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{
    "id": 661452,
    "url": "https://info.mzalendo.com/api/v0.1/hansard/entries/661452/?format=api",
    "text_counter": 341,
    "type": "speech",
    "speaker_name": "Hon. (Ms.) Otucho",
    "speaker_title": "",
    "speaker": {
        "id": 12837,
        "legal_name": "Mary Emaase Otuch",
        "slug": "mary-emaase-otuch"
    },
    "content": "However, we asked questions with respect to the financing. Our Committee referred this Motion to the House so that the representatives of the people can give it an approval. What this Motion is asking is for the Government to approve that borrowing because when the Government approves the borrowing then it is going to be a guarantor for the borrowing. So, our concern as a Committee given our debt levels was: Is KPA as an organisation financially stable? How sound are their financial statements? Are they able to repay the loan? Have they gone through due diligence to make sure that, that has been analysed and evaluated? There was a representative from the National Treasury and we were told that that has been done and that KPA is sound and able to repay the loan. So, what the Government would do here is just to guarantee the borrowing, but the repayment is not coming from the taxpayer but KPA. But our concern was: In an unfortunate event that KPA is unable to repay this loan, then it would become a liability to the Government and it is only at that point that the Government would have to repay this loan. However, we also raised other concerns. We also have plans to build Lamu Port. With the construction of the Lamu Port and we already have another berth that was just completed which has not been operationalised and when we were at the port we also did not notice any congestion at the port, we were wondering whether we really need this second terminal at this point in time. Those were questions we raised, but we were told that we need to expand. This is a long-term development that will take some time. We do not need to wait as a country until when demand arises and then we begin to look for money to build another berth. We need to do it early so that we increase capacity to allow more vessels to dock at the same time. If you have a port where vessels have to queue before they can berth and offload, then investors would prefer another port where they are able to berth immediately and offload. I think the idea is good and we should support it as long as KPA is able to pay. Government is just giving a guarantee. Considering the benefits of more vessels berthing, the income that will be generated and with the SGR, it would require that the vessels are able to berth in time. That will enhance efficiency in terms of operations at the KPA. Thank you, Hon. Temporary Deputy Speaker."
}