NAIROBI (Xinhua) --
Kenya on Wednesday signed a deal to
construct a highway to link the country to Ethiopia and
Macharia, Cabinet Secretary in the Ministry of
Transport, told a media briefing in Nairobi that the
government has signed a commercial agreement with Lamu
Road Consortium (LRC) comprising of South African firm,
Group Five Proprietary Limited and the Development Bank
of Southern Africa to finance the construction of the
530 km Lamu-Garissa-Isiolo road at a cost of 620 million
“The road is
the first section of the Lamu Port-South Sudan-Ethiopia
Transport (LAPSSET) corridor that seeks to link Kenya to
the landlocked countries in East Africa,” Macharia said.
projected under the proposed commercial contract that
the construction of the 530 km highway will commence in
mid-2018 and take four years to complete,” he added.
last two years, the LRC has been undertaking studies and
presented a privately initiated investment proposal
investment to the government for the development of
said that the road will be undertaken under a
public-private-partnership where LRC will finance
construction of the road and charge roads users a fee
for a period of 25 years to recoup their investment.
Macharia said, the road will revert to government
ownership. He said that the government has resorted to
private sector financing of infrastructure projects due
to limited funds.
into the private sector, funds will be able to construct
roads faster rather than waiting for availability of
public funds,” he added.
National Highway Authority (KeNHA) has been mandated to
plan, design and develop the highway component of the
LAPSSET Corridor project, which covers approximately