News Column

East African States to Jointly Finance the LAPSSET Project

August 1, 2014

Julius Otieno

LAPSSET Corridor project will be financed by all the four nations taking part in the project, East Africa heads of states have said.

The Lamu Port with 32 projected berths will cost Sh87.8 billion.

In a statement sent to newsrooms yesterday, leaders said the project has seven components that require a budget of Sh2 trillion.

They held a Summit of Heads of State and Government at State House in Nairobi.

"With the large sums involved, it was clear that a joint approach that is innovative will be required for implementation," says the statement.

Kenya, Uganda, Ethiopia and South Sudan are involved in the project.

"We sought to learn from the African Development Bank'sAfrica50 Infrastructure Fund approach, and how our joint efforts can help make a compelling business case to private sector players,"said the leaders.

The leaders said the decision to jointly finance the project has been informed by the on coming Africa-USA Summit on August 4-7.

They said this is a continuation of similar engagements they have been holding with investors from across the Middle East and the Indian Ocean Rim.

"Lapsset is an integrated project that will provide regional economic integration," the leaders said.

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Source: AllAfrica

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