LAPSSET elevated to continental infrastructural project status

NAIROBI, KENYA:  The Vision 2030 transport infrastructural project, the LAPSSET Corridor Programme status has moved a notch higher in the African Union (AU) Commissions priority with admission as a Presidential Infrastructure Champion Initiative (PICI) project. 

Endorsed by the Programme for the Infrastructural Development of Africa (PIDA), a  $360-billion initiative by the African Development Bank, African Union Commission and New Partnership for Africa’s Development (Nepad), LAPSSET Corridor Programme joins over 51 development projects identified for development by 2040, touted to enable improved interconnection and integration while bridging the continent’s extensive infrastructure gap. 

The project will enjoy the attention of the Heads of State from seven African countries on NEPAD’s Heads of State and Government Orientation Committee (HSGOC), required to account on progress and bottlenecks after every six months. 

It will have the Heads of State in the committee assigned responsibility and accountability for implementation of the various components of the LAPSSET project, in collaboration with Programme for the Infrastructural Development of Africa (PIDA). 

The $24.5 billion worth LAPSSET encompasses seven components including the 32 berths Lamu Port; Standard Gauge Railway Line, Crude Oil Pipeline, Product Oil Refinery, Resort Cities and Airports between Kenya, Ethiopia, South Sudan while creating a trans-boundary link between Lamu and Doula, Cameroon, to the coast of the Atlantic Ocean. 

The new status also provides incentive for governments involved in LAPSSET and their implementing agencies to access financing and establish Public-Private Partnerships agreements for project advancement. Development of the $3.1 billion Lamu Port has been designated as one of 47 priority public private partnership (PPP) projects by the PPP-Unit within the National Treasury. 

Speaking following communique from NEPAD Secretariat, LAPSSET Corridor Development Authority CEO Silvestre Kasuku expressed optimism that the transformative Vision 2030 flagship project will be attained within scheduled time. 

“The achievement is indicative of the government’s commitment to implement the project and open up of vast parts of our country and region 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. 

Separately, Prof. Wainaina Gituro, Vision 2030 Delivery Secretariat Ag. Director General hailed the LAPSSET Corridor projects The LAPSSET 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. 

And added “We as Kenyans should be excited that the world is vindicating our development plan as Kenya’s global competitiveness is now on a growth trajectory, effectively confirming that Vision 2030 is happening,” Prof. Gituro said.

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. 

Further, the government has signed a contract of construction of the first 3 berths of the Lamu Port Project, with Ms China Communication Construction Company and Supervision Consultants Yashoon Engineering and allocated funds for compensation of local communities whose lands have been taken by the port project site. 

The LAPSSET Corridor project is expected to bring economic benefits in less than ten years to both the country and the region. According to feasibility studies done, most LAPSSET project components will register High Economic Interest Rates of Return (EIRR) of between 17 per cent and 23.4 per cent compared to acceptable industry minimum standard of 10 per cent for infrastructure projects. 

The project will open up 70 per cent of the country that has been un-invested in since independence tripling the investment space in the country while injecting between 2 per cent-3 per cent of GDP into the economy from the core projects alone, and 5 per cent-8 per cent of the GDP through attracted and generated investments therefore maintaining a sustained economic growth for the coming years. 

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.