Kenya: Major infrastructure works including the construction of an oil pipeline linking the oil fields of Turkana to the planned Lamu port are expected to commence over the next one year.
Treasury Cabinet Secretary Henry Rotich said there are also plans to upgrade the Kisumu and Isiolo airports and to start building the transport corridor under the Lamu Port South Sudan Ethiopia Transport (Lapsset) project.
Rotich said the Government had already set aside funds for the commencement of construction works on the oil pipeline to transport crude oil from Turkana in the 2014/15 financial year. This is as the country gets ready to start production of oil that UK firm Tullow Oil has found in Turkana.
Tullow is yet to determine the exact amount of recoverable oil in the area but its initial estimates based on the wells that it has sunk place the resources at over a billion barrels. It has however in the recent past said it is already working with the Government on a production plan which would involve building of a pipeline.
“Through a private-public partnership, we are investing in a regional crude oil pipeline as part of the strategic positioning for its transportation business. We will, also under the same framework, develop the transport components of the Lapsset Corridor Project,” said Rotich.
Other major infrastructure projects whose financing Treasury has factored in the 2014/15 budget include the upgrade of the Kisumu and Isiolo airports as well as putting up of three new airports in Malindi, Mandera and Suneka. These are in addition to the near complete Terminal 4 and the planned greenfield terminal at the Jomo Kenyatta International Airport (JKIA).
SGR project
Rotich added that the Government is currently working out modalities of financing the bit between Nairobi and Malaba as well as the commuter train that would ply the JKIA-city centre route.
Rotich also said Treasury had allocated Sh22.9 billion for the completion of the Standard Gauge Railway from Mombasa to Nairobi, which is approximated to cost a total of Sh327 billion.
The JKIA commuter railway project would use the existing rail rights-of-way, land and stations within Nairobi and introduce new purpose-built locomotives and wagons.
It would also involve a new signalling system, rehabilitation of four existing stations and approximately 160km of the existing rail system within Nairobi and construction of around 5-7km of new rail tracks to the JKIA and 13 new stations, he said.
Rotich also announced that Treasury had allocated Sh41 billion which would go towards all ongoing road projects in the country.
The Transport ministry had earlier announced that all road construction projects, which had been scheduled for completion this year but stalled, would be completed in the 2014/2015 financial year.
The ministry had attributed the stalling to inadequate financing.
The cabinet secretary also said Treasury had allocated a further Sh42 billion for the construction of roads to neighbouring countries that it expects would enhance trade.
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It has also set aside more than Sh35 billion for the maintenance and repairs of new roads as well as the existing ones.
And, Treasury has also allocated Sh1 billion for decongestion of road junctions in Nairobi.
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