EASSy deal top be signed soon
Whilst this has been described in the local press as an ownership deal, no details of exactly what form this ownership will take or how it will operate. The shareholding plan for the $200 million (Sh14.6 billion) Eastern Africa Submarine System cable project has been finalised and is set for signing soon.
The head of the Eassy Project Secretariat, Simon Olawo said 15 out 28 companies participating in the project are expected to sign the agreement after getting approvals from their boards of directors. The remaining 13 companies are to sign the agreement within a 60-day window that begins on October 12.
"We expect that by December 12 we should be able to determine how much money is available to allow us to sign a construction agreement with the cable contractor and for the project to take-off," he said on the sidelines of a meeting on the project in Nairobi yesterday.
Telkom managing director Sammy Kirui, who is also the chairman of the Eassy project management committee, attended the meeting.
Donor countries have already pledged to make available a maximum of $170 million to finance the project. Most of the East and South African regions are represented. Olawo explained that the funds, mainly from the World Bank, African Development Bank, Development Bank of South Africa, European Development Bank and KfW of Germany, will be available to the parties to the project who are unable to raise enough money internally.
The EASSy project was created with the objective of connecting countries from the tip of southern Africa to the Sudan to other countries of the world through the installation of a submarine optical cable.
The agreement set for signing tomorrow defines shareholding structure, rights and obligations and also how the system would be constructed and maintained over its estimated 25-year life cycle.
Olawo said ongoing disagreement over terms of involvement of the New Partnership for Africa’s Development in the project would not affect the project’s progress.
The Government has previously said it would opt out of Eassy in favour of The East Africa Marine system (Teams), a parallel cable system. Since it is also the majority owner of Telkom Kenya whose Managing Director Chairs the Project Management Committee, it is unclear what it hopes to achieve.
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