US$350million oil pipeline in Kenya from Mombasa to Nairobi
Posted on :Monday , 27th July 2015
Kenya Pipeline Company has secured a $350million loan to invest in the construction of a new 450-kilometre oil pipeline in Kenya from Mombasa to Nairobi.
The state owned oil dispenser will move ahead to a 20 inch contemporary multi-product oil pipeline in Kenya to reinstate the more than 30 year old – 14 inch pipeline currently in use.
For the duration of the signing of the loan with a group of six banks, KPC acting managing director Flora Okoth alleged work is likely to be complete in eighteen months from the July 1 2014 contract signing date. Lebanese firm Zakhem International won the contract.
There are six local and international banks that do this.This are Citibank, , Rand Merchant Bank (a division of FirstRand Bank Limited London Branch) The Standard Chartered Bank, Commercial Bank of Africa, CFC Standbic and Co-operative Bank.
As Okoth speaks the contractor is on the ground procuring most of the items required for the project. The requirements of completion is eighteen months however, an extra or less is being looked at April 2016.
The payment period of the loan is 10 years. KPC will fund 30 per cent of the project plus is putting in $150 (Sh15.3 billion) in the Sh50.9 billion project..
Okoth continued saying that this will increase the product flow from the obtainable 730,000 liters to one million liters per hour. Once the lines are on, we will be taking off roughly four thousand trucks per day off the Mombasa-Nairobi route,
One of the prime profitable bank financing ever entered into by a Kenyan parastatal with no government guarantee is none other than the loan.
Chairman john Ngum said “KPC can be seen like a proxy for the government. It has a profitable track record and a strong asset base,
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