Our African offices report recent signs that two projects with an uncertain history might at last be gathering momentum.

The Lamu Port Southern Sudan Ethiopia Transport project, better known as LAPSSET has been on the horizon in one form or another since 1975. The project is ambitious and involves the following components:

  • A port at Manda Bay in Lamu
  • 1700kms of standard gauge railway line from Manda Bay to Juba (the capital of South Sudan)
  • An extensive supporting road network
  • Oil pipelines (connecting with Southern Sudan and Ethiopia)
  • An oil refinery at the coastal settlement of Bargoni
  • Three airports (in Lamu , Isiolo and Lokichoggio)
  • Three resort cities (Lamu, Isiolo and Lake Turkana shores)

The anticipated cost has been revised a number of times but presently it is considered that it will be in the region of Sh2 trillion (USD 23 billion).

The development is one of the flagship "Enablers & Macro Projects", which form part of Kenya's Vision 2030. It is expected that the 1500kms of track on the Kenyan side (from Lamu to Nakodok, on the Kenyan/Sudan border) will be complete in 2015.

In March this year the agreement between Ethiopia and Kenya was signed by Kenyan Transport minister Amos Kimunya and his Ethiopian counterpart Deriba Kuma. The ground breaking ceremony took place the next day and was attended by the Ethiopian and Kenyan heads of state.

The project has been dogged by issues of bureaucracy, corruption and environmental protest. However, it is clear that the project is generating critical mass in terms of political willpower to finish the project. In June of this year the Kenyan finance minister called on the Chinese government to agree financial support in the same manner as the loan agreed with Kenya for the Olkaria Geothermal Drilling Project.

Such pleas may not necessarily fall on unsympathetic ears. In September the Chinese government agreed on a TSZ66 billion (USD 42 million) loan to the Tanzania Zambia Railway Authority (TAZARA). This is the latest implementation of support flowing from fifteen Economic Protocols agreed by the Chinese, Tanzanian and Zambian governments.

The money is expected to be used to boost TAZARA operations, including the rehabilitation of 42 passenger coaches, supply of four new mainline locomotives, two shunting locomotives and various rescue and lifting equipment.

Approximately 30,000 wooden sleepers, along with track trolleys and assorted spare parts will also be supplied. Part of the support will also include training staff and the attachment of Chinese experts to TAZARA.

It is clear that support exists for African rail. It will be interesting to see how finance for these projects develops as the global economy shifts weight and local issues, such as social unrest, resolve themselves.

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