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{
    "id": 659352,
    "url": "https://info.mzalendo.com/api/v0.1/hansard/entries/659352/?format=api",
    "text_counter": 264,
    "type": "speech",
    "speaker_name": "Hon. Langat",
    "speaker_title": "",
    "speaker": {
        "id": 384,
        "legal_name": "Benjamin Kipkirui Langat",
        "slug": "benjamin-langat"
    },
    "content": "In 2007, the Kenya Ports Authority (KPA) got into an agreement with the Japan International Corporation Agency for a loan Yen26.7 billion for development of phase one of the Second Container Terminal. Phase two was supposed to follow. The first phase took four years and was completed in 2016. My Committee Members visited Mombasa and we noted that virtually, it is completed. They are working on the machines so that the terminal can start operation. We are now talking about phase two because phase one has been completed. As I have said, the first phase was supposed to be operated by an independent operator on concessionaire but there were issues and the KPA decided to operate it on their own. They told us by mid next month, they will operate the port. The port has been trying to enhance its capacity so that they can handle the increased containers, both for the local imports and exports and for the transshipment containers destined to Uganda, Rwanda and other countries. This is meant to enhance our capacity. The second phase is important to make Mombasa Port competitive considering that we have competition from Tanzania and South Africa. Our ports should be enhanced so that we can move to compete. This loan which is equivalent to Kshs27.3 billion is expected to be used to construct the phase two terminal. The total cost of the second terminal is expected to be about Kshs35 billion. The other amount is expected to be raised by the KPA so that the counterpart bit should be at least above 15 per cent, as per the Public Finance Management (PFM) Act which requires that for any loan guarantee, the borrowing entity must raise a minimum of 15 per cent. We worked it out and it came to around a figure of 22 per cent which the KPA is supposed to contribute as counterpart contribution to this project. The interest rate and repayment period of the loan is unparalleled. I have never seen a loan that we repay at 0.11 per cent annually, a moratorium of six years and a repayment period of 34 years. Compared to what we have been seeing locally, I would say this is the best. Looking at the capacity, we have to consider that this is a guarantee and it does not mean that the Government of Kenya is borrowing directly. It is guaranteeing the---"
}