Kenya budget larger than rest of EAC combined

[Geza Ulole]

I have a problem with this growth rate percentage. Always stagnant never rising or going below. Always stuck at 6.5% for a decade now. I would have put a question. This stunted growth rate, how do you expect to cater for your energy needs? And if you keep sustaining expensive modes of energy production, what goes into the national reserve. And for now agro-based economic trading is simply coming to a close, due to expanded GMO technologies that is taking root in SA and other west african nations.

I did not follow proceedings because I was busy but give me the percentage allocation for energy and we calculate now that we know that only a paltry 30% will go to developments like infrustructure and others.

actually it was around 8% before globally recession and this year will grow at 6.8! BTW ur budget allocation for development expenditure (energy, ICT and roads) is at 24%!

Tanzania: Emphasis On Energy

By Leonard Mwanga, 19 June 2012

• Comment

Dodoma — Finance and Economic Affairs Minister Dr William Mgimwa has unveiled the 2012/2013 national budget estimates that targets an economic growth of 6.8%, detailing swift measures to ease the economic hardships that afflict the people.
Mgimwa said the Tsh 15 trillion ($9.48 billion) budget seeks to tame rising inflation, food insecurity and unemployment, with specific emphasis on power generation, infrastructure development, strengthened revenue collections and tight control on public expenditure.
In order to develop the agriculture sector the government plans to partner with the private sector to invest heavily in rice and sugarcane farming in the country's major valleys include Wami, Ruvu, Kilombero and Malagarasi, as strategic measures to curb food shortages.
"The government plans to guarantee food security through increased production of food crops," Dr Mgimwa said of the single digit inflation targeting budget, hinting that the government will adhere to the pillars of multib Kilimo Kwanza initiative.
The agriculture, fisheries and livestock sector has been allocated Tsh262 b ($166 m) in the budget. Mgimwa said that reliable availability of electricity was among the top priorities of the budget, with about Tsh500 b ($313 m) allocated to power generation, transmission and distribution.

Construction of the gas pipeline from Mtwara to Dar es Salaam will be accomplished using a $1.23 b (Tsh 2 t) loan from the Exim Bank of China.
The budget has transport on its top priorities, with Tsh 1.4 t ($875 m) allocated to strengthen the central railway line by renovating the train engines and wagons. The allocation will also target priority roads with the potential of opening up economic activities.

Establishment of an Agriculture Bank and increased capital in the Tanzania Investment Bank, Tanzania Women Bank, Tanzania Postal Bank and Twiga Bancorp are the strategies that envisage availing the youth with credit facilities.
The government also expects to create jobs through construction and upgrading of roads, electricity, agriculture and communication infrastructure networks while the private sector was encouraged to use the private sector development window at the African Development Bank to create more jobs.
During the 2012/2013 fiscal year, the government plans to employ 71,756 Tanzanians in education, health, agriculture and other sectors. The budget, whose consumption expenditure accounts for over 70%, leaving only Tsh 4.5 t ($2.85 b) for development, is 30% dependent on foreign funding.
Local sources of funding that include tax revenues, non-tax revenues, local government authorities collections and domestic borrowing will generate Tsh 10.7 T ($6.69 b) out of the expected total revenues of Tsh 15t ($9.48 b) .
Meanwhile, the government has set aside Tsh128b ($80m) in the 2012/2013 national budget to promote industrial production of goods from locally produced raw materials and improve business environment to stimulate economic growth.
The budget allocation targets industries that add value to minerals, large cement factories and electronics as well as information and communication technology.
The minister said the government will strengthen financial services, the credit and cooperative societies, village community banks and community banks, in particular, to avail people with access to credits for businesses and productive activities.
The budget estimates through which the government seeks to increase credit to the private sector to 20% of gross domestic product by June 2013, show a Tsh2.6 b ($1.63 m) allocation to boost the capital of Tanzania Women's Bank, Economic Empowerment Fund and Small Enterprises Loan Facility.
allAfrica.com: Tanzania: Emphasis On Energy

 

[Geza Ulole]

I have a problem with this growth rate percentage. Always stagnant never rising or going below. Always stuck at 6.5% for a decade now. I would have put a question. This stunted growth rate, how do you expect to cater for your energy needs? And if you keep sustaining expensive modes of energy production, what goes into the national reserve. And for now agro-based economic trading is simply coming to a close, due to expanded GMO technologies that is taking root in SA and other west african nations.

I did not follow proceedings because I was busy but give me the percentage allocation for energy and we calculate now that we know that only a paltry 30% will go to developments like infrustructure and others.

actually it was around 8% before globally recession and this year will grow at 6.8!

Tanzania: Emphasis On Energy

By Leonard Mwanga, 19 June 2012

• Comment

Dodoma - Finance and Economic Affairs Minister Dr William Mgimwa has unveiled the 2012/2013 national budget estimates that targets an economic growth of 6.8%, detailing swift measures to ease the economic hardships that afflict the people.
Mgimwa said the Tsh 15 trillion ($9.48 billion) budget seeks to tame rising inflation, food insecurity and unemployment, with specific emphasis on power generation, infrastructure development, strengthened revenue collections and tight control on public expenditure.
In order to develop the agriculture sector the government plans to partner with the private sector to invest heavily in rice and sugarcane farming in the country's major valleys include Wami, Ruvu, Kilombero and Malagarasi, as strategic measures to curb food shortages.
"The government plans to guarantee food security through increased production of food crops," Dr Mgimwa said of the single digit inflation targeting budget, hinting that the government will adhere to the pillars of multib Kilimo Kwanza initiative.
The agriculture, fisheries and livestock sector has been allocated Tsh262 b ($166 m) in the budget. Mgimwa said that reliable availability of electricity was among the top priorities of the budget, with about Tsh500 b ($313 m) allocated to power generation, transmission and distribution.

Construction of the gas pipeline from Mtwara to Dar es Salaam will be accomplished using a $1.23 b (Tsh 2 t) loan from the Exim Bank of China.
The budget has transport on its top priorities, with Tsh 1.4 t ($875 m) allocated to strengthen the central railway line by renovating the train engines and wagons. The allocation will also target priority roads with the potential of opening up economic activities.

Establishment of an Agriculture Bank and increased capital in the Tanzania Investment Bank, Tanzania Women Bank, Tanzania Postal Bank and Twiga Bancorp are the strategies that envisage availing the youth with credit facilities.
The government also expects to create jobs through construction and upgrading of roads, electricity, agriculture and communication infrastructure networks while the private sector was encouraged to use the private sector development window at the African Development Bank to create more jobs.
During the 2012/2013 fiscal year, the government plans to employ 71,756 Tanzanians in education, health, agriculture and other sectors. The budget, whose consumption expenditure accounts for over 70%, leaving only Tsh 4.5 t ($2.85 b) for development, is 30% dependent on foreign funding.
Local sources of funding that include tax revenues, non-tax revenues, local government authorities collections and domestic borrowing will generate Tsh 10.7 T ($6.69 b) out of the expected total revenues of Tsh 15t ($9.48 b) .
Meanwhile, the government has set aside Tsh128b ($80m) in the 2012/2013 national budget to promote industrial production of goods from locally produced raw materials and improve business environment to stimulate economic growth.
The budget allocation targets industries that add value to minerals, large cement factories and electronics as well as information and communication technology.
The minister said the government will strengthen financial services, the credit and cooperative societies, village community banks and community banks, in particular, to avail people with access to credits for businesses and productive activities.
The budget estimates through which the government seeks to increase credit to the private sector to 20% of gross domestic product by June 2013, show a Tsh2.6 b ($1.63 m) allocation to boost the capital of Tanzania Women's Bank, Economic Empowerment Fund and Small Enterprises Loan Facility.
allAfrica.com: Tanzania: Emphasis On Energy



20th June 12
MPs: Boost dev budget to 40 pct

Felix Andrew
Members of Parliament have urged government to increase its expenditure on development from the current 30 percent to 40 percent and while at it, to address all loopholes especially what they see as excessive tax exemptions.
They argued that these massive tax breaks contradict the governments need to raise its income.
Tanga Urban legislator, Omar Nundu (CCM) insisted that the budget has to address development issues. Citing action taken by countries like Korea, Indonesia and Taiwan, Nundu maintained the need to ‘emulate these Asian countries' which he said had developed their economies through the establishment of various development projects.
On a different topic, Nundu, who is the former Transport Minister, also recommended that the government review allowances granted to senior government officials traveling abroad since it is a burden to the taxpayers. Currently, they are paid USD 500 per diem.
From travel to salary rates for government employees, Nundu saw the current pay as excessive and unhealthy for the country's development.
"…how can a public service personnel get paid a salary equivalent to that of 100 of his employees?" he queried.
Public-Private Partnership is a government initiative launched in 2010 aimed at increasing cooperation between the public and private sector, the MP pointed out, saying it is time for the government to fast track its implementation in order to bring development.
Pauline Gekul, Special Seats (Chadema) reiterated the MPs' call to have a drastic reduction in tax exemptions. "Last year alone, goods and services worth over 1.6trn/- were exempted from tax…this is a shame to our nation."
She called for an increase in development expenditure giving as an example some 700bn/- allocated to district councils for development projects which she called ‘insufficient' given the said areas population which she referred to as ‘many people'.
The Kasulu legislator, Moses Machali (NCCR Mageuzi) asked the Finance Minister to explain why a big part of last year's development projects have not been implemented and then moved back to recommendations advising the government to create incentives that will encourage mining companies to operate efficiently and attract even more investment.
John Cheyo Bariadi (UDP) said he found the budget unsatisfactory and offered what he believes caused this shortcoming, "…budget formation was not participatory and had neither public input nor that of the members of Parliament."
Leticia Nyerere, special seats (Chadema) too had some recommendations for the government. "…increase alternative sources of energy such as wind and gas to fight the persistent power shortages.
David Silinde Mbozi West (Chadema) wondered why Tanzania has failed to develop its water sector while there are a lot of rivers and lakes. He gave Libya and Egypt as examples noting these are desert countries yet almost 80 percent of their population has access to clean water.
Modestus Kilufi, Mbarali (CCM) claimed the budget has nothing to offer herdsmen, and farmers and seconding Kigoma-South legislator David Kafulila (NCCR Mageuzi) who called increased spending in agriculture.
Other house members set conditions to be met by the government if it hopes for their support in approving the proposed budget, which in the opinion of Special legislator Ester Bulaya (CCM) is "…not realistic since it does not offer answers to the ordinary people…"and for that reason, "…I will not support the budget unless I receive detailed explanations on various development issues.
Meanwhile Deputy Speaker of the National Assembly Job Ndugai yesterday ordered Ubungo legislator John Mnyika (Chadema) out of the debating chamber after his failure to heed a directive to withdraw his statement that President Jakaya Kikwete's leadership is weak. He was ordered to stay out until this morning when MPs resume business.
The Deputy speaker informed him that he was in violation of section 73 (2) of the Parliamentary Standing Orders which restricts MPS from to using abusive language during proceedings and further grants the Speaker powers to send out any MPs not in compliance.
Earlier debating on the budget estimates the MP said this year's budget would not meet people's expectations because it was very similar to last year's which, in his opinion, did not do much for the people.
Mnyika gave an example that while last year Parliament allocated 600bn/- for the water sector but only 192bn/- have been implemented so far.
Speaking outside the Parliament Mnyika pointed out articles 90 and 99 of the country's constitution that apparently give the President ‘a lot of power' on budget matters.
He used his interpretation of the said articles as grounds to refer to the budget as, ‘the President's budget' and for that reason in his view, then the country has been given an unrealistic budget as a result of the President's weakness!
Mnyika, expounding on yet another article, 90 (2) (b) of the Constitution that apparently grants the president power to dissolve the House in the event that parliament refused to endorse it hence he maintained that "…even though the MPs will debate the budget but at the end of the day they have to endorse it because if they don't do so the Parliament will be dissolved.".

THE GUARDIAN
MPs: Boost dev budget to 40 pct

 

[Kabaridi]

Geza Ulole
This is actually good planning but budget allocations for basic infrastructure like roads looks like is poorly address. What is prominently striking and ironical is the struggle by tz authorities to emphasize the fact of piping gas and yet water services and delivery is poorly addressed;

I can see citizens are neglected despite the obvious strict adherence to Ujamaa politics that is failing to address the acute water shortage to all citizens. take a caption from all africa. There is outcry amongst your leaders.

........."Mnyika gave an example that while last year Parliament allocated 600bn/- for the water sector but only 192bn/- have been implemented so far."

The middle class in Arusha City install water tanks to store water from taps when it is available. But soon this category of people will remain with empty tanks when most people have installed such tanks at their premises. The reason is that the amount of water which is available for residents of the City is simply not enough. It reminds of the problem of sharing a resource which is inaccessible or its quantities are inadequate.


Other residents of Arusha dig wells to supplement quantities of water supplied by the Water and City Authorities. Such people are forced to meet neighbours who visit to queue for water at the wells. The owners may view the neighbours as intruders. They would feel insecure and nervous.

 

[Geza Ulole]

Geza Ulole
This is actually good planning but budget allocations for basic infrastructure like roads looks like is poorly address. What is prominently striking and ironical is the struggle by tz authorities to emphasize the fact of piping gas and yet water services and delivery is poorly addressed;

I can see citizens are neglected despite the obvious strict adherence to Ujamaa politics that is failing to address the acute water shortage to all citizens. take a caption from all africa. There is outcry amongst your leaders.

........."Mnyika gave an example that while last year Parliament allocated 600bn/- for the water sector but only 192bn/- have been implemented so far."

The middle class in Arusha City install water tanks to store water from taps when it is available. But soon this category of people will remain with empty tanks when most people have installed such tanks at their premises. The reason is that the amount of water which is available for residents of the City is simply not enough. It reminds of the problem of sharing a resource which is inaccessible or its quantities are inadequate.


Other residents of Arusha dig wells to supplement quantities of water supplied by the Water and City Authorities. Such people are forced to meet neighbours who visit to queue for water at the wells. The owners may view the neighbours as intruders. They would feel insecure and nervous.

Man i believe u don't have a slight idea on what u r arguing about unless u prove to me that 90% of people in Nairobi have access to clean water or assure me there won't be 11 mio. people up North suffering hunger in this year to pacify those capitalist policies of urs then u can comfortably hand pick some isolated stuffs like this one! Please try not to be irrational and forget the bigger picture of our argument which is on budgets of these two countries and not on that isolated water issue in Arusha! BTW there is Millenium Challenge Account that deals with that specific issue putting aside WB and AfDB funds that r upgrading Arusha city at the moment! Be smart on ur arguments and try not seeking a self fulfillment of ur ego....

Moreover read here

Print Back to story

EU May Raise Tanzania Energy, Transport Spend on Gas Find

By David Malingha Doya - Jun 8, 2012
The European Union, Tanzania's biggest trading partner, may increase energy and transport investment in East Africa's second-biggest economy as it prepares to ramp up offshore natural-gas output.
"Tanzania needs a sequence of infrastructure investments before the gas begins to flow such as expanding ports and pipelines," Filiberto Ceriani Sebregondi, the EU's ambassador to Tanzania, said in a June 6 interview in Dar es Salaam, the commercial capital. "We will support and mobilize funding from institutions like the European Investment Bank for infrastructure development particularly energy and transport."
Explorers in Tanzania and Mozambique have discovered about 100 trillion cubic feet of gas resources, almost enough to meet global demand for a year. The EU accounts for 57 percent of Tanzania's exports and 22 percent of imports, according to Southern African Development Community data. The nation produces gas from at least two offshore fields for power generation.
The EU will have provided the country with 600 million euros ($757 million) in the five years through 2013, including 140 million euros for roads, Sebregondi said.
"Indications are that we may scale up our funding on energy and transport for the next funding cycle for 2014-2020." he said. "We are not yet sure how much money will be allocated in the next cycle, but right now we are availing 100 million euros every year."
Port, Power Investment

BG Group Plc (BG/) and Ophir Energy Plc (OPHR) last month said they found more natural gas off Tanzania, about 45 kilometers (28 miles) north of the maritime border with Mozambique, where explorers have made the largest gas discoveries of the decade.
"Discoveries of gas are important, but in Tanzania, the challenge is that they are scattered.," Sebregondi said. "In Mozambique, they are more concentrated."
The EU is advising Tanzania on developing gas policy, which could be completed in one or two years, that will outline infrastructure investments, and how to manage resource revenue, environmental concerns, inflationary effects, local content and skills development, he said.
"We are still talking to government about the policy, but may suggest experiences from other countries such as a heritage fund to manage peak income, and a stabilization fund to manage inflationary pressures," Sebregondi said.
Tanzania's economy expanded 6.5 percent in the fourth quarter from a year earlier, the statistics agency said May 7.
To contact the reporter on this story: David Malingha Doya in Dar es Salaam at dmalingha@bloomberg.net
To contact the editor responsible for this story: Antony Sguazzin at asguazzin@bloomberg.net
EU May Raise Tanzania Energy, Transport Spend on Gas Find - Bloomberg

 

[kshaka]

^^ the guy is proud of their begging?? :lol:

 

[Kabaridi]

So you believe I am only keen on contextualizing the water "isolated case". There are many more problems that can be discussed but you have adviced to stay within topic. I beleive all this probelms TZ is facing is as a result of lacking proper modalities for transfer of autonomy to local governments. The monotonous central government policy is undertaking fund-allocations through a centralized system. That is why such "isolated" cases are there. I believe a budget should be people driven. From your legislators, I can see there is some shortfall with the budget because it does not have a trickle-down effect to cushion the "people" (legislator did not specify).

If Arusha is the administrative capital an with such things happening, then we do not even need to try and even speculate what is happening down at the rural areas where a huge percentage of over 60% is residing. If you want to know a government that holds the interests of their people, just have a peek at the delivery of the very neccessary services delivery like water, health, and electricty. This are the commodities that speaks volumes about a government and its position with the people. Whether there is harmony with the government and its people or not (As per the will for implementation of agreed initiatives).

"Earlier debating on the budget estimates the MP said this year's budget would not meet people's expectations because it was very similar to last year's which, in his opinion, did not do much for the people."

Your budget is not people driven; It is more inclined in running the obvious and basic neccessities for your population, which should always speak for itself Health/education/employment. You also seek to emphasize income source from international donor funding as a foundation with infalibility. Right now EU is backing you on virtually everything and we are worried with such a trend. Cause even Uganda are not heavily dependent on such international borrowing, they have began a fiscal decentralization scheme. But the EUROZONE quagmire, not withstanding, it is hard to imagine where, the EU is finding all these proposed money to facilitate or aid almost 70% of your projects from mining and other like agriculture. *A developed barter trade. An exchange for land for rent.*

Here is a snapshot of the 2012/2013 budget statement read by Finance Minister Robinson Githae.

This year's budget was a record Ksh 1.45 Trillion and infrastructural projects in the country were the biggest gainers.
Ksh 268.1 Billion has been set aside for infrastructure development.

Orphans and vulnerable children will receive Ksh 4.4 Billion while deserving elderly people will receive 2,000 monthly from the Ksh 1 Billion Fund.

Bright orphans were allocated Ksh 1.1 Billion for their bursary.

Kenya Youth Empowerment project will receive Ksh 490 million while the Youth Enterprise and Women Funds have been boosted by Ksh 450 million and Ksh 550 million respectively.

CCTV will be installed in the Central Business District at a cost of 4.15 Billion
Ksh 148 Billion for the county governments.

Ksh 1.8 Billion for resettlement of the Internally Displaced Persons (IDPs).
Education sector gets Ksh 233 Billion:

Ksh 300 million for sanitary towels for poor girls in the country
1.8 Billion for classes
Free Secondary education has been given 19.3 Billion

Ksh 1 Billion to enforce the Alcohol Control Act popularly known as the ‘Mututho Law'
IEBC will receive Ksh 17.5 Billion

Health sector: Ksh 85 Billion that is expected to employ 5,200 health workers and 900 doctors
Inputs for Medical Kits will be exempted from duty

Increase in duty of galvanized wire from a zero-rating to 10% in order to protect local industries.
Agriculture: Ksh 8 Billion for irrigation
Ksh 10 Billion for Agribusiness
Duty on food supplements will be reduced from 10% to 0%
Ksh 1.5 Billion to write off Farmer's debts

Roadblocks and weighbridges to be removed so as to ease trade in the region.
Ksh 1.45 Billion for rail commuter system
Ksh 83.5 Billion allocated for security
Zero-rate duty on set-top boxes that will be used in digital TV migration
KRA will embark on mapping all residential areas to ensure all landlords are brought into the tax net and all rental income taxes are paid.
Duty on secondhand cloths (Mitumba) import to be reduced.
Other things to note on the budget are; No tax exemptions by virtue of holding public office, Banks to absorb liability of omissions and commissions of their agents and recommendation of introduction of laws to regulate the scrap metal business. The government has suffered greatly from vandalism on railway lines and theft of road signs, breaking of the proposed law will lead to a fine of Ksh 1 million.

NB
What is admirable about this budget it is that some if not all social problems have been identified and addressed like the ones i have marked with red.

 

[Geza Ulole]

^^ the guy is proud of their begging?? :lol:

Like the way the GOK did here

Kenya: US$ 190 Millions for Nairobi-Thika Highway Improvement

Kenya: US$ 190 Millions for Nairobi-Thika Highway Improvement
​

Tunis, 21 November 2007 – In line with its growing emphasis on infrastructure development, the African Development Bank (AfDB) Group will support the improvement of the Nairobi-Thika highway project in Kenya following the approval of a loan and a grant totaling 121 million Units of Account (UA*) equivalent to US$ 190.2 million, by the Board of Directors of the African Development Fund (ADF), the concessional window of the Bank Group, on Wednesday in Tunis.
The loan of 117.85 million UA (US$185.25 million) and grant of 3.15 UA (US$4.95 million) will be used to finance the entire foreign currency and part of the local currency costs of the road improvement project.
The project aims at improving road transport services along the Nairobi-Thika corridor and enhancing urban mobility within the metropolitan area by reducing traffic congestion. It will contribute to the development of a sustainable urban public transit system for the Nairobi Metropolitan Area as well as promote private sector participation in the management, operation, and financing of road infrastructure in Kenya. The overall goal of the project is to improve the accessibility, affordability, and reliability of the transport infrastructure system in order to promote economic growth and socio-economic development in Kenya as well as contribute to regional integration in the eastern and horn of Africa regions.

The project has the following components:

• Civil Works Nairobi-Thika Highway Improvement;
  
• Civil works for the Nairobi city Arterial Connectors;
  
• Consulting services for the construction and supervision of the Civil Works;
  
• Consulting services for the Nairobi Metropolitan Transit System (Nairobi Metro) Study;
  
• Consulting Services for private sector Participation in the Nairobi-Thika Highway;
  
• Consulting services for project technical and financial audits
  
• Compensation and resettlement of project-affected people.
  

"The project was conceived comprehensively to address not only the Nairobi-Thika corridor but also the growing need for a gradual shift to mass transit systems such as Bus Rapid Transit and Light Rail Transit to address the current Public Transportation crisis in the city and cope with future developments" said Amadou Oumarou, Transportation Engineer and Task Team Leader for the project.
The potential project beneficiaries will be predominantly the people living along the route engaged in various economic activities, especially commuters who work in secondary and tertiary sectors in the Central Business District. The majority of commuters use public transportation especially small minibuses (Matatus) which account for more than 30% of traffic congestion in the city. According to Juste Rwamabuga, the Transport Sector Manager, "The implementation of this project will literally transform the face of Nairobi city and guide the urbanization process by contributing to the redistribution of urban functions and workplaces".
Over 89,500 people residing in Kasarani, Kiambu and Thika are on wage employment and another 125,000 are in the informal sector the majority of whom have to commute to Nairobi. Other distinct groups of commuters are students, health patients, shoppers and traders (formal and informal). With a secondary school enrolment rate of over 60% at least 12,000 students would potentially benefit from the road. In addition, 2 public universities are established along the road, Kenyatta University and Jomo Kenyatta University of Agricultural Technology (JKUAT). Between these two universities are approximately 11,990 students who attend part-time programs (49% women) and who will greatly benefit from an efficient transportation system.
The estimated cost of the project is UA 175.10 million. The ADF loan will finance 69% of the project while the Kenyan government takes charge of the remaining 54.10 million UA, representing 31% of the costs. "This project financed to the tune of US$190 million is the largest single operation ever financed by the concessionary arm of the Bank, the ADF" noted Gilbert Mbesherubusa, AfDB Director for Infrastructure. "It is a clear signal that the Bank Group is engaged in a new direction which put emphasis on infrastructure, selectivity, and bigger size operations" he added.
The AfDB Group began operations in Kenya in 1967. The Bank's cumulative commitments in the country currently stand at US$ 1.3 billion in 88 operations.
* 1 UA = 1.57188 US$ = 102669 KES as at 21/11/2007
http://www.nation.co.ke/News/politics/MPs+can+now+defect+at+will+/-/1064/1431964/-/view/printVersion/-/a909goz/-/index.html

And they r trying to do here

State seeks partners to fund Sh2 trillion Lapsset project

Updated Tuesday, June 19 2012 at 22:12 GMT+3

By James Anyanzwa
The Government has appealed to development partners to help finance the implementation of the Sh2 trillion ($24.5 billion) infrastructure project at Manda Bay, Lamu.
Prime Minister Raila Odinga yesterday told the fourth development partnership forum in Nairobi that the completion of the new transport Corridor Development to Southern Sudan and Ethiopia (LAPSSET) would dramatically alter the economic landscape of the entire African continent.

"LAPSSET project is not utopian, it is a reality. There is nothing wrong with us dreaming that it will transform Africa," said Raila.
"We appeal to our partners to work together on this line."
Raila said the Government has organised an investor conference in September to drum up support for the project.
He said through LAPSSET, intra Africa trade would be a reality.
Raila singled out infrastructure as a key component towards attracting foreign direct investments in the country.
He said insecurity, corruption, poor infrastructure and systems of taxation have increased the country's cost of doing business, making it unattractive to investors.
He gave an example of Rwanda, a country that only recently emerged from pa potentially crippling crisis but has improved significantly in terms of simplifying the rules and procedures of doing business.
According to the World Bank's 2012 Doing Business Report, Rwanda ranked 45th globally with Kenya at the 109th position.
LAPSSET project was officially launched on March, in an event graced by two other heads of State from Ethiopia and Southern Sudan.
President Salva Kiir of Southern Sudan and Prime Minister Meles Zenawi (Ethiopia) joined their Kenyan counterparts in inaugurating a project, which is expected to transform and directly influence the livelihood of more than 230 million people.
LAPSSET corridor seeks to integrate the economies of Southern Sudan, Ethiopia, East and Central Africa and open up the region to global trade opportunities.
The project is crucial to attainment of Kenya Vision 2030 and forms Kenya's second Transport and Economic development corridor that is much wider than the port.


The project's key components include Lamu Port, Lamu-Juba-Addis Ababa railway line, Oil refinery, Lamu-Juba-Addis Ababa oil pipeline, Airports, Lamu-Juba-Addis Ababa highway and Resort Cities
LAPSSET is expected to transform regional economies through increased trade, integration and interconnectivity.
It spans South Sudan and Ethiopia with first time land bridge across the middle of Africa from Lamu, all the way to Douala Cameroon on the Atlantic Ocean coast.


The project's key components include Lamu Port, Lamu-Juba-Addis Ababa railway line, Oil refinery, Lamu-Juba-Addis Ababa oil pipeline, Airports, Lamu-Juba-Addis Ababa highway and Resort Cities
LAPSSET is expected to transform regional economies through increased trade, integration and interconnectivity.
It spans South Sudan and Ethiopia with first time land bridge across the middle of Africa from Lamu, all the way to Douala Cameroon on the Atlantic Ocean coast.

The project kicked off with construction of the initial three berths of the planned 32 berths at the modern port of Lamu.
The port will be three times the size of the current Mombasa Port and the more sheltered Manda bay.
The LAPSSET project is expected to position Lamu Port as an important trans-shipment hub poised to handle crude and refined oil and oil products from the new nation of South Sudan.
The project is expected to trigger employment and economic activities and more than double Kenya' Gross Domestic Product (GDP).
The Government has formed a central coordinating committee based at the office of the prime minister to plan and manage the LAPSSET project implementation modalities prior to and after the groundbreaking ceremony.



The project kicked off with construction of the initial three berths of the planned 32 berths at the modern port of Lamu.



The port will be three times the size of the current Mombasa Port and the more sheltered Manda bay.
The LAPSSET project is expected to position Lamu Port as an important trans-shipment hub poised to handle crude and refined oil and oil products from the new nation of South Sudan.
The project is expected to trigger employment and economic activities and more than double Kenya' Gross Domestic Product (GDP).
The Government has formed a central coordinating committee based at the office of the prime minister to plan and manage the LAPSSET project implementation modalities prior to and after the groundbreaking ceremony.

http://www.standardmedia.co.ke/?art...partners-to-fund-Sh2-trillion-Lapsset-project

And here

[h=1]Kenya Seeks Chinese Loan to Fund Bypass, Business Daily Says[/h]
By Consolatah Lucas - Jul 14, 2011 9:48 AM GMT+0200




Kenya's Treasury plans to start talks with China over a loan to finance a 17.1 billion-shilling ($191-million) southern bypass in the capital, Nairobi, Business Daily reported.
The Kenya National Highways Authority has concluded the design and costing of the project, the Nairobi-based newspaper said, citing the agency's director-general, Meshack Kidenda.
To contact the reporter on this story: Consolatah Lucas in Mombasa at consork@yahoo.co.uk.
To contact the editor responsible for this story: Antony Sguazzin at asguazzin@bloomberg.net.

http://www.bloomberg.com/news/2011-...-loan-to-fund-bypass-business-daily-says.html

And so many

 

[kshaka]

Two things...have you seen any Kenyans here proudly displaying how GoK was going to beg which is what you were doing and what I picked up on?

Secondly; Here's two numbers you shoul keep in mind before you start an argument about this: 33% and 7.8%. I'm sure you know what they mean :lol:

 

[Kabaridi]

Can you see that all those infrastructure projects are under MDG. And the LAPPSET project is being funded jointly by the GOK and other development partners. That means that GK is funding a certain percentage of funds to the $23bn as opposed to over reliance on external donor borrowing. And from the cabinet ministers budget allocation almost $1.45bn out of $16bn set for infrustructure developments is meant to be merged with such loans from China and ADBG. There is a difference when comparisons are made to your model of fundings.

in comparison to


Construction of the gas pipeline from Mtwara to Dar es Salaam will be accomplished using a $1.23 b (Tsh 2 t) entirely dependent on loan from the Exim Bank of China.

The EU will have provided the country with 600 million euros ($757 million) in the five years through 2013, including 140 million euros for roads, Sebregondi said.

"Indications are that we may scale up our funding on energy and transport for the next funding cycle for 2014-2020." he said.

NB.."We are not yet sure how much money will be allocated in the next cycle, but right now we are availing 100 million euros every year."

And the above picture is the one I am trying to create here for you to see; Donors keep you guessing when and how on modalities of loan-grants. Meaning you can't even do economic planning since you do not know how your donor partner might wake-up during the next anticipated donor funds release.

 

[Kabaridi]

Two things...have you seen any Kenyans here proudly displaying how GoK was going to beg which is what you were doing and what I picked up on?

Secondly; Here's two numbers you shoul keep in mind before you start an argument about this: 33% and 7.8%. I'm sure you know what they mean :lol:

Apart from that, I am also trying to explain how the development strategy to be applied by the finance minister is making financial analysts attracted to the idea while still being able to sustain substantial growth levels of above six percent.

 

[Geza Ulole]

Can you see that all those infrastructure projects are under MDG. And the LAPPSET project is being funded jointly by the GOK and other development partners. That means that GK is funding a certain percentage of funds to the $23bn as opposed to over reliance on external donor borrowing. And from the cabinet ministers budget allocation almost $1.45bn out of $16bn set for infrustructure developments is meant to be merged with such loans from China and ADBG. There is a difference when comparisons are made to your model of fundings.

in comparison to


Construction of the gas pipeline from Mtwara to Dar es Salaam will be accomplished using a $1.23 b (Tsh 2 t) entirely dependent on loan from the Exim Bank of China.

The EU will have provided the country with 600 million euros ($757 million) in the five years through 2013, including 140 million euros for roads, Sebregondi said.

"Indications are that we may scale up our funding on energy and transport for the next funding cycle for 2014-2020." he said.

NB.."We are not yet sure how much money will be allocated in the next cycle, but right now we are availing 100 million euros every year."

And the above picture is the one I am trying to create here for you to see; Donors keep you guessing when and how on modalities of loan-grants. Meaning you can't even do economic planning since you do not know how your donor partner might wake-up during the next anticipated donor funds release.

can u pls tell me how much has so far ur GOK injected in LAPSSET and how much here and here and here? and BTW most of the projects i.e. infrastructure the GOT also inject its quota that's why we set a budget for that! That's a universal policy! Go and sleep man u have no point on ur argument!

 

[Dhuks]

Geza does not know that taking a load and begging are two different things, you can only be advanced a loan based on you creditworthiness that's why Afdb has been issuing several development loans to the Gok to upgrade its infrastructure. That Thika road loan example smacks of someone who is clutching at straws. :lol::lol::lol:

 

[Mekatilili]

33% and 7.8%.

 

[Geza Ulole]

Geza does not know that taking a load and begging are two different things, you can only be advanced a loan based on you creditworthiness that's why Afdb has been issuing several development loans to the Gok to upgrade its infrastructure. That Thika road loan example smacks of someone who is clutching at straws. :lol::lol::lol:

what is this? if u meant a word loan then there is no difference between budget support and loan since both of them are not interest free! They r paid at some point with interest on top! I suggest to try to think how u will plug up that 15% deficit in that over ambitiously budget u just tabled! U should laugh at Kibaki that begs Chinese to undertake LAPSSET with interest free loan to Kenya!

 

[Geza Ulole]

33% and 7.8%.

27% and 7.8%+15% (budget deficit) i.e. 22.8%

 

[kshaka]

what is this? if u meant a word loan then there is no difference between budget support and loan since both of them are not interest free! They r paid at some point with interest on top! I suggest to try to think how u will plug up that 15% deficit in that over ambitiously budget u just tabled! U should laugh at Kibaki that begs Chinese to undertake LAPSSET with interest free loan to Kenya!

Funny thing is, even with a deficit, our budget is much larger than you know who's....and by the way, have you read this weeks East African? You should before you gloat at others' economic problems.

P.S. talking about deficits...have a look closer to home!

 

[Geza Ulole]

Funny thing is, even with a deficit, our budget is much larger than you know who's....and by the way, have you read this weeks East African? You should before you gloat at others' economic problems.

P.S. talking about deficits...have a look closer to home!

and And that's why i ask u to go here...! Back to the point, can u pls calculate how much percent is that US$ 600 mio. constitute out of US$ 17 bio. If u r sharp enough u get 3.5% then plus that 22.8% gives 26.3% that has to be given by donors as part of ur budget

 

[kshaka]

and And that's why i ask u to go here...! Back to the point, can u pls calculate how much percent is that US$ 600 mio. constitute out of US$ 17 bio. If u r sharp enough u get 3.5% then plus that 22.8% gives 26.3% that has to be given by donors as part of ur budget

You are making lots of assumptions my good fellow...you can strain as much as you want but you're not proving sh1t to anyone. Not more than 7-10% of our budget is being given by donors...it doesn't matter that you think everything we do is wrong, we are doing things despite your hating. Please refer to@mekatilili's list :lol:

 

[Kabaridi]

As per now the breakdown of the proposed funding is still not out as the proposed funding may be under review or undergoing wider consultations with the respective budget committees. But I have to tell you that the project is jointly funded as opposed to fully funded loan.
Geza Ulole
Apart from the much gloating about borrowing loans with the "interest-tag", is that really expressive of the Tz loan-repayment scheme, since most EA countries have shown some ineptness to repay loans. Now they fall under HIPC, but we now no who tops that list in EA.

Now for China to come in the continent and take-over key development projects is making US and European governments to shelve their imperial systems and take a less bullish-approach and engage in constructive participation like funding other small scale but notable projects here and there in the business sector. And that is how the Chinese factor or involvement in the continent is shaping the big-bro psychology of the west.

Funny as the saying goes if you cannot beat them join them. Effortless media campaign against China's latest involvement in the continent has been unsuccessful.

 

[Geza Ulole]

As per now the breakdown of the proposed funding is still not out as the proposed funding may be under review or undergoing wider consultations with the respective budget committees. But I have to tell you that the project is jointly funded as opposed to fully funded loan.
Geza Ulole
Apart from the much gloating about borrowing loans with the "interest-tag", is that really expressive of the Tz loan-repayment scheme, since most EA countries have shown some ineptness to repay loans. Now they fall under HIPC, but we now no who tops that list in EA.

Now for China to come in the continent and take-over key development projects is making US and European governments to shelve their imperial systems and take a less bullish-approach and engage in constructive participation like funding other small scale but notable projects here and there in the business sector. And that is how the Chinese factor or involvement in the continent is shaping the big-bro psychology of the west.

Funny as the saying goes if you cannot beat them join them. Effortless media campaign against China's latest involvement in the continent has been unsuccessful.

Realy? ours (Tanzania's) has over Tshs 2 trio. allocated to pay our debt! find another thing to talk about :dance: