The government will be the biggest beneficiary of the Sh4.1 billion Likoni Cable Cars project, Transport Cabinet Secretary James Macharia has said.
Although the project is being undertaken through the Public Private Partnership, Mr Macharia said its value will stand at Sh20 billion at the end of the concession period.
Last week, the Cabinet approved the construction of the cable cars at the Likoni channel.
“The project is done through the private sector. The government is not putting a single penny in it.
"It is being done through the Public Private Partnership, through a company called Trapos Limited. Upon completion, the cars will be carrying about 187,000 passengers every day, compared to the current ferry passenger capacity of 350,000,” he said.
Speaking in Mombasa, Mr Macharia said it was critical for the government to keep the project going.
Kenya Ports Authority through Kenya Ferry Services (KFS) will also be a stakeholder in the project, and hence the government will be getting a return from the investment.
“Upon the end of the concession, the private sector will give us the investment back and by then, it will be valued at almost Sh20 billion. The project is good for us and it is the modern way of doing transportation across the sea.”
Once installed, the project, which is expected to decongest the busy Likoni channel, will be handled by Likoni Cable Cars Express Ltd for 25 years.
After the 25 years concession, KFS or any eligible firm will upgrade, maintain and ensure delivery to users.
Commuters will cross the channel in about three minutes, and pay between Sh20 and Sh100 depending on the mode and type of operation.