Motor firm bids $5Bn to build the Juba-Lamu pipeline

Last Updated 14 years ago by Kenya Engineer

Japan-based Toyota Tsusho Corporation has placed a $5 billion bid to construct an oil pipeline linking the proposed Lamu port in Kenya with Juba in South Sudan.

This huge infrastructure project, which involves participation of the governments of Kenya, Uganda, South Sudan and Ethiopia, is considered one of the flagship projects under Kenya’s Vision 2030 development blue print.

‘We have already placed our bid for this massive project that will also involve construction of an oil refinery, power stations, jetties and other infrastructure facilities,” said Dennis Awori, Chairman-Toyota Kenya Ltd.

He was speaking during the signing of a memorandum of understanding (MoU) between Toyota Tsusho Corporation and the Kenya Vision 2030 delivery board.
Toyota Tsusho Corporation becomes the latest addition to a list of global multinationals that have already signed MoUs with the Vision 2030 secretariat, including US-based General Electric, which is to supply spare parts to manufacturing industries. IBM will also be setting up a tech laboratory in Kenya, to serve the East African region after it signed a memorandum of understanding with the country.

Tsusho Toyota and Vision 2030 teams will collaborate in the automobile, power and energy, petroleum, mineral resources, infrastructure and mechanized agricultural fields. Both units will form project teams within each of these business fields.

Toyota Tsusho Corporation, the investment arm of Toyota Motor Corporation, has over 65 per cent of its business in the automotive industry while the rest is in power and parts business. They also deal with export of food products, medical equipment and pharmaceuticals.

The firm has been working on major projects in the country and the building the pipeline will be an addition to their activity in the country .Among the works they have going on is the building of the Ol Karia I and IV geothermal power plants.
China was the biggest buyer of South Sudanese oil before the shutdown, and Chinese state firms are the biggest oil operators in the world’s youngest country.