A high level delegation from South Sudan has been in Kenya through the week to initiate negotiations with over rights of passage for the 2,000 kilometre crude oil pipeline the country has decided to build to connect its oil fields to the Kenyan coastal town of Lamu.
Initially, Juba said it would be building the pipeline on its own at an estimated cost of $3 billion, with Kenyas role limited to granting right of passage. But it appears that as the negotiations progressed last week, Juba realised that the scope of co-operation with Kenya on the project will have to be much broader to leverage the latters experience in executing large pipeline projects.
The climax of these preparations will be a groundbreaking ceremony to be conducted by President Mwai Kibaki on March 2 that will mark the start of the construction of the Lamu port. Ethiopian head of state Meles Zenawi and President of South Sudan Salva Kiir are among the dignitaries expected to attend the ceremony.
Last week, the joint implementation committee leading the negotiations expanded the terms of engagement. The parties will be negotiating terms and the role that Kenya can play in project execution support and management of the pipeline when it is fully operational. The joint committee is also negotiating issues such as immigration, transit fees, and provision of security for the pipeline
Last week, the negotiating party agreed to appoint a transaction adviser to advise on what are turning out to be complex negotiations.
Source
Initially, Juba said it would be building the pipeline on its own at an estimated cost of $3 billion, with Kenyas role limited to granting right of passage. But it appears that as the negotiations progressed last week, Juba realised that the scope of co-operation with Kenya on the project will have to be much broader to leverage the latters experience in executing large pipeline projects.
The climax of these preparations will be a groundbreaking ceremony to be conducted by President Mwai Kibaki on March 2 that will mark the start of the construction of the Lamu port. Ethiopian head of state Meles Zenawi and President of South Sudan Salva Kiir are among the dignitaries expected to attend the ceremony.
Last week, the joint implementation committee leading the negotiations expanded the terms of engagement. The parties will be negotiating terms and the role that Kenya can play in project execution support and management of the pipeline when it is fully operational. The joint committee is also negotiating issues such as immigration, transit fees, and provision of security for the pipeline
Last week, the negotiating party agreed to appoint a transaction adviser to advise on what are turning out to be complex negotiations.
Source
