The Kenya Ferry Service (KFS) and Trapos Limited have signed a project agreement for the implementation of the Likoni Cable Car Project.
This follows conclusion of negotiations between KFS as the contracting authority and Trapos Ltd, a consortium incorporating Kenya’s Trapos and Doppelmayr Garaventa Group, an Australian Company as the cable car technology provider.
Works on the Sh5.8 billion cable car venture at the Likoni crossing is set to start in the next two months, easing movement of passengers between North Coast and South Coast.
The Kenya Ferry Service (KFS) and Trapos Limited on Tuesday signed an agreement for the implementation of the project.
The signing of the project agreement, otherwise referred to as the Commercial Close, will usher the way for the Private Partner to conclude financing arrangements (Financial Close) to enable implementation of the project
Likoni cable express chairman Gerald Muigai said works on the project will start in the next 60 days, as pre-engineering works which started in June is nearing completion.
“We expect to start actual works on this project in the next 60 to 90 days. In the meantime, we will be processing statutory construction permits,” said Mr Muigai.
At the moment, the Likoni channel is served by four ferries — MV Likoni, MV Jambo, MV Nyayo and MV Jambo.
Mr Muigai said the project will run for 25 years after construction, before the project and its assets including revenue are reverted to the Kenya Ferry Services.
“Among the expected benefits of the project is providing an efficient, reliable and safe alternative to the ferry crossing along the channel, improved security, increased tourism and improved business environment,’ he said.
Traffic woes rocked the Likoni Channel in Mombasa on Wednesday morning after Mv Jambo, Kenya’s biggest ferry, broke down.
Motorists and pedestrians seeking to cross the Indian Ocean to South Coast were forced to queue for long hours to get transport.The congestion affected commuters rushing to work, who forced their way into the three available ferries— Mv Nyayo, Mv Harambee and Mv Kwale.
The breakdown has resulted in traffic snarl-up on both sides of the channel as the management struggles to help pedestrians cross the ocean.
Mv Jambo is the biggest ferry in Kenyan and the Kenya Ferry Services relies on it to deal with congestion.
The Sh5.8 billion Likoni Cable Cars project, which has been approved, will take at least 18 months to complete and will be unveiled in June 2020.
According to the Project Development Sponsor, Trapos Limited, the Private-Public Partnership (PPP) initiative will be commissioned early next year.
The cable cars will be a huge relief for ferry users, who have often suffered delays at the Likoni crossing channel caused by stalling of ferries midstream.
The delays have been blamed for the huge traffic snarl-ups that have seen the South Coast being shunned by tourists, who sometimes miss their flights at Moi International Airport.
Trapos chairman Eustace Mwarania said an environmental assessment and sub-ground tests must be undertaken first before the project kicks off.
The cable cars will transport up to 5,500 passengers in one direction or double that number in both directions in one hour.
Kenya Ferry Services (KFS) has already signed a 25-year concession agreement for the project connecting Likoni mainland with the Island.
The project will grant exclusivity to a consortium, Likoni Cable Express Ltd, under the Build-Own-Operate-Transfer model.
The government will be the biggest beneficiary of the Sh4.1 billion Likoni Cable Cars project, Transport Cabinet Secretary James Macharia has said.
Although the project is being undertaken through the Public Private Partnership, Mr Macharia said its value will stand at Sh20 billion at the end of the concession period.
Last week, the Cabinet approved the construction of the cable cars at the Likoni channel.
“The project is done through the private sector. The government is not putting a single penny in it.
“It is being done through the Public Private Partnership, through a company called Trapos Limited. Upon completion, the cars will be carrying about 187,000 passengers every day, compared to the current ferry passenger capacity of 350,000,” he said.
The national government has approved plans to develop a cable car system to ease traffic congestion on the Likoni channel.
The project which is estimated to cost Sh4.1 billion will move up to 5,500 passengers in one direction or double that number in both directions in one hour.
The project was approved during on Tuesday’s Cabinet meeting chaired by President Uhuru Kenyatta at State House, Nairobi.
Cabinet approved a privately initiated investment proposal to develop a cable car system to address the human traffic challenges across the Likoni channel.
The project which will be sponsored by a Kenyan and Austrian company will be capable of moving 5,500 passengers per direction per hour (or 11,000 passengers per hour in both directions). It is estimated to cost Kshs.4.1 billion and will be implemented as a 25 year Build Own Operate Transfer (BOOT) PPP.
Movement in Mombasa and its surrounding areas will be eased following plans to extend the Likoni Cable cars project to Moi International Airport, Nyali and Malindi.
Construction of the Sh5.8 billion project moved closer to reality after pre-engineering works were completed last week.
Kenya Ferry Service managing director Bakari Gowa said after the Likoni project Trapos Group, which is handling the work, will look into expansion to other areas.
The areas include Moi International Airport and the Nyali suburb. The cable cars will also be extended to Malindi in Kilifi County, he said.
Pre- engineering work for the kshs 5.8 billion likoni cable cars express are complete, paving way for the construction. The construction of the multi-billion shilling cable car is set to begin before August according to Kenya Ferry Services MD Bakari Gowa.Mr. Gowa said engineers are awaiting a nod from the cabinet to begin work on the project.
“When we get the green light, the investor will sign a financial agreement with the project handlers” Mr.Gowa told the Nation yesterday.Trapos is the company sponsoring the project. It signed a concession agreement with Kenya Ferry Services in December 2017.According to the agreement, the project will be handled by the Likoni Cable Cars Express Ltd for 25 years.
Mr.Gowa said pre-engineering works involved the survey of the sites where the landing stations and masts would be built.The landing station will be built over the road. The KFS chief said the land dispute, which also contributed to the delay of the project, has been resolved.
“We are in the process of getting a title deed for the land where the two major masts will be built. The masts and the landing stations are the main installations in this project”, Mr. Gowa added. KFS and the Kenya National Highways Authority were involved in a dispute over land on the mainland side of the Likoni channel. The ministry of Transport and infrastructure intervened to end the row. The construction will be done by the C&C Company, he said.
The contractor will be in charge of the infrastructure, which includes two 90-metre masts and two landing stations.C&C will work with the Doppelmayr Group, which will be in charge of the technological part of the project. It is expected to transfer the technology and operate the system with Likoni Cable Express Ltd. The project is being undertaken under the 2012 Public-Private Partnership Act.
According to the government officials, its completion will take two years. It is expected to generate hundreds of jobs, during the construction period and after completion. The iconic project has been lauded by the stakeholders in the hospitality industry who say it will be the critical driver of tourism in the South Coast. The cable express car is expected to be a state-of-the-art gondola system connecting either side of the channel. The cars will work for seven days of the week, crossing the channel in less than three minutes.
The Kenyan government plans to set up a cable car transport system . This is according to Kenya’s leading ferry fisheries director – Bakari Gowa.
Gowa has said that the cars will be started being manufactured next month in Germany.
`It will take about a year for the vehicles to be manufactured and delivered to Kenya .They will be launched in the next year to begin the work of carrying people i across the Likoni ferry, ” says Gowa.