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of petroleum have taken on heightened next five years. In part, this is due to lack of
significance, making regional co-operation investment in the oilfields, which is a result
over the pipeline all the more important but of both continuing uncertainty over possible
increasingly difficult to achieve. conflicts with Sudan and internal political
Both Uganda and South Sudan remain wary instability and conflict in South Sudan.
about running their pipeline through the
LAPSSET corridor to Lamu. Tullow remains Sudan
conspicuously reticent about its option and, While the government in Khartoum is
more recently, going by media reports, the characterized by high levels of factionalism
company seems to working on an exit plan. and closely involved with private business
Kenya interests, its position on LAPSSET is clear.
LAPSSET generally has strong political Khartoum stands to lose lucrative transit fees
and thus has every reason to be opposed to Walking alone, but
support in Kenya in almost any of its possible
versions. Much of the case for developing the project. Some members of the Sudanese forging ahead anyway
LAPSSET rests on an argument about government view it as in their interests to
Kenya’s national political and economic keep South Sudan weak and vulnerable, if
interests, in particular confirming Kenya as only to discourage Juba supporting rebels in In its singular effort to deliver LAPSSET, the
the regional transport and trade hub. The the north. government of Kenya undertook ground
personal political and economic interests Sudan’s perspective on oil from new fields in breaking for the LAPSSET Corridor Program
of government officials are also a part of South Sudan might be somewhat different. at Lamu Port site on 2 March 2012, after which
this equation. Financial gains through With oil from existing fields still flowing it commenced construction activities of
land speculation, contract awards, and north, this would not pose an immediate various infrastructural facilities and services
involvement in companies with government threat to Khartoum’s revenue. Although it aimed at progressing implementation of
contracts are familiar devices for turning is highly unlikely that Sudan would actively LAPSSET Corridor Project, staring with the
public wealth into private gain in Kenya. support a southern pipeline linked to construction of port buildings.
A difficulty facing Kenyatta’s government is LAPSSET in South Sudan-even from new Later, with an allocation of KES 4.2billion, the
that LAPSSET is not the only megaproject oilfields-it might be tolerated. construction works for the first three berths,
that needs funding, and, as a consequence, began in 2013, by China Communications
Kenya is already facing rapid debt escalation. Uganda Construction Company at a cost of nearly
Most prominent among non-LAPSSET $480 million. Although initially planned for
initiatives-in terms of both scale and the Uganda has a relatively effective civil service, opening by later this year2020, latest reports
attention it has garnered-is the construction a coherent political class, and a strong indicate the works are behind schedule,
of a USD 5 billion standard - gauge railway president with close control of decisions attracting President Uhuru Kenyatta’s
from Mombasa to Malaba on the Kenyan- and processes, features some have seen attention when he visited to inspect progress
Ugandan border, which is funded by a loan as providing a basis to manage oil ‘in the in October 2019.
from China and a 1.5 per cent levy on all national interest’. This has been much to
imports. the frustration of the international oil Meanwhile, significant progress has been
In part, current enthusiasm for regional companies operating in Uganda. While made particularly with the Highway
component of LAPSSET, starting with the
integration schemes stems from political President Yoweri Museveni is remarkably
circumstance. It also reflects government bellicose in his language toward ‘the West’, construction of 505 km Isiolo-Moyale A2
reaction against what it sees as the neo- his government has been heavily dependent Road costing approximately KES 46 billion
colonial pretensions of western powers and its on multiple forms of financial support from funded jointly by the African Development
preference for African-and Asian and Arab- the United States, the UK, and other western Bank, European Union and the Government
partners. For want of alternatives, however, governments. of Kenya, completed in 2017. The Project
the Kenyan government now appears to be links Kenya and Ethiopia having improved
far from averse to investment by western Ethiopia transport and logistics services between
companies in LAPSSET’s infrastructural Ethiopia publicly expresses support for Addis Ababa, Lamu and Nairobi.
components. LAPSSET. At the same time, the country he Isiolo – Merille River Road, constitutes the
has been forging ahead with its own first section of the 505 km road from Isiolo
South Sudan infrastructure initiatives, which are largely to Moyale which is part of the road linking
South Sudan’s position on the pipeline funded and built by China. The late Prime Tunduma in Southern Tanzania with Addis
Minister, Meles Zenawi, demonstrated
Ababa in Ethiopia. The project construction
was uncertain even before the outbreak of solidarity with LAPSSET by attending the
conflict in December 2013. State interests are March 2012 launch. During that same visit, works are complete. This project was funded
particularly difficult to separate from internal he also signed bilateral agreements on the by the African Development Bank at a cost of
political and economic rivalries. Internal development and management of the Lamu- KES 6.3billion.
government disputes have now left power Addis Ababa railway. The Marsabit – Turbi (123 km) road, begins
in the hands of a small group surrounding in Marsabit at the junction with the road
President Salva Kiir and they appear to have However, Ethiopian government C82 and runs in a northerly direction and
decided not to push for further confrontation commitment to Kenya’s grand vision was terminates in Turbi constituting the third
with Khartoum at present. questioned later that year when Ethiopia section of the 505 km road from Isiolo to
To a large extent, the Kenyan government signed an MoU with Djibouti and South Sudan Moyale and Addis Ababa in Ethiopia.
for a crude oil export pipeline from the latter
had envisaged the burden of sourcing to the former, via Ethiopia, cutting Kenya The construction works for this section
LAPSSET finance falling on South Sudan. and therefore the LAPSSET pipeline out of funded by the African Development Bank
But, even in the more peaceful period of the equation. South Sudan’s involvement in is complete. The project cost a total sum of
2011–2012, for South Sudan to have made this project is probably even less likely to KES 13 billion. Construction works on the
such a gigantic investment would have been materialize than its role in LAPSSET pipeline. Turbi – Moyale (125 km) which commenced
‘financial insanity’. Nonetheless, the Ethiopian government in October 2012 was completed in 2017.
Based on known reserves and existing would presumably welcome construction of This section was funded by the African
technology, South Sudanese oil production such a pipeline and any associated roads - Development boasting connectivity with
is projected to decline substantially over the provided it did not have to pay for it. Ethiopia.

36 | The Nile Explorer 008