State urges private sector to invest in multi-billion LAPSSET project

The newly constructed Isiolo airstrip. (Photo:File/Standard)

NAIROBI, KENYA: The government is calling upon private sector to take advantage of ongoing investment in the Lamu Port-South Sudan-Ethiopia Transport (LAPSSET) project to build profitable ventures in the region.

LAPSSET CEO Silvester Kasuku said government has laid ground by investing in business enablers such as energy, roads, airports, resort cities among others which should be taken advantage of by the private sector to grow economy.

“We are not just inviting you to partner with us, the State has financed the energy, ports, airports, and pipeline projects to set good ground for your businesses,” he said.

“We have created a platform as a form of concession to enable the private sector do business with us,” he added.

He said the government has in place required policies and laws in all components of LAPSSET for instance railways, port, energy, and resorts as a show of commitment in the project. He said the government has also put in place through the 2010 constitution laws to protect private businesses. “Within our laws, the Public Private Partnership Act, regulation and policy all which support private businesses are in place.”

The $25.5 billion project, known as the Lamu Port-South Sudan-Ethiopia Transport ( LAPSSET) project, is positioned to link landlocked countries South Sudan and Ethiopia to the Indian Ocean via Kenya and include a port, new roads, a railway and a pipeline.

Upon completion it is estimated to contribute between two to three per cent to the Kenya’s economy.

So far, the construction activities for various facilities at Lamu Port site are ongoing with progress for Lamu Port Building and Port Police and security facilities having achieved a completion rate of 95 Per Cent.

At the Power Sub Station, the Government has just completed the electric power connection for the Lamu Port of 220kV transmission line from Rabai through Malindi and Garsen to Lamu.

The 505km Isiolo-Moyale A2 Road costing approximately Ksh.46 Billion and being funded jointly by the African Development Bank, European Union and the Government of Kenya. It shall improve transport and logistics services between Addis Ababa, Lamu and Nairobi.