In the lamu coal power project it's coming out that centum was a middle man company in the project.It's now coming out that they didn't have the necessary financial muscle like Ahmednassir mentioned'
"Centum seeks pension funds to finance Lamu coal project"
The pension funds are to contribute 75% of the envisaged equity capital with centum contributing the remaining.The maths is as below;
The cost of the project has been estimated at $2bn or ksh.190mn
A loan of $1.5bn or ksh.142.5bn has been sought from ICBC through connection with the chinese partner in the consortium.
The remaining $500mn or ksh.47.5bn has been split as follows;
Local pension funds to contribute 75% or $375mn or ksh.35.625bn
Centum to contribute 25% or $125mn or ksh.11.875mn
So if you look at the percentage of centum contribution to the total cost of the project it comes to 6.25%
If local pension funds decline to fund the venture;project is in limbo
And to the shareholders of centum how do they stand to benefit?
The stake is insignificant to make an impact.
Wealth is built through a relatively simple equation
Wealth=Income + Investments - Lifestyle