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Dock workers demand probe on Kenya–UAE port deal

National Treasury is in talks with DP World on key harbor, rail projects.

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by The Star

Big-read06 July 2022 - 12:50
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In Summary


•The Kenyan government has invited the Dubai-based firm to tender in a proposal that will include an implementation plan for six projects.

•This includes operating the first three berths at the new Lamu Port, constructed at a cost of about Sh40 billion, and any other subsequent expansion.

Dock Workers Union general secretary Simon Sang addressing journalists outside the Port of Mombasa/

Dock Workers are demanding transparency in the planned transfer of the Kenya's port operation and development to United Arab Emirates firm DP World.

Kenya has invited the Dubai-based firm to tender a proposal that will include an implementation plan for six projects.

This includes operating the first three berths at the new Lamu Port, constructed at a cost of about Sh40 billion, and any other subsequent expansion.

The UAE firm is also expected to develop a 500-hectare Special Economic Zone (SEZ) next to the port, focused on agriculture value addition and servicing the Lamu corridor into Ethiopia and South Sudan.

At the Mombasa port, the firm is expected to re-develop four berths that will see the conversion of berths 11-14, that are currently unable to handle container operations, into a modern multi-purpose container terminal with a capacity of one million containers.

Also on offer are the cold chain logistics operations in Naivasha.

The rail linked cold chain will be connected to the Inland Container Depot, and will serve Central Kenya, National Treasury notes.

The projects are under an “Economic and Technical Cooperation Agreement” signed between the Kenyan government and the UAE, on March 1 this year, with a “non-disclosure agreement”, which means it is not open for public scrutiny.

In a letter by the National Treasury Cabinet Secretary Ukur Yatani, to Sultan Ahmed Bin Sulayem, chairman DP World, Kenya is awaiting a proposal from UAE that will include an implementation plan.

“DP World is expected to sign a non-disclosure agreement with the government of Kenya to enable access to information and documents to facilitate preparation of the detailed commercial proposal,” Yatani says in the letter.

The Attorney General, who is the legal advisor of the government, has already cleared this, according to Treasury.

The Dock Workers Union says it is not opposed to any proposed development but such contracts need to be made public.

It raises concern that DP World is not known for being a good employer in terms of working conditions of services.

“If the government or those parties who have engaged DP World feel that DP World will be useful in developing Special Economic zones, they should subject it to public participation and a task force made up of Kenyans who have the expertise of such investments put in place to look into it,” the union's general secretary Simon Sang said in a statement.

He said politicians should not use the matter as a campaign tool.

The union called for the prioritisation of Dongo Kundu as a Special Economic Zone saying it is a critical economic facility that can create more than 100,000 direct jobs.

“This is the facility which will be supported by the seamless SGR operations, free port facilities and efficient port,” Sang said.

Meanwhile, the union has supported the revival of the Kenya National Shipping Line (KNSL) which it terms a “golden opportunity” for Kenya to share freight business with major shipping lines.

Mediterranean Shipping Company is keen to operate the Second Container Terminal AT Mombasa port, which could however give it an edge over competitors such as Maersk, French container transportation and shipping company-CMA CGM and Evergreen Line, key users of the facility.

The union also called for the passing of the Government Owned Entities Bill of 2014 (GOE), which it says, will protect government entities.

There are concerns the non-disclosure clause in the ports deal will leave Kenya in the dark similar to the Sh450 billion SGR contract with the Chinese, that the government has refused to make public amid questionable terms and beneficiaries.

In January this year, Transport Principal Secretary Joseph Njoroge said making the deal public would be in breach of contractual terms of the agreements.

 

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