The Government will invite bids from investors interested in the construction of the crude oil pipeline under the Lamu Port Southern Sudan-Ethiopia Transport (Lapsset) project in the next five months.
The actual construction of the pipeline set to run between the port of Lamu, Turkana, Uganda and South Sudan oil basins, is expected to start before tend of next year.
Lapsset Corridor Development Authority Director General Silvester Kasuku said they were carrying out preliminary engineering designs and feasibility studies. "The design and feasibility studies will take five months, after which Government will place an engineering procurement and construction tender for crude oil pipeline," said Mr Kasuku at Nairobi hotel yesterday.
This was during a breakfasting meeting with the Kenya Private Sector Alliance. Kasuku confirmed that other activities such as seeking transaction advisory services is ongoing and that the feasibility studies for the construction of the railway line from Lamu to South Sudan has also started.
China Civil Engineering Construction Corporation is undertaking the feasibility studies of the construction of the railway in an exercise that will take five months. "Work on the preliminary engineering designs for the construction of the road is ongoing and is expected to conclude mid 2015 so that tender for the construction of the same can be awarded by the end of the 2015," he said.
Sources of funding
He said the transaction advisor will assist in structuring of the investment and equally advise on how the investors will be engaged as well as identify the sources of funding to be expended. Government plans to source for funds from the stock market as well as other strategic investors.
During the recent investor meeting at the KICC, Nairobi, President Uhuru Kenyatta appealed to international investors to assist Kenya achieve its goals and spur growth. Investors were apprehensive that the law guaranteeing them 40 per cent of the works is not specific.
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