Kenya - Invites bids for new port construction

13 September 2010 | By Thomson Reuters

Kenya on Monday invited bids for the first phase of construction of a new port along its coast in Lamu, involving the building of three berths.

 

The port is part of a proposed $22 billion development plan meant to connect Kenya to Southern Sudan and Ethiopia. The project will also include a pipeline, roads, a railway, and airports in major towns along the way.

 

"As first phase of this project, the Government plans to construct the first three berths with associated infrastructure at Manda Bay, Lamu," the Ministry of Transport said in a newspaper advertisement.

 

The ministry said the berths would be expected to handle container ships with capacities of 100,000 deadweight tonnes (dwt), general cargo ships with 30,000 dwt and bulk cargo ships of 100,000 dwt.

 

The other amenities to be built along with the berths include access roads, railway sidings, warehouses and buildings, the ministry said.

 

Kenya has been improving and expanding its infrastructure with the aim of attracting and retaining investors who often complain its dilapidated facilities increase the cost of doing business.

 

Southern Sudan, which is due to hold a referendum in 2011 on whether it wants to separate from the north, hopes to export some of its oil.

 

Kenya hopes its neighbour will use its facilities for the exports.

 

 

Rwanda - Railway Line to Cost Over U.S. $3 Billion

10 September 2010 | By Stevenson Mugisha

Rwanda - Works on the anticipated Isaka Kigali railway line will cost between $3 and 4 billion , the Minister of Infrastructure has said.

The minister explained that the existing railway line in Tanzania will first be upgraded before being extended to Mosonga region in Burundi, and later to Kigali. Karega said that appropriate types of trains to be used on the planned railway line have already been identified, adding that efforts are underway to attract more funding from several other multinational banks, such as OPEC Bank.   A final resource mobilization roundtable is scheduled next month in Dar-es-salaam, Tanzania, he added. "In order to facilitate the process, we are recruiting some transaction and auditing companies of international calibre that will be transacting and engaging with all the stakeholders," Karega added.   The minister also noted that China has shown interest in financing the project, and that the US government, through USAID, also supported one of the preparatory activities.

 

 

Nigeria - Federal Government Constructs New Terminal Buildings at Five Airports

17 September 2010 | By Sunday Williams & Nahimah Ajikanle Nurudeen

Lagos — The Federal Government said yesterday that Nigerian airports will start wearing a new look with the plans to construct five new terminal buildings across the nation's airports to make them align with international standards.

 

Minister of Aviation Mrs. Fidelia Njeze said this while declaring open the 19th edition of the Airport Council International (ACI) Conference and Exhibition, Africa Regional in Abuja. She said Federal Government was determined to develop new terminal buildings at the major airports, including Lagos, Abuja, Port Harcourt, Kano and Enugu.

 

She said: "The Federal Government is in the process of upgrading and remodelling her airports with five key airports in the first phase. These include the construction of four new terminals at Abuja, Kano, Port Harcourt and Enugu, as well as the expansion and massive upgrade and remodelling of the Murtala Muhammed Terminal in Lagos.

 

This she said will help in the deployment of the required technology that will help in enhancing security, safety and passenger comforts at the airports.   Meanwhile, the managing director of Federal Airports Authority of Nigeria (FAAN) Mr. Richard Aisuebeogun, has said that the Federal Government has given the authority approval to adopt the same "pay-as-you-go" introduced by the Nigerian Airspace Management Agency (NAMA) to avert being owed by airlines and other airport users.   According to him, government's approval of the new payment mode came against the backdrop of the over N16 billion owed FAAN by airlines and for which it had given the airlines three years within which to defray.   He explained that the new payment mode would commence on October 1, 2010.

Aisuebeogun noted that airlines who fail to adhere to the new mode will have themselves to blame as FAAN will not hesitate to shut down their operations.

 

"We have government's approval to begin the pay-as-you-go mode of payment by airlines on October 1, 2010. The essence of the new system is to ensure that airlines don't continue to owe us. We will not hesitate to apply sanctions on airlines who fail to comply. We hope airlines will take advantage of this new system to avoid holding on to our money," Aisuebeogun emphasised.

 

 

Ethiopia - Chinese company starts clinker, cement production

09 August 2010 | By ethiopian-news

A Chinese Company, Huang Shan Cement plc of the Guangdong Chuanhui Technology Development Group Co. Ltd. on Sunday officially commenced production of clinker and cement in Mojo town of the Oromia Regional State about 75 km south of Addis Ababa, the capital of Ethiopia. The Group invested in the cement manufacturing company in 2009.

 

Speaking at the official launching ceremony of the production, Gu Xiaojie, Chinese Ambassador to Ethiopia, said the operation of Huang Shan Cement Clinker Production line is an excellent showcase for the successful cooperation in the field of investment between China and Ethiopia.

 

Gu has expressed delight that the project by the Group helps boost the economic development of Ethiopia by utilizing its natural resources and local labor force.

 

The ambassador said the Chinese government had always been supportive to and encouraging the Chinese companies to invest in Ethiopia that they play constructive role in Ethiopia’s industrialization endeavors.

“I am very glad to see that, according to the Ethiopian Investment Agency, there were more than 700 Chinese investment projects with a volume at 1.2 billion U.S. dollars by November 2008,” said Ambassador Gu.   “There are great potentials in the cooperation between China and Ethiopia as the economies of the two countries are highly complementary. I am looking forward to more Chinese companies to invest in Ethiopia, which will bring more tangible benefits for the well-being of both peoples of the two countries,” he said.   “The Chinese embassy will do its best to continue to support and provide necessary service to the Chinese companies,” he added.   It has been almost two years since Guangdong Chuanhui Group invested industry in Ethiopia.

Yanlin Liu, president of the group, said on the occasion that the group would do all its possible to contribute to Ethiopia’ s economic promotion and improve the livelihoods of the local people by providing more job opportunities.

 

Speaking on his part, Abdulaziz Mohammed, Vice-President of the Oromia Regional State, said the construction of the cement plant helps to narrow the gap between demand and supply of the products while it creates significant number of jobs for the local people.

 

“Having more cement plants like this one, however, if the amount of production of cement exceeds the amount needed locally, export the rest to foreign market, while creating jobs for our graduates and people; aside from the jobs created for those who will have to perform duties inside the factory, it also provides sideline jobs for people in the localities,” said Abdulaziz.

 

 

Kenya - Construction boom as resurging economy creates new opportunities

14 September 2010 | By Morris Aron

Construction in the real estate sector surged in the first six months of the year, driven by a growing number of developers investing in middle-income residential estates, Kenya National Bureau of Statistics figures have shown.   Leading economic indicators for the month of July show City Council of Nairobi approved development plans worth Sh11.6 billion, with the residential property segment accounting for Sh7.3 billion of the planned developments for the month of June alone. The latest KNBS figures confirm a trend that many property analysts have in the recent past projected.   Real estate experts say there is a renewed interest among developers who are moving to cash in on the opportunities created by the ongoing infrastructure developments, particularly roads in and around the city, which are promising to open up land prime for residential estates on the outskirts of the city to meet demand for housing.

"Demand for housing is most acute at the middle and low end of the market," said Frank Ireri, the managing director of Housing Finance, a mortgage financing company at a recent function.

 

"More developers are increasingly looking for opportunities in the low and middle income housing projects, especially along the corridors of major road developments, and in the old dilapidated housing units built in the colonial era," said Wilberforce Oundo of Regent Group, a property company.

 

 

Tanzania - Power contract with US firms signed in Dar es Salaam

13 September 2010 | By Masembe Tambwe

POWER transmission and distribution to rural areas of the country is expected to increase in the next three years after the government signed a contract worth 97bn/- with two USA companies.  ''We hope that the signing of these two contracts that were won by American companies will help Tanzanians leap frog into the 21st Century as well as help chip away the barriers that limit greater distribution of power,'' the US Ambassador to Tanzania, Mr Alfonso Lenhardt said. 

 

Speaking at the signing ceremony in Dar es Salaam on Monday, Mr Lenhardt who witnessed the event said that the contracts would help in increasing the number of people getting power to at least 18 per cent from the current 15 per cent.  Mr Lenhardt said that the US firms would ensure that from the power transmission and distribution projects under the Millennium Challenge Compact, Tanzanians get better health, education and better lives.  ''This is indeed a thrill to see two US companies coming up on top after fierce competition for the contracts. I would like to urge Pike Electric and Symbion Power to get the work done on time and it should be done professionally though I have no doubt it shall be,'' he said. 

 

The Tanzania Millennium Challenge Account Chief Executive Officer, Mr Bernard Mchomvu explained that the contract awards represent the achievement of yet another important milestone in the ongoing implementation of the 206m US dollars MCC Energy Project.   Mr Mchomvu pointed out that Symbion Power had been given two lots worth 47.7m US dollars covering Mwanza, Morogoro, and Iringa and Mbeya regions while Pike Electric will execute a package covering the regions of Dodoma and Tanga amounting to 17.9m US dollars.  ''We are very confident that the great historical performance record you are carrying will be positively demonstrated at the delivery end and we hate to see anything otherwise,'' he cautioned.   The Symbion Power Chief Executive Officer, Mr Paul Hicks said after the signing that over 2000 jobs would be established from the distribution and transmission of power to the regions and that a lot more would be trained along the way. ''We are setting up a training centre in Morogoro and hope that once our three years are up, we will leave numerous Tanzanians with the skills as well as companies that will not necessitate foreign assistance,'' Mr Hicks said.   The Pike Electric Chief Executive Officer, Mr Eric Pike explained that his company had been in the power distribution industry since 1945 but it had never worked outside the US and that this was a challenge they were looking forward to especially since the country was on its way towards achieving its goals.

 

 

Tanzania - Chinese firm to build $12.5m cement factory

21 September 2010 | By TradeInvestAfrica

Chinese firm Lee Building Materials plans to construct a $12.5 million cement factory in Lindi, South of Dar es Salaam. Construction of the plant, with a capacity of 300,000 metric tonnes per annum, will commence this September and is expected to strengthen Tanzania’s position as a cement supplier in East Africa.  Lee will specialise in white cement, which is not produced in abundance locally. The project is also expected to rejuvenate the dormant Kilwa port in Lindi district.

 

Tanzania’s cement production stands at three million metric tonnes per annum against a local demand of over 2.1 million tonnes.  Current cement producers include Heidelberg’s subsidiary Tanzania Portland Cement Company, French Lafarge’s subsidiary Mbeya Cement Company Ltd and Holcim Mauritius subsidiary Tanga Cement Company Ltd.  Local manufacturers complain that cheap imported cement is hurting their industries, and want the East African Community governments to support them so that the industry can compete with the imported cement.

 

 

East Africa - Wind power sector attracts big companies

15 July 2010 | By TradeInvestAfrica

Kenya’s promising wind power sector is attracting big firms set on exploiting the country’s huge potential.  The result of ongoing feasibility studies could pave way for multimillion dollar infrastructure spending in wind energy in the East African region. Among the firms involved in the studies is General Electric, a leading global player in the energy infrastructure sector. The firm is evaluating proposals from developers, collecting data and formulating projects.   Wind energy constitutes about 20% of the 1699 Megawatts additional power that Kenya is working towards injecting into the national grid over the next five years. The Lake Turkana Wind Power Project is the largest of the three wind power plants that are expected to come online in the next two years, to produce 365 Megawatts of electricity. The other projects are a 15-megawatt plant by the Kenya Electricity Generating Company and a 50-megawatt plant by Aeolus.   According to the Lake Turkana Wind Power Project officials, the amount of energy that can be generated from one turbine is double what can be produced from a similar turbine in Europe.

 

 

World steel demand growth seen slowing in 2011

04 October 2010 | By Reuters

Growth in global steel demand is expected to slow to 5,3% in 2011 but to still hit a record 1,34-billion tons after jumping more than expected this year to above levels seen before the global economic crisis, the World Steel Association said. China will make up 45% of global demand in 2011, while India will emerge as the world's third-biggest steel consumer after China and the United States, the steel body predicted on Monday in a report issued at its annual conference in Tokyo. "The industry landscape has been changing rapidly, particularly after the global financial crisis," said Hajime Bada, president of the world's No.5 steelmaker, JFE Holdings Inc, who will chair the global body for the year starting after the conference ends.

 

"We are in a transitional period: emerging economies like China, India, Latin American countries and Russia are bolstering their shares in steel output and consumption while demand in developed economies remains in the doldrums," he said. The steel group is expected to pick Xiangang Zhang, president of Anshan Iron & Steel Corp, as its chairman for the following year, which will be the first time its head has come from China. China's demand in 2011 will be 42% above the level in 2007, but demand in the developed world in 2011 is expected to be 25% below the 2007 level, Paolo Rocca, the body's current chairman and also CEO of Techint Group, told a news conference.

 

Demand for steel is set to rise 13,1% to 1,27-billion tons this year, higher than an earlier forecast of 8,4% growth. Growth in China's steel demand in 2011 is expected to slow to 3,5% from an estimated 6,7% in 2010 due to government efforts to cool the real estate sector and ongoing steel production control, the steel body said. Demand in India will rise 13,6% in 2011 to 68-million tons, about one-tenth of China's estimated 599-million tons.

 

 

Firm to Use Sh12 Billion to Make Wind Power

09 October 2010 | By Kennedy

Bluesea Energy Ltd is investing Sh12 billion ($149.88 million) in various projects to generate 117 megawatts (MW) of electricity from wind as a renewable source of energy. Projects in Lambwe Valley, Kericho, Eldoret and Isiolo in various phases of implementation are being undertaken using offshore financing to reduce over reliance on power generated from hydro and fossil fuel sources.

 

Lambwe project site in western Kenya was selected because it has enough wind to support power generation. Wind from Lake Victoria and the one from Transmara District converge on the hill in the valley. The firm's chief executive officer John Majiwa, said the company's $95 million (Sh7.6 billion) wind farm at Lambwe will inject 60 MW of electricity to the national grid as the site has adequate resources. "The target is to step up output from wind as a clean green renewable source as hydro power is prone to drought and fossil fuel generation becomes more expensive when cost of crude oil escalates," he said.   Kenyans have in the past paid high power bills after thermal generation went up as diesel and fuel oil prices escalated due to global market volatility. Output from water had declined as a result of prolonged drought. Costs of

thermal generation (fuel cost and forex adjustments) are borne by clients as pass through items for Kenya Power and Lighting Company (KPLC) that is mandated to transit, distribute and supply electricity. Bluesea's chairman David Ikiara said the company is investing to make use of feed in tariffs developed by the government to contribute to harnessing resources to satisfy energy needs at competitive prices.

 

The 2 MW wind farm being undertaken for Kapchet Tea Factory in Kericho at a cost of Sh230.4 million is expected to be operational upon installing of requisite equipment within three months. Bluesea's is spending Sh3.2 billion on 40 MW wind plant in Eldoret and Sh960 million on 15 MW facility at Nthumburi in Isiolo. The firm will build transmission and interconnection facilities to the generation sites to transfer power to the national grid. It is working with internationally recognised suppliers like Atelc Global and Hyunda Heavy Machinery from Korea, Viability from United States of America and Tempro of Netherlands for quick equipment delivery. Mr Majiwa said the company is also in process of engaging the Energy Regulatory Commission to seek a licence for electricity production and KPLC to negotiate for power purchase agreement.