LAMU PORTManda Bay, Lamu County
Countdown to the completion of the 1st Berth
A new 32 Berth port at Lamu (Kenya)
- Lamu Port Project, with 32 Deep Sea Berths estimated to cost US$ 5 Billion. The cost for the Short-term Plan, including the First Three Berths in the Urgent Plan of Lamu Port, is estimated to be US$ 689 million, taking account of dredging and reclamation; construction of berths and yards; construction of revetment, causeway and road; construction of buildings and utilities; procurement of equipment and tug boats; and others.
- The EIRR for the Long-term Lamu Port Development Plan is assessed to be 23.4%. The cargo-wise EIRRs are 28.5%, 24.5% and 17.1% for general cargo, container cargo and bulk cargo, respectively. All of these figures indicate that the Lamu Port Project is viable economically in consideration of the opportunity cost of 12% p.a.
- The 1st 3 Berths will be fully financed by the Government of Kenya.
- The remaining 29 Berths will be financed by Private Sector Investors
The construction of the 1st three berths is ongoing with delivery times of 24 months of the 1st berth and 45 months for the next two at a cost of 480 Million US$. To facilitate this, several preliminary and support infrastructure such as the Port headquarters, Port Police Station, Electric Power Connection to the National Grid and Water Reticulation Network were undertaken and are complete. Construction of the Port Management Housing Scheme is also ongoing. At the same time the government is structuring the remaining 29 berths to be concessioned to the private sector for construction and operations.
- Detailed Engineering Studies carried out for the 1st 3 berths which are now classified as a priority project for off-take of the rest of the project components.
- Environmental and Social Impact Assessment study completed and approved in 2014
- Construction completed at the Port site for the following preliminary facilities: LAPSSET Plaza (Port Headquarters), Port Police station, Electric Power connection to the national grid, and water supply to the port.
- Port Housing for management and security is still under construction with an estimated completion rate of 55%
- The contract for the construction of the 1st 3 berths was signed on the 1st of August 2014 with a Chinese EPC. The first berth is expected to be completed by 2018 while the remaining two are to be completed by 2020.
- The Government plans to concession the 1st 3 berths to the Private Sector for operations in 2018. The remaining 29 berths will be concessioned to the Private Sector for both construction and operation.
- Demand for port services in East Africa is on the rise and is expected to outstrip capacity in Kenya by 2022
- The Authority is currently in the process of procuring the services of a Transaction Adviser to package the Lamu Port for Investments.
- Dredging began in October 2016 and is currently ongoing.