The grant is set to cater for advisory services and technical support in developing a feasible plan for the port.
The funds that was offered through AfDB’s New Partnership for Africa’s Development Infrastructure Project Preparation Facility, will position the proposed Lamu port as an attractive venture for big investors.
Lamu port has 32 berths whose construction cost is approximated at US$ 5bn and to break it down; the cost for the first phase is estimated to be US$ 670m whereby the amount is expected to cover dredging and reclamation, construction of berths and yards, construction of revetment, causeway and road, construction of buildings and utilities and procurement of equipment and tug boats among other things.
Construction of the first three berths is being funded by the Kenyan government while the remaining 29 berths will be financed through a public-private partnership under the build-operate-transfer model.
Lapsset authority CEO Silvester Kasuku confirmed the reports and said that the government is calling on the private sector to fund the project which will see the country have a second major sea port at Lamu.
“Lamu Port has an economic internal rate of return for the long-term development plan of 23.4 per cent, the projected demand forecast for freight and passengers for the years 2020 and 2030 illustrate that the total dry cargo throughput at Lamu port would be 13.5 million tonnes by 2020, and 23.9 million tonnes by 2030,” he said.
Lapsset is anticipating to lease the first berth of the project to the private sector by end of 2018.
The construction of the mega port headquarters and port police station are already complete with the electric power connection to the national grid and water reticulation networks in place.