Toyota proposes to build Lamu to South Sudan pipeline

What you need to know:

  • Manufacturer will also cover energy, agro-processing and production projects as part of public-private partnership engagements

Car maker, Toyota, has proposed to build an oil pipeline linking Lamu Port to South Sudan as part of the multi-billion shilling Lamu Port-Southern Sudan and-Ethiopia Transport Corridor (Lapsset) project.

The project, which was launched last month by the three countries in Lamu will involve construction of a new port in Lamu, a railway line to South Sudan and Ethiopia, a pipeline, refinery and resort cities in northern Kenya.

The proposal comes as government holds discussions with the auto maker to help accelerate projects under the Vision 2030 plan of which the Lapsset project is one.

Toyota through its trade, investment and logistics arm, Toyota Tsusho Corporation (TTC), will also cover energy, agro-processing and food production projects across the country in collaboration with the Vision 2030 secretariat.

“I am pleased to note that Toyota Tsusho Corporation and the Kenya Government through Vision 2030 are set to sign a memorandum of understanding (MOU) where Toyota will intensify investments in energy, logistics, and food production and processing,” said Vision 2030 director, Mugo Kibati in a statement.

Mr Kibati said TTC will also partner with the Japanese International Cooperation Agency to provide machinery and rice processing equipment to farmers in the rice-producing Mwea as part of the MOU.

The development signals the government’s efforts to engage the private sector and foreign investors in its infrastructure development through PPP arrangements to be anchored in the yet to be ratified Public-Private Partnership Bill 2011.

Ministry of Finance PS Joseph Kinyua said last week that the Bill will signed into law before the end of next month.

The government is working major Vision 2030 projects such as the Sh860 billion Konza City ICT Park and the Tatu City through PPP arrangements.

President Mwai Kibaki has recently held talks with other countries like China, urging them to identify viable projects they can undertake to help Kenya attain its development plans.