A Japanese firm, Toyota has made a proposal to build the oil pipeline under the Lamu Port-Southern Sudan and-Ethiopia Transport Corridor (LAPSSET) project. This comes weeks after the president urged interested investors to come in and help accelerate this and other projects under the vision 2030.
Toyota through its trade and investment arm,Toyota Tsusho Corporation (TTC) and the government of Kenya are set to sign a memorandum of understanding (MOU) to allow it intensify its investments in the different sector in the country.
The pipeline is one of the components under the mega LAPSSET Corridor which was launched last month. The project to be undertaken by Kenya, South Sudan and Ethiopia will also include the construction of a new port in Lamu, a railway line to South Sudan and Ethiopia refinery and resort cities in northern Kenya.
The company announced its interest to invest in the project in the year 2010 where it proposed to build the 1400 kilometer-long oil export pipeline stretching from Juba, Southern Sudan to the Coastal town of Lamu at an a cost of Sh114 billion. It would then run the pipeline for 20 years so as to recoup its investment and thereafter transfer its ownership to the two governments. According to the company, the project is billed as its biggest investment of the decade.
This will not be Toyota’s first investment in the country’s energy sector. In November last year, the Japanese trading firm and Hyundai Engineering Co of South Korea were awarded the biggest contract in the power project of building geothermal plants at a cost Sh40 billion.
Toyota is divided into six major business divisions that include metals, machinery and electronics, automotive, energy and chemicals. It also has divisions that deal with produce, foodstuff and other materials. Its huge catalogue of planned investments includes participation in geothermal power generation and field development.