The Likoni Cable Express is a state-of-the-art multi-gondola cable car system linking both sides of the Likoni channel crossing. The innovative passenger transport project will be operating on daily basis with a journey time of 3-4 minutes. Tropos Limited and the sponsors of the project had signed an agreement with Kenya Ferry Services for the scheme. Accordingly, Austrian company Doppelmayr Group, dealing in ropeways, cable cars and ski lifts production was hired by the parties to develop the Likoni Cable Car system. C&C Construction Company was also to be in charge of erecting two 90-metre masts and constructing the landing stations for the cable car system. The scheme is being developed in 4 distinct phases:
The Approval phase
On this phase, the Consortium and Government agreed on terms and details on the Consortium’s exclusivity to construct and finance the scheme under the Public Private Partnership (PPP) Act. Conceptual scheme design and detailed feasibility was completed. A financial model and legal documentation were developed to help Government and the consortium understand risks in the scheme. An assessment of demand was also done to establish potential ridership and tariff structure for the scheme. Accordingly, the Concession Agreement finalized by the Government and Consortium will comprise the exclusive right for the Consortium to construct and operate the Likoni Cable Express for the agreed-upon 25 year Operation phase. The concession agreement also protects rights and obligations of the parties incase of contract termination.
The Development phase
On the phase, all detailed engineering and architectural design, sub-surface, and environmental testing will be completed. Furthermore, the final Government of Kenya scheme Support Letter will be concluded between the Consortium and Government. When all previously-mentioned final design work and testing completes, the scheme shall then be granted the necessary construction-related plan approvals for its groundbreaking. Simultaneously, during this stage any outstanding Conditions Precedent (CPs) items will complete, including the formal provision of any necessary scheme’s land rights, enabling it to achieve Financial Close. Both approval and development phases have already completed.
Construction phase
For an aerial cable system of such proposed size and configuration, it is expected the construction phase to conclude within 18-24 months.
Operation phase
The consortium is offered the exclusive right to operate the scheme for an agreed period of time able recover the initial investment costs and the operating costs generating a reasonable return for investors. The operations period will be 25 years after construction is done.
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Project Timeline.
2017.
December, Tropos Limited, a Nairobi-based aerial transit development company and the project’s sponsors, signed an agreement with Kenya Ferry Services to develop the project
2018.
The Sh5.8 billion scheme was approved by the Cabinet in August but failed to go on amid turf wars between the Kenya National Highways Authority and Kenya Ferry Services.
August 2021
The Kenyan Cabinet approved the Ksh4.1 billion ($40 million) Likoni Cable Express project construction to ease movement of passengers from Mombasa Island to the mainland. The Kenyan and Austrian companies, funding the project, will be expected to charge commuters a fee before giving the investment ownership to the government after 25 years.
November 2021
In early November, the National Land Commission (NLC) reserved a 0.4 hectares piece of land for the implementation of the project.
In a gazette notice, NLC chairman Gershom Otachi ordered the Kenya Ports Authority (KPA) to make use of the land within a period of 180 days failure to which it shall be reverted to the owners.
