📋 Tender Overview
Scope :
Kenya has announced its plans to commence the construction of a $13.8bn high-speed electric railway project that will connect its Lamu port to South Sudan and Ethiopia, reported Bloomberg.
Construction of this railway project, which is part of the wider Lamu Port-South Sudan-Ethiopia Transport (LAPSSET) corridor plan, is expected to start in 2025.
The LAPSSET Corridor Development Authority is responsible for this railway project.
This 3,000km standard-gauge railway will connect the new port to Isiolo and Nairobi in Kenya, as well as to Ethiopia’s Addis Ababa and Sudan’s Juba.
The railway project is estimated to have an economic internal rate of return of more than 12%.
Kenya is raising $9m from the African Union to undertake extensive feasibility and technical research for the development.
This corridor is claimed to connect countries with a combined economic output of $233bn and a population of approximately 200 million people.
Aside from the single-track rail, the LAPSSET corridor features oil pipelines, a refinery, a power plant, roads, and airports costing a total of roughly $22bn.
