Mombasa Port. I predicted this one years ago.

[Simiyu22]

@johnpombe

SGR will serve Kenya for the next >100yrs and so drawing balance sheets at Yr2 and condemning the project doesnt make much sense. Many businesses need about 5yrs to break even.

Also just like the mombasa - nairobi road the SGR is not there to make a profit rather to facilitate movement of people and goods. A country MUST have public infrastructure like roads, railways and airports, water, sewerage etc maintained by tax payers and such infrastructure making profits is just an added advantage.

The failure to meet the debt payments will not be due to the port project, but due to the economy as a whole. The port project may be a decent idea, the economics are difficult.
And actually amazingly, it may be a good idea to let the Chinese take over the port. We may see some other development projects that way.
Here is an excerpt of a study what happened in Sri-Lanka:

"[I][B]Steep payments[/B][/I] on international sovereign bonds, which comprised nearly 40 percent of the country’s external debt, put Sirisena’s government in dire fiscal straits almost immediately. When Sirisena took office, Sri Lanka owed more to Japan, the World Bank, and the Asian Development Bank than to China. Of the $4.5 billion in debt service Sri Lanka would pay in 2017, only 5 percent was because of Hambantota. The Central Bank governors under both Rajapaksa and Sirisena do not agree on much, but they both told us that Hambantota, and Chinese finance in general, was not the source of the country’s financial distress.

There was also never a default. Colombo arranged a bailout from the International Monetary Fund, and decided to raise much-needed dollars by leasing out the underperforming Hambantota Port to an experienced company—just as the Canadians had recommended".

There Is No Chinese ‘Debt Trap’ - The Atlantic

[Sambamba]

@Simiyu22

The failure to meet the debt payments will not be due to the port project, but due to the economy as a whole. The port project may be a decent idea, the economics are difficult.
And actually amazingly, it may be a good idea to let the Chinese take over the port. We may see some other development projects that way.
Here is an excerp of a study what happened in Sri-Lanka:

"[I][B]Steep payments[/B][/I] on international sovereign bonds, which comprised nearly 40 percent of the country’s external debt, put Sirisena’s government in dire fiscal straits almost immediately. When Sirisena took office, Sri Lanka owed more to Japan, the World Bank, and the Asian Development Bank than to China. Of the $4.5 billion in debt service Sri Lanka would pay in 2017, only 5 percent was because of Hambantota. The Central Bank governors under both Rajapaksa and Sirisena do not agree on much, but they both told us that Hambantota, and Chinese finance in general, was not the source of the country’s financial distress.

There was also never a default. Colombo arranged a bailout from the International Monetary Fund, and decided to raise much-needed dollars by leasing out the underperforming Hambantota Port to an experienced company—just as the Canadians had recommended".

There Is No Chinese ‘Debt Trap’ - The Atlantic

good to see umeanza ku disabuse Western propaganda of Chinese debt trap diplomacy .That Atlantic article hurt so many feelings

[T.Vercetti]

@johnpombe

SGR will serve Kenya for the next >100yrs and so drawing balance sheets at Yr2 and condemning the project doesnt make much sense. Many businesses need about 5yrs to break even.

Also just like the mombasa - nairobi road the SGR is not there to make a profit rather to facilitate movement of people and goods. A country MUST have public infrastructure like roads, railways and airports, water, sewerage etc maintained by tax payers and such infrastructure making profits is just an added advantage.

This is not a small kiosk, this is a mega billion operation that employs hundreds possibly thousands of people.

There is nothing cheap in the rail business, everything is super expensive, complex and heavy.

For instance every railway station is in essence a small airport in need of hundreds of workers who must be paid monthly.

If you are a poor country you can’t afford these luxuries. There is nothing like “a country must have”…

Unaona Museveni aki-attempt kucheza na SGR?

[T.Vercetti]

@Sambamba

good to see umeanza ku disabuse Western propaganda of Chinese debt trap diplomacy .That Atlantic article hurt so many feelings

You think the people of Mombasa will take this lying down? This is how terrorism starts.

[Sambamba]

@T.Vercetti

You think the people of Mombasa will take this lying down? This is how terrorism starts.

that will be their decision .Hata Qing Dynasty walinyanganywa Hong Kong na hakuna kitu walifanya and the British returned it ikiwa a modern thriving city .
Wachukue Mombasa yote waifanye kama Shenzen

[T.Vercetti]

@Sambamba

that will be their decision .Hata Qing Dynasty walinyanganywa Hong Kong na hakuna kitu walifanya and the British returned it ikiwa a modern thriving city .
Wachukue Mombasa yote waifanye kama Shenzen

Hata Boko Haram walianza hivi unasema. The locals felt there is an invader on their land and their govt doesn’t care about them.

Wataanza na ku kidnap Chinese mmoja mmoja wanamchapa mapanga as a message to tell them to leave. Wakiona that doesn’t work they move to more advanced methods. Before you know it there will be militias all over the place trying to remove the invader.

And Hong Kong is different. It was largely controlled by locals. And as you can see the Hong Kongers don’t like how mainland China conducts business. It says a lot.

[Sambamba]

@T.Vercetti

Hata Boko Haram walianza hivi unasema. The locals felt there is an invader on their land and their govt doesn’t care about them.

Wataanza na ku kidnap Chinese mmoja mmoja wanamchapa mapanga as a message to tell them to leave. Wakiona that doesn’t work they move to more advanced methods. Before you know it there will be militias all over the place trying to remove the invader.

Lmao

@T.Vercetti

And Hong Kong is different. It was largely controlled by locals. And as you can see the Hong Kongers don’t like how mainland China conducts business. It says a lot.

More Lmao …Si usome tu historia kidogo .Hong Kong was firmly under British control and all the people in charge were whites .Hong Kong people unaona wakijifanya how they love the UK didnt even have the right to vote .

[Mwanakijiji]

@Gratified

Seriously tho?

The port,the railway are all interconnected.

What’s the connection between that and let’s say the Mountain? And who tf uses a mountain for collateral

The president should have given away resources from his region

[johnpombe]

@Mwanakijiji

The president should have given away resources from his region

Is SGR serving gatundu or mombasa?

[Mwanakijiji]

@munduism

I disagree with you totally. Yes SGR was grossly inflated but lets changanua the facts:

SGR is currently operational and making income (albeit at a loss). This means that it has a client base, has a management structure, has an accounting system, has an auditing office, etc.

The govt (by extension KR) is able to absorb the losses incurred by SGR. Nilisoma somewhere the operational losses are about 1B per month and a total of 21B loss for 3 years (2016-2019). Despite the losses the revenues have steadily increased over the years and they actually launched double containers. In addittion the local chinese company operating the SGR will handover the operations soon to KR and this will significantly cut down OPEX.

These and many other factors make SGR not to be a white elephant project. The fact that KPA makes significant revenue also makes it certain that the govt (ata ya Arror) will not allow such a vital infrastructure to fall into the hands of foreigners.

It would have been easy if our debt payment a year was not around 600 billion and soon 1 trillion.

[Mjuaji]

T Vercetti posted something that doesn’t put my intestines in twists ? Wow !

[Mwanakijiji]

@johnpombe

Is SGR serving gatundu or mombasa?

It’s serving Uhuru’s pocket

[uwesmake]

hizi deni tutalipa seamlessly kenya has money

[T.Vercetti]

@Sambamba

Lmao

More Lmao …Si usome tu historia kidogo .Hong Kong was firmly under British control and all the people in charge were whites .Hong Kong people unaona wakijifanya how they love the UK didnt even have the right to vote .

The Hong Kong situation like I said was different. On one hand wangeleta kichwa the British would’ve left in the 1960s, given them independence and the locals would’ve been left at the mercy of Chairman Mao who was butchering mainland Chinese proper. So…

(It was a case of better the devil you know.)

[Sambamba]

@T.Vercetti

The Hong Kong situation like I said was different. On one hand wangeleta kichwa the British would’ve left in the 1960s, given them independence and the locals would’ve been left at the mercy of Chairman Mao who was butchering mainland Chinese proper. So…

(It was a case of better the devil you know.)

why were the British appointing Governors and refusing to give Hong Kongers the right to vote their leaders up until the handover in 97 ?

[Simiyu22]

@johnpombe

Is SGR serving gatundu or mombasa?

Lake Nakuru, Mt.Kenya, Aberdares, …He should have given those.

[Simiyu22]

@Mjuaji

T Vercetti posted something that doesn’t put my intestines in twists ? Wow !

Whats that?

[Mjuaji]

@Simiyu22

Whats that?

He/She usually posts disgusting shit about pedophilia, gayism and other disgusting topics.

[T.Vercetti]

@Sambamba

why were the British appointing Governors and refusing to give Hong Kongers the right to vote their leaders up until the handover in 97 ?

Kwani huelewi the U.K was playing the role of a bodyguard against a very determined and vehemant CCP?

How do you hold elections in a state where China is trying to sabotage and field CCP candidates and bring in communist influence? This was the cold war era. There was no backing down to China or negotiating with China.

Hong Kongers were caught between a rock and a hard place. They still are.