The dispute over ownership of the land, a road reserve, is between KFS and KeNHA.
A senior KFS official revealed that neither KeNHA nor KFS has the title deed of the land in question.
KFS remained optimistic that works for the project, expected to take two years, will start by June.
A dispute over ownership of a piece of land between two parastatals is holding up construction of the multi-billion shilling cable car project in Likoni.
Ground-breaking of the Sh5.8 billion development was set for this month but to date, no construction has begun at the site that sits on both sides of the Likoni channel in Mombasa County.
The dispute over ownership of the land, a road reserve, is between the Kenya Ferry Services (KFS) and the Kenya National Highways Authority (KeNHA).
KFS, a partner in the Public-Private Partnership (PPP) project, is fighting to secure the road reserve where a substation of the cable cars project will be set up.
However, reliable sources revealed that KeNHA had asked the KFS to pay some money to secure the road reserve.
A senior KFS official revealed that neither KeNHA nor the ferries agency has the title deed of the piece of land in question.
“That is why KFS has decided not to pay resulting to the delay. But talks are on for the two to settle the matter as they are both government entities,” said the source.
Cabinet
Speaking in an interview, KFS managing director Bakari Gowa agreed that there was a dispute but also noted that there were other issues causing the delay.
“That (the differences) is partly causing the delay but it in is not the main issue. It is a matter that is under discussion but as we speak we already have a go ahead to continue with the project...The main delay is with the Cabinet where the project is supposed to be approved before its implementation,” said Mr Gowa yesterday.
If approved, the two parties sponsoring the project - Trapos Limited and the KFS - will put down their signatures on the same.
Mr Gowa remained optimistic that works for the project, expected to take two years, will start by June.
Trapos and KFS signed the concession agreement of the multi-billion shilling project last December.
Commuters using the busy Likoni channel were expected to start enjoying cable car services from 2020.
Concession
The government had already settled on an Austrian firm Doppelmayr Group to handle installation of technology for the project.
Once installed, the project will be handled by Likoni Cable Cars Express Ltd for 25 years.
After the 25-year concession, KFS or any eligible company will upgrade, maintain and ensure delivery to users.
The express link will have 22 cable cars which will carry 38 passengers per cabin. It is projected to carry 11,000 commuters per hour in both directions, a total of 180,000 people a day.
Commuters will cross the 500 metre channel in about three minutes and will pay between Sh20 and Sh100 depending on the mode and type of operation.
At the moment, five ferries - Mv Nyayo, Mv Kilindini, Mv Harambee, Mv Likoni, Mv Kwale, and Mv Jambo - are used to transport commuters across the channel daily.
The KFS is also expecting a seventh vessel, Mv Safari, set to arrive in October this year to help ease congestion.
