KENYA: Ethiopia Prime Minister Meles Zenawi and Kenyan President Mwai Kibaki sign documents clearing the way for construction of the multi-billion dollar Lamu port project in Kenya

Record ID: 362188

  • Title: KENYA: Ethiopia Prime Minister Meles Zenawi and Kenyan President Mwai Kibaki sign documents clearing the way for construction of the multi-billion dollar Lamu port project in Kenya
  • Date: 1st March 2012
  • Summary: LAMU, KENYA (FILE-SEPTEMBER 2011) (REUTERS) VARIOUS OF LAMU RESIDENTS PROTESTING PORT
  • Embargoed: 16th March 2012 12:00
  • Keywords:
  • Location: Kenya, Kenya
  • Country: Kenya
  • Topics: Politics
  • Reuters ID: LVA7BI3KWZL04SJB2B1367EJMLZI
  • Story Text: Preparations are underway on Kenya's Indian Ocean Island Lamu for a groundbreaking ceremony, marking the start of construction of a multi-billion dollar second port.
    The event, hosted by Kenya's president Mwai Kibaki and due to be attended by Ethiopia's Prime Minister Meles Zenawi and South Sudan's President Salva Kiir, will be held on Friday (March 02).
    The port has been in planning for several years but construction has been delayed in part because of protests by locals who oppose its construction.
    Due to be completed by 2016, the port is part of a wider project to create a second transport corridor in the east African nation, linking Lamu at the north coast with Ethiopia and newly independent South Sudan.
    When completed, its expected to be 20-berths wide and be connected to 1,710km of standard gauge railway and a 120,000 barrels per day refinery at Lamu.
    It is estimated that by 2030, 5.5 million tonnes of cargo per year will shift from Port Sudan to Lamu, 9.7 million tonnes from Djibouti and another 8.6 million tonnes will shift from Mombasa.
    The entire project will require a total investment of 22 billion US dollars by 2020 to be funded by public and private sector partnerships with the government.
    The Chinese and German governments have in the past expressed interest in financing the project or elements of it. Kenyan officials say private investors are also keen to get on board.
    Clearing the way for Friday's ceremony, President Kibaki signed a joint declaration with Prime Minister Zenawi on Thursday (March 02) outling future joint trade and infrastructure opportunities between the two nations.
    "The two leaders further expressed confidence that Lamu Port South Sudan - Ethiopia (LAPSSET) project will, once realised, unlock trade and investment opportunities between the two countries," Kenya's foreign minister Moses Wetangula told gathered delegates, adding: "The two leaders observed that although the volume of trade between our two countries has registered steady growth over the years, there remains a huge unexplored potential."
    But while Kenya, South Sudan and Ethiopia's political elite prepare to celebrate the start of construction, locals have said they plan mass protests to raise awareness of the fact many islanders do not want the project to go ahead.
    The port will be built at Manda Bay, an area of outstanding national beauty that is currently a popular tourist destination, marine reserve and heritage site.
    Locals fear the construction will have a huge impact on tourism and fishing, currently the main sources of income on the island.
    A dispute is also ongoing between the government and Lamu residents over land rights in Lamu and the surrounding area slated for construction.
    While title deeds are owned by the government, locals who have lived in the area for generations have argued, successfully in some cases, that they should be given compensation for land taken over for the port.
    A court case on the matter is still on going.
  • Copyright Holder: FILE REUTERS (CAN SELL)
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