djibouti port capacity by Ethiopia which facilitates 80 per cent of its international trade.
Uganda is also considering an alternative crude oil pipeline route, having signed an agreement with Tanzania for feasibility studies of an oil pipeline from Hoima to Tanzania’s Tanga port.
This could derail the 1,500 kilometre Hoima-Lokichar-Lamu crude oil pipeline deal between Kenya and Uganda.
Vision 2030 acting director general Gituro Wainaina however last month said Kenya will not be deterred by other regional projects.
Treasury CS Henry Rotich also said Kenya is still pursuing the crude oil pipeline deal.
President Uhuru has postponed thrice the launch of the Berth construction with the latest being on May 25.
The LAPSSET project includes a 32 berths port at Manda Bay, Standard Gauge Railway line to Juba and Addis Ababa, road network, oil pipelines (Southern Sudan and Ethiopia), an oil refinery, three airports and resort cities at Lamu, Isiolo and Lake Turkana.
