State signs Sh14b deal to kickstart multi-billion Galana irrigation project

Agriculture, Livestock, and Fisheries Cabinet Secretary Felix Koskei.

Kenya: One of the Jubilee Government’s agriculture flagship projects, the one-million-acre Galana Kulalu Irrigation Scheme will kick off in a month’s time.

This follows the signing of a Sh14.5 billion deal between the National Irrigation Board and Green Arava (GA), an Israel fresh produce export company in Nairobi Wednesday.

The Government targets to put one million acres of land under irrigation in the next five years at a cost of Sh400 billion. The ambitious project will be undertaken under a Public-Private Partnership (PPP) model.

Addressing the media during the signing of the agreement at Kilimo House, Agriculture, Livestock, and Fisheries Cabinet Secretary Felix Koskei said GA, on behalf of the Israeli government and in conjunction with the Government of Kenya, would fast-track the setting up of a 10,000-acre model farm to serve as a demonstration unit of the project’s opportunities and achievements.

The awarding of the contract follows conclusion of a feasibility study and a master plan that takes into consideration the soil types, infrastructure needs, security, water resource availability and general development. The study was carried out by Agri-green firm from Israel in association with Amiran between November and December last year.

“We have contracted Green Arava today to spearhead the next level of development of the government’s ambitious irrigation project,” said Koskei.The Government, in the current financial year has set aside Sh3.5 billion to finance infrastructural projects, laying of pipes and construction of dams and other activities in the area. The money to finance the project has been loaned by the Israeli government while Kenya will provide 15 per cent of the cash as commitment fee.

Feasibility studies

The Sh14.5 billion will be committed to finance 10,000 acres. Koskei said Sh2.5 billion will finance setting up of irrigation systems such as green houses, drip and pivot while Sh3.8 billion will cater for logistics, agriculture machinery, training centres and other components.

The operations and maintenance will receive Sh3.4 billion while Sh531milion will be used to finance energy production, and development of a business model. The project is expected to earn the government Sh2.3 billion in form of taxes. Koskei explained that the irrigation project, which had delayed for some months is now on course and will be achieved as scheduled. Barak Tamir,

CEO of the Israeli company together with senior officials signed the agreement. “You know consultancy of projects of this nature mostly take more than two years,” explained Koskei. He added, “You cannot start a project of this magnitude, having not carried out feasibility studies, developed a sound design and providing the necessary infrastructure mainly roads.”

The Galana/Kulalu project hopes to have 500,000 acres of land under maize production, 200,000 acres under sugar-cane farming, 150,000 acres on beef and game animals, 50,000 acres under horticulture, 50,000 acres for dairy farming and the remaining 50,000 acres to grow fruits. He added that after completion of the 10, 000 acres model farm it will be expanded to 100,000 acres.

NIB CEO Daniel Barasa explained that the model farm will be developed in phases of 3,000 acres. Barasa said the model farm will attract investors and interested parties to participate in the project.

“This farm is expected to be expanded to 100,000 acres concurrently with the construction of 406 million cubic meter dam,” said Barasa.