Kenya Ferry Services on Wednesday signed the initial Sh5.8 billion concession agreement with Trapos Limited for a cable car project.
The agreement signed by Trapos’ representative Eustace Mwarania and KFS managing director Bakari Gowa will be taken to the Cabinet for review before it is approved.
Gowa said they expect the Cabinet to approve the initial agreement before the end of January 2018 before official commissioning in 2020.
“After the approval, we will then come and sign the actual agreement for this world-class project,” the KFS boss said.
Speaking at KFS headquarters during the signing, Gowa said they expect the project to take two years after ground-breaking.
The cable cars have a capacity to transport 5,500 people per hour, according to KFS management.
KFS said a company, trading by the name Likoni Cable Express Limited, will manage the project after completion.
“The project will include 22 cabins that can carry 38 people. The main station, which will be on the Island side of the ferry, will have a hotel facility and administration office,” Gowa said.
“The sub-station will be located on the mainland side and will only have a dropping and collection centre.”
Passengers using the cable cars will have to pay between Sh20 and Sh100, the KFS boss added.
He added that the cable cars will act as a tourist attraction and further ease congestion at the Likoni channel where over 300,000 commuters cross daily.
Mwarania said they will partner with Doppelmayr, an Australian-Swiss company that manufacturers cables, to put up the project after cabinet approval.
The project financing will be 40 per cent equity (shareholding) and 60 per cent debt.
“We shall unveil the financiers of that project during the groundbreaking,” Mwarania said.
According to KFS and Trapos, Dopplemayr will run the project for a 25-year concession period.
“The company will construct, maintain and run the project for 25 years before officially handing over to the government,” Gowa said.