Sudan has voiced concerns that the commissioning of the Lamu Port and several other key infrastructure projects in the Horn of Africa risk undermining its economy, a sign that Khartoum is increasingly feeling isolated from the region.

Sudan’s deputy head of mission in Nairobi said there was a plan to alienate the country from the regional economy. Ali Mahmoud Abdurrasoul, the Sudanese Minister for Finance and National Economy, said that out of the nine infrastructure projects under the Inter-Governmental Authority on Development (Igad), only two included Khartoum, with the majority involving Kenya, Ethiopia, Uganda and now Somalia.

Khartoum officials said the country has tabled a complaint of economic sabotage with the African Union team handling its negotiations with Juba.

The new pipeline deal came only months after the East Africa Community declined Khartoum’s application to join the bloc, while agreeing to admit South Sudan as an observer member.

(Read: Why Khartoum failed in its bid to join EAC)

It is such developments that convince Khartoum of the ill intentions of the EAC member countries. The commissioning of the Lamu project is realigning East Africa’s geopolitics. Khartoum views the planned crude oil route as a plan to sabotage its economy, while a senior Ugandan official said the pipeline’s route should be extended to connect the country’s new oil fields.

Sudanese officials attending a regional infrastructure conference in Nairobi last week said the alternative pipeline from Juba to Lamu will make existing pipelines and refinery in the country redundant.

Dire situation

“We are concerned that the pipelines will be a loss for us. It’s a win-lose situation and not a good way to encourage regional economic integration. It is not good for regional politics,” said Hassan Elashi, chairman of the Sudan Chamber of Commerce at the conference on infrastructure and investment organised by Igad.

Khartoum officials appear to have been caught unawares by the swiftness with which Kenya, South Sudan and Ethiopia moved to commission the mega Lamu project.

(Read: South Sudan comes to town shopping for Lamu pipeline)

With the transfer of most of the undivided country’s oil fields to South Sudan, Khartoum has been banking on transport and refinery fees to fill up the revenue void left and to keep its Chinese-built oil infrastructure working. But, Kenya maintained the project is for the benefit of regional efforts to develop joint interconnecting infrastructure projects.

“It is important we make it clear that the idea of this port was floated four decades ago. It was not motivated by the differences between the North and the South. It should be celebrated as a new trade corridor,” said Kenya’s Transport Minister Amos Kimunya.
South Sudan officials said differences with Khartoum over crude transport and refining will take time to resolve and the preference is to have other alternative routes to transport the crude oil.

(Read: Juba seeks Kibaki’s help to end oil standoff)

“South Sudan is very careful now and we cannot trust just anyone. We want to have as many alternative routes as possible,” said Ngiol Bol, Director General of Rail and the Ministry of Transport in South Sudan.

Uganda put out too

Like Khartoum, Uganda too is seeking explanations from Kenya on why it was not adequately consulted and involved in the project when it has made oil discoveries of commercial value.

(Read: Uganda not worried by proposed South Sudan-Lamu pipeline)

“Kenya was aware of our oil discovery and should have carried out wider consultations with us,” said Uganda Minister of Energy and Mineral Development Irene Muloni.

Uganda said it has started engaging Kenyan officials so that the design of the pipeline also links up the country’s oil fields.

“Discrimination against Sudan will not be tolerated. It is not fair that Sudan is a member of Igad but most projects leave out Sudan,” said Mr  Abdurrasoul.

Mayom Kuoc Malek, Deputy Transport Minister in South Sudan, was however insistent that as a landlocked country, it would make sense for Juba to diversify her  routes to the outside world.

“We need to have a pipeline in friendly countries that will not destabilise the transportation of  our products.,” said Mr  Malek, who noted that the resumption of the Northern oil route depends on what happens politically in the near future, and especially in the on-going negotiations in Addis Ababa.