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"id": 659348,
"url": "https://info.mzalendo.com/api/v0.1/hansard/entries/659348/?format=api",
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"type": "speech",
"speaker_name": "Hon. A.B. Duale",
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"legal_name": "Aden Bare Duale",
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"content": "Hon. Temporary Deputy Speaker, I beg to move the following Special Motion:- THAT, this House notes the Sessional Paper No.1 of 2016 on Government Guarantee on Borrowing for the Construction of the Second Container Terminal Phase II, laid on the Table of the House on Thursday, March 10, 2016 and pursuant to the provisions of Article 213 of the Constitution, and sections 50 and 58 of the Public Finance Management Act (CAP 412C) approves the Government of Kenya Guarantee against a loan of Japanese Yen (Y) 32.116 billion, equivalent to Kshs27.30 billion at the current exchange rate, to be borrowed by the Kenya Ports Authority (KPA) from the Japan International Cooperation Agency (JICA) negotiated at the rate of 0.11per cent per annum and repayable in thirty four (34) years, with a six-year (6) moratorium, to finance Phase II of the development of the Second Container Terminal at the port of Mombasa as part of the Mombasa Port Development. Hon. Temporary Deputy Speaker, after consulting with the Chair of the Departmental Committee on Finance, we agreed that I move debate on this Motion and have it seconded, so that when we come back from recess in June the House can debate it to conclusion. In accordance with the provisions of Section 5(1) of the Guarantee Loans Act, Cap. 461 Laws of Kenya, which has since been repealed, the House, on 24th July, 2008 approved Sessional Paper No.1 of 2008 on the Kenya Government Guarantee of Japanese Yen (Y)26.7, equivalent to Kshs.16.18 billion for Kenya Ports Authority (KPA) for the development of Phase I of the Second Container Terminal. With the full support and indulgence of the Government of Kenya, KPA has successfully negotiated for a loan of Kshs27.3 billion from the Japanese International Cooperation Agency (JICA) for Phase II of the development of Second Container Terminal. The Port of Mombasa is the gateway to East and Central Africa. It is also the central seaport of the region. As gazetted under Schedule Two of the KPA Act, Cap. 391 of 1979, the primary function of KPA is the management of the seaports in Kenya. These include the ports of Mombasa, Vanga, Shimoni, Mtwapa, Kilifi, Funzi, Malindi, Kiunga and Lamu. Cargo handling, as specified in the KPA tariff, constitutes its core activity. What this approval is doing is that KPA, as an institution, has the capacity to pay its loan. The National Treasury is only giving the guarantee. This is a deal between KPA and JICA. The main objective of this project is to expand the container handling capacity to match the current and expected growth of container tariff throughout the Port of Mombasa. We are very happy to report that the Port of Mombasa has handled the highest number of container traffic in 2015, when they reached the mark of a million containers. Container traffic is expected to grow from the current 1 million for the 20-feet equivalent units per year to 1.5 million by 2017.This is a projection. They are now handling a million containers annually. For them to handle 1.5 The electronic version of the Official Hansard Report is for information purposesonly. A certified version of this Report can be obtained from the Hansard Editor."
}