× Business BUSINESS MOTORING SHIPPING & LOGISTICS DR PESA FINANCIAL STANDARD Digital News Videos Health & Science Lifestyle Opinion Education Columnists Moi Cabinets Arts & Culture Fact Check Podcasts E-Paper Lifestyle & Entertainment Nairobian Entertainment Eve Woman Travelog TV Stations KTN Home KTN News BTV KTN Farmers TV Radio Stations Radio Maisha Spice FM Vybez Radio Enterprise VAS E-Learning Digger Classified Jobs Games Crosswords Sudoku The Standard Group Corporate Contact Us Rate Card Vacancies DCX O.M Portal Corporate Email RMS
×

Kenya Ports Authority (KPA) says Lamu Port needs Sh3b to unlock construction stalemate

BUSINESS
By Lee Mwiti | May 17th 2016 | 2 min read
By Lee Mwiti | May 17th 2016
BUSINESS

The Lamu Port project requires an additional Sh3 billion to ensure construction proceeds to completion. The project is already running behind schedule by two years.

Kenya Ports Authority (KPA) Board Chairman Marsden Madoka, who was speaking during the board’s visit to the site of the port, acknowledged that delays in paying the project’s Chinese contractor had slowed progress.

The Government in 2013 awarded a Sh48.6 billion tender to Chinese Communication Construction Company to build four berths at the port in 45 months’ time.

Mr Madoka, however, expressed optimism that the Government would provide the funding required to jumpstart the project.

“The Lamu Port project is a Sh160.8 billion investment that is so far two per cent complete. Most of the work has been on site preparation,” he said.

He said the board’s site visit had illustrated the importance of the project, in a move to actualise the Lamu Port-South Sudan-Ethiopia Transport (Lapsset) Corridor.

Madoka said despite the payment delays, the current contractor was committed to completing the first berth by 2018.

The general manager in charge of infrastructure development at KPA, Abdullahi Samatar, said the authority would ensure the first berth was unveiled in the next two years.

He, however, added that any further delays in funding the project could lead to expensive claims against the government by the contractor.

“Since the contractor has already committed substantial resources, in terms of personnel and monetary resources, in building the site from the ground up, further rescheduling may lead to the project incurring extra costs, which will include the money needed to keep the contractor around, without him doing any work,” said Mr Samatar.

The Chinese firm currently employs 100 local and 20 Chinese workers.

Contrary to Madoka’s projections, Chinese Communication’s deputy project co-ordinator, Gallon Zhang, said for berth construction to keep going, his firm would need Sh10 billion immediately to make necessary purchases.

Share this story
KRA turns sights on car yards in sting operation
KRA launched a sting operation that was expected to seize cars that had been irregularly imported into the country, including those diverted while in transit to neighbouring countries.
China rejected Kenya's request for Sh32.8b debt moratorium
China is Kenya’s largest bilateral lender with an outstanding debt of Sh692 billion.
.
RECOMMENDED NEWS
Feedback