Jubilee Development - Chinese Merchant Port Group offers $2.5 billion to Finance, build Lamu Port special economic, manufacturing and industrial zone

News & Politics
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[SIZE=6]Chinese company close to Sh250 billion Lamu Port special economic zone deal[/SIZE]
MONDAY, AUGUST 5, 2019 11:36

BY EDWIN MUTAI

A Chinese firm is angling for the proposed Sh250 billion Lamu Special Economic Zone (SEZ) project. Three principal secretaries hold the key to a decision on whether or not the proposed multi billion usa dollars project will be handed to the Chinese firm, the Treasury has said.

The government says it has received a Privately Initiated Investment Proposal (PIIP) from China Merchants Port Group Company Limited (CMPort) for development of the Lamu SEZ. The PIIP has three components that include the construction and management of berths one to three of Lamu Port, refurbishment of berths 11 to 14 of the Port of Mombasa, future investments of berths 23 of the port of Mombasa and development of New Lamu Industrial City (NLIC).

The Kenya Vision 2030 Delivery Secretariat last week told Parliament that a technical report on the PIIP has been submitted to principal secretaries for Industrialisation (Chris Kiptoo), Transport (Esther Koimett) and Infrastructure (Julius Korir) for onward transmission to the Cabinet Secretaries Steering Committee (CSSC) which will make a final decision.

Veronica Okoth, the director for economic and macro pillar at the Vision 2030 Delivery Secretariat, told the Senate committee on Trade and Tourism that the CMPort proposal envisages the New Lamu Industrial City to include the mainland of Lamu and Manda Island with a total area of 213.60 square kilometres, out of which 30 square kilometres is required for the industrial zone.

‘Six major areas’

“There are six major areas, namely the port, logistics zone, industrial zone, ecological residential area, technology and education area, tourism and entertainment area; all of which will be consistently developed in the logic of port driving industries and logistics and in turn facilitating city growth,” Ms Okoth, who was accompanied by Benson Kimani, the director Economic Planning at The Treasury, told senators.

The committee chaired by Kirinyaga Senator Charles Kabiru had invited the Treasury and the Vision 2030 Delivery Secretariat to provide the implementation status of Kenya Vision 2030 flagship projects in the manufacturing sector.
The CSSC, which met on January 18, 2019 was constituted to consider the proposal.
She said the CSSC directed principal secretaries (PSs) in the respective dockets of Industrialisation, Transport and Infrastructure to initiate a technical review of the proposal.
“Following this, the Principal Secretaries appointed their staff to form a Technical Team with the mandate to review the proposal and give advice on the same. The Technical Report has been submitted to PS’s,” said Ms Okoth.

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This is not the one Toyota was making?

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Hii si ni Ile ile Treasury ya Rotich?

By now, Bw. Mkuki, you know that Shainaman is not here for philanthropic reasons. Mkikopa mtalipa, hadi kickbacks.

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Toyotsu a subsidiary of Toyota was rumoured to be considering building the Turkana-Lamu pipeline between 2009-2011. Well talk and doing are different things. That will now be financed and built by Tullow-Africa oil-Total.

Lamu Port special economic zone is right next to the port. The idea is that investors build a manufacturing and industrial export hub right next to the port. This serves three purposes.

  1. Create employment to all jobless youth in Lamu.
  2. Increase the country export goods that are shipped abroad.
  3. Utilize the port not just to import products but export it abroad as well.

Lamu SEZ master plan
[ATTACH=full]252727[/ATTACH][ATTACH=full]252728[/ATTACH][ATTACH=full]252729[/ATTACH]
This is the render of the proposed SEZ. Industrial, manufacturing, recreation, logistics and commercial district.
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[ATTACH=full]252731[/ATTACH]

China Merchant port is offering $2.5 billion of its own funds to build a factory city at Lamu SEZ. Its also wants to equip the 3 berths Lamu port with all the equipments, cranes and fund future expansion. This is serious money by PPP. More than the eurobond we took this year. If accepted Lamu will soon be the industrial capital of Kenya. How about that.

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If this project is well managed…along with dongo kundu and kisumu special economic zones…Kenya will be transformed completely. One can only hope.

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Uhuru should stand trial for corruption after vacating office. Asset recovery to go for Kenyatta’s family property.

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Did you have to open another handle @gashwin . We know your handwriting khasia.

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No its not a loan. We have not requested for one. Its a PIIP. Private investment proposal. Part of Lappset master plan is Lamu port special economic zone as I have explained above. Completely driven by private investment and funds. Well they have offered to invest. China Merchant is a big player, experienced and with a big financial muscle. I don’t think government will resist this offer. Build the factories already.

Yesterday Lamu 1st berth and 1.2kms of container yard was completed. Now CCCC has three months to complete the roads to the berth and utilities for it to he operation. Yesterday the first ship to sail into Lamu port posted it traffic manifest in China. In a few weeks it will be here.
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This is the longest berth from Alexandria to Durban. 400 meters berth and 1.2 kilometers container yard. 18 meters deep harbour. The start of many. Berth 2-3 will be completed on schedule in Dec 2020.
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Kenya Navy ships routinely dock at the berth
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that sounds good. i hope it transforms Lamu?

now what are we going to give up in return? do we face a situation like that in Tz where Magufuli refused?

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If the project goes through, it’s a complete game changer, saw the blue print some weeks ago

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Umekosea, I don’t have to create another handle to say what I have to say!

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I already explained this the last time. Bagamoyo port failed the feasibility study so the financier Oman sovereign funds pulled out leaving the Chinese builder to decide on their stand also. It failed feasibility study because there was no cargo volume to justify the build. Of all the cargo handled at Dar port, 60% terminate at Dar city itself. 40% is transported to the rest of Tz and its neighbouring countries. So building a second port close to Dar at bagomoyo didn’t make economic sense. It actually recommended expanding Dar port instead and the southern ports. Remember also they had the forgotten Tanga port in that vicinity. So the remaining partners the Chinese informed Tz government that for them to fund the port they needed guarantees or it wouldn’t work. That included not expanding Dar port and other small ports. Tz government sat on that decision for 3 years until megafools just said he stopped it but clearly that was the only sensible decision they could have done.

So what have we done not to suffer the same fate. Well it starts locally. Mombasa port registers 11% annual cargo growth for the last 13 years. Between now and next year Dec 2020 Mombasa kilindini port will handle 3 million tons more out of which that will be more 115,000 TEU’s containers. On average it take 2 days for a ship to wait to dock. If this berths has the cranes today and Lamu-Garsen-Malindi road project completed then it would have immediate business. Instead of ships waiting to dock in Mombasa others would be redirected to Lamu. This is why Lamu port is priority to us first. Its a second transport corridor to Kenya. In case of anything ships can use Lamu port and the economy will not halt. Secondly we have offered Ethiopia a 10 acres land for their own dry dock at the logistics hub. This is to serve south Ethiopia. All the ports that handle Ethiopia cargo in the past, present and future (Asmara Eritrea-Djibouti-Somaliland) are all hot temperature ports. Their chemical industry spend a lot in using refrigerated containers to cool their imports. A humid cooler port in Lamu will be welcomed. Ethiopia also wants as many ports as possible since the red sea is heavily militarised. Should a conflict start their economy can suffer greatly. Lamu port is far removed from Middle East rivalries that threatens shipping there. Lamu port is the shortest direct route for Juba south Sudan to the ocean. Build it, build the roads and they will not need an invitation to come. Lastly the Lappset corridor envisions north Kenya growth to spur use for the port. What President Uhuru has done right is to actualize SEZ build along the corridor so that the traffic actualized is both ways.

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excellent! we wait for it then and hope for the best. asante tena.

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Wacha tuka tafute mashamba lamu…