Kenya, South Sedan and Ethiopia may have to pay for some of the petrochemical developments happening in their countries if donor funding does not raise enough money.
The Lamu-Southern Sudan-Ethiopia Transport (LAPSSET) Corridor, which will see a highway, a railway line, a pipeline and a port built for petrochemical transport and storage, is to cost €191 million and developers are worried about not having enough capital to complete the project.
A groundbreaking ceremony for the development will take place on 2 March 2012 and attendees will include the prime minister of Ethiopia, as well as other officials of Kenya and South Sudan. It is thought investment ideas might be further discussed at this meeting.
The LAPPSET project is to link the petrochemical facilities in the three countries, allowing trade to be further developed and increasing the infrastructure which is currently rundown or non-existent.
The pipeline will be 1,288km long in Kenya and 427km in length in Southern Sudan, with a capacity of about 500,000bpd. If all goes to plan, the project should be completed within the next 18 months.
Another pipeline for refined oil will also be built, with a capacity of 82,400bpd.