Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Copy Public Disclosure Copy I. Decision Estimated DateofBoardApproval Estimated DateofAppraisalCompletion Date PIDPrepared Environmental Category Implementing Agency Borrower(s) Project ID Lending Instrument Sector(s) Country Region Project Name Project Context Kenyatta InternationalAirport(JKIA) andtransittotheneighboringcountries. northern corridorthroughNairobi remains oneofthemajorbottlenecksonflowtraffictoCentral BusinessDistrict(CBD),Jomo circumstances hadchangedsignificantly bothattheprojectandcountrylevelleadingGoKtocancel theprocess.Thecongestionin offer attractedlimitedinterestfrom theprivatesectorandconcessioningprocesstookinordinate time,abouteightyears,duringwhichperiod a concession,underthedefunctNairobi UrbanTollRoadProject(NUTRP)whichwastobesupported bytheWorldBankGroup.However,this instance, inNairobi,GoKresponded tothischallengebyofferingasectionofthecorridorprivate sectorforexpansionandtollingthrough sections ofthiscorridoradjoining majortownsandoftenpassingthroughthemareheavilycongested andrequirecapacityexpansion.For recently improvedorimprovementisunderway.Thiscorridorforms partofthemainarteriesinmajortowns.Thechallengeisthat ’s mostimportanttransportroute,andacrucialarteryforits land-locked neighbors.Mostofthenortherncorridorroadhaseitherbeen , EldoretandNakuru-thelargesturbancenterswith highestindustrialactivity.Theyarealllocatedalongthenortherncorridor, 5. urban areasinsupportingKenya’sefforttodevelopamiddleincome countrywillinevitablybecomeapolicypriority. hand, increasedwithmushroomingofinformalsettlementsinmajor towns.Hence,establishingamediumtolong-termvisionontheroleof the economicactivitiesinurbanareas,mainlygrowthofmanufacturing andservicesectors.Povertyinurbanareashas,ontheother 4. associated withthemovementoutofpoverty. Infrastructure DiagnosticforKenya,andits2006PovertyAssessment, allsupportthisagenda,showingthatimprovedinfrastructureis therefore playacriticalroleintherealizationofthisvision.TheWorld Bank’sCountryPartnershipStrategy(CPS),its2008-09Multi-Donor necessary totransformKenyafromalowmiddle-incomecountryby2030.Theurbanareas,astheenginesofeconomicgrowth, will necessary tounlockingexistingpotentialandproductivity,promotionofcompetitiveness,improvedaccessinfrastructureservices, all gross domesticproduct(GDP)isexpectedtogrowat10percentperannum.Thiscallsfortheremovalofbottlenecksgrowththrough reforms 3. is rifewithexternalitiessuchastrafficaccidents,noiseandpollutionassociatedfuelemissions. on urbanservices,includingtransport,ultimatelyaffectingbotheconomicproductivityandcitizens’qualityoflife.Inparallel,thetransport sector basic publicservicesinurbanareascomparedtoruralhasworkedasacatalystformigration.Thisplacedtremendous strain areas fromruralwherethereturnstolaborareconsideredrelativelylower.Thehigherstandardoflivingandrelativebetteraccess to The numberofurbandwellersincreasedinsearchemploymentandschoolingopportunitiesasmarketforcesattractedlabortothe urban projected toreach5.2millionin2020.Thehighpopulationgrowthexperiencedurbancentersisdueseveraleconomicandsocial factors. Similarly, thepopulationofcityNairobiwas828,000in1979andnowstandsatover3millionor25percenturban andis percent urbanupfrom15in1979,anditisprojectedtoreach19.1millionor37202029.847 in2030. in 1979andincreasedto38million2009,withanaverageannualgrowthrateof2.5percenttherecentpast.Thepopulationisnow 32 2. and theimpactofdroughtslowedthisgrowthto4.3percentin2011. level ofactivityattheNairobiStockExchange.However,recentriseininflationaveraging14percent2011comparedto3.9 in2010, prospects haveimproved.Inflationdeclinedtobelowfivepercentin2010andinvestorconfidencegrewrapidlycontributingthedoubling ofthe 5.7 percentarisingmainlyfromarecoveryinagricultureandindustrialoutputrelativelybalancedgrowthacrossallthesectors. Growth 1. Country Context Much oftheGovernmentKenya’s(GoK)effortsforeconomicdevelopment arefocusedon“growthpoles”suchasNairobi,, Significant growthinGDPisattributedtoeconomicactivitiesKenya’s urbanareas.About75percentofGDPcanbeattributedto Vision 2030,thelongtermdevelopmentstrategy,aimsattransformingKenyaintoamiddleincomecountry.Underitseconomicpillar, The totalpopulationofKenyahasincreasedrapidlyoverthelast30yearsandiscontinuingtourbanize.was15million Kenya hasrecordedacomparativelyhighereconomicgrowthaftertwodecadesoflowgrowth.In2010,theKenyaneconomygrew by Authorized toappraiseandnegotiatetheproject. 21-Jun-2012 14-May-2012 11-May-2012 B-Partial Assessment Corporation, MinistryofRoads Kenya NationalHighwaysAuthority,UrbanRoadsMinistryofTransport,Railways Ministry ofFinance P126321 Specific InvestmentLoan Rural andInter-UrbanRoadsHighways(85%),Generaltransportationsector(10%),Railways(5%) Kenya AFRICA KENYA: NATIONALURBANTRANSPORTIMPROVEMENTPROJECT(P126321) PROJECT INFORMATIONDOCUMENT(PID) APPRAISAL STAGE Report No.:PIDA320 Public Disclosure Copy Public Disclosure Copy II. provision ofpublic transportinfrastructurebecomes critical. Across urbantransport modesinlowandmedium incomecountries,publictransport playsapivotalroletoenhance cityefficiencyandhencethe and affordableurbantransportis regarded asacatalystforhigherproductivity,greateraccesstoeconomic opportunities,andsocialinclusion. transport corridormanagement,and inadequateoperationsandmaintenancebudgets.Yet,mobility andaccessibilityprovidedthroughefficient 15. their responsibilities.Havingrecognized thisrisk,theprojectallowsforanyrestructuringthatmaybe neededduringimplementation. changes arerecommended,thetransition islikelytotakethreefouryearsbeforecapacitybuilt inthecountiesandnewinstitutionstakeover documents. Thecommitteehasstarted work,facilitatedundertheBank-financedKenyaTransport Sector SupportProject(KTSSP).Evenif arrangements andfunctions,takingintoaccounttherecommendations ofthedraftINTPandroadspolicy,otherrelevantpolicy recommend agovernancestructureconsistentwiththenewconstitution, andalsotoharmonizerationalizethecurrentinstitutional and theloomingchanges,GoKhasrespondedbyestablishing aninter-ministerialcommitteeforthetransportsector,toreviewand (MTR) toadjusttheimplementationarrangementsaccordinglywhen theneedarises.Inreadinessforimplementationofnewconstitution governments. TheNUTRIPrecognizestheseuncertaintiesandwill makeprovisionsforpossiblerestructuringatorbeforetheMidTermReview be someconsolidationofministriesatanationallevelanddevolution ofsomepowersandresponsibilitiestothelowercountymunicipal 14. KeRRA andKURAasmostoftheurbanruralroadscouldfall under thecategoryofcountyroads. than acentralizedsystemofgovernment(aswasthecaseunder oldconstitution)implyingafurtherrealignmentofthemandatesKeNHA, recognizes twocategoriesofroads,nationalandcounty,whichcalls forfurtherchangesingovernancestructuresbasedonadevolvedrather management, underoneagencywhileallnationalroadsafetymatters willbeundertheproposedRSA.Meanwhile,newconstitution proposed NMTA,inthecaseofNairobi,istoplaceallpublictransport issuessuchaslicensing,regulatingpublictransportandtraffic be supportedbyNUTRIP,theexistenceofthesenewinstitutionswillimprovegovernancestructureinurbantransport.Forinstance the sector. EventhoughtheINTPcanbeseenascontributingtoestablishmentofevenmoreentities,includingRSAandNMTA thatwill 13. highly congestedsituationinNairobiandothertownsthereforeacceptableflexibilityforadjustmentswillbemadeduringimplementation. respond tothesechangesastheyensue.Itshouldbeemphasizedthatinspiteofchallenges,urgentactionisneedednowgiven the implemented, therebyaffectingtheinstitutionalandimplementationarrangementsofNUTRIP.Modificationsmayberequiredsynchronously to 12. MetropolitanServicesImprovementProject(NaMSIP)willsupporttheimplementationoftheseefforts. establishing thelegalandregulatoryframeworkforrailways.BothproposedNationalUrbanTransportImprovementProject(NUTRIP) and Authority (RSA)andsupportfortheNationalRoadSafetyProgram;(b)settingupofNairobiMetropolitanTransport(NMTA); and(c) for discussionandendorsement,supportsreformationoftheurbantransportbyamongothers:(a)settingupNationalTransport andSafety 11. study estimatesthecostofsub-performanceintersectionsatKES.22.59billionannually(2006prices). infrastructure surroundingthecityiscriticallyparamount.The2006JapanInternationalCooperationAgency(JICA)-financedNairobi masterplan 10. current population. Nairobi, theroadnetworkwhichwasdesignedforlessthanonemillioninhabitantsisnowunabletohandlethreetimesmore perthe the country.Theresultismassivecongestion,soonexpectedtocauseacompletegridlockgivenanticipatedtrafficgrowth.For instance, in 12,549 kmoreightpercentofthetotalroadnetworkwhichsupports32populationandgeneration75 ofGDPin negligible publictransportservices.Theurbanroadnetwork,excludingthosesectionsofnationalhighwayswhichtraverseareas, isabout 9. transport infrastructureandservicesinKenya’smajortownsforovertwodecades. transport issuesincludingtheexistingcomplexandweakinstitutionaloversightregulatorycapacity,inadequateinvestmentsinurban corridor management,andinadequateoperationsmaintenancebudgets.Thishascontributedtotheattentionpaidurban now faceinstitutionalchallenges,insufficientstaffcapacity,andaninadequateframeworkfortransportpolicyplanning,lackof the supportofBank,inanefforttoimprovesectorperformance,urbantransporthaslaggedbehindothersubsectors.Urbanareas 8. FY2010. instance, transportsectorbudgetaryallocationasashareoftotalGovernmentexpenditureincreasedfrom9.5percentinFY2004to14 growth prospects,theGoKinitsRSIP2010–2024hasallocatedsignificantresourcestowardimprovementoftransportinfrastructure.For sector investmentplan(RSIP),amongmanyothers.Inrecognitionoftheimportanceprovisionqualityinfrastructuretosupporteconomic funds forroadmaintenancewithoutinterruptionandacrossallpartsofthecountry;(f)developmentadoptiona15-year enactment ofnewpolicies(e.g.developmentaroadspolicythatwasnotexisting);(e)theenhancemen Sectoral andInstitutionalContext Urban entitiesfaceinstitutionalweaknesses, insufficientstaffcapacity,inadequateframeworkfortransport policyandplanning,lackof The constitutiondoesnotspecifytherequisiteorganizationalstructures forgovernmentinstitutionsandagenciesthereislikelyto The newconstitutionandthedraftINTPprovidelongtermvisiononlikelygovernancestructureinurbantransportsub This currentsetupislikelytoevolveintheshortmediumtermasnewconstitutionandalsoagreedreformsare The yettobeadopteddraftIntegratedNationalTransportPolicy(INTP)whichhasbeenapprovedbyCabinetandsentParliament Decongestionofthemainartery(northerncorridor)thatpassesthroughmiddleNairobianddevelopmentnew Accordingly, thebasicurbannetwork,forinstance,isstillonedesignedin1970s.Therailwaynetworkskeletalandoffers Though GoKisimplementinganumberofreformsacrossthetransportsectorincludinginroads,aviation,railways,andmaritime,with Major policyandinstitutionalreformshavebeenimplemented,thoughnotasmuchwithrespecttotheurbantransportsubsector. Transport inKenyaasothercountriesperformstwokeyroles:(a)itconnectstotheworldeconomy;and(b)linkspeople Public Disclosure Copy Public Disclosure Copy costs. Forinstance, constructioncostsforBRTare estimatedatabout10%ofMetro constructioncostsand30-50percent oflightrail(tram) 24. and lostproductivityduetotimewasted intrafficjams. increase. Accordingly,theeconomic costofa“donothing”scenarioislikelytorunintobillionsshillings perannumintermsofopportunitycost traffic managementandservices, theaveragetripspeed(allmodes)willdeclineandalso roundtripjourneytimetoworkwill next 20years,withaveragetravel speedsandaccessibilitycontinuingtodecline.Withoutimmediate investmentinurbantransportinfrastructure, percent perannumduringthisperiod. Vehicleownershiprates,congestion,andemissionsareexpected tosignificantlyincreasethroughthe private cars,mostofthemusedin urbanareas.Publictransportvehiclessuchasbusesandmini registeredagrowthrateofaboutfive in 2009comparedto591,0002000onKenyanroads(averagegrowth rateofaboutninepercentperannum),which,over40are than onehourforcommuterslivingless10kmawaytoreach theCBDofNairobi.Motorizationisincreasingwithabout1.2millionvehicles 23. operation tobesupportedbytheBankandotherdevelopmentpartners. constitute aBRTsystem.Uponcompletion,thedesignedsystem wouldlaythegroundworkforafollowonproposedurbantransport preparatory workincludingfeasibilityanddetaileddesignsforselected BRTcorridors,coveringboththeengineeringandoperationalfeaturesthat potential BRTcorridorsbasedontraveldemandforecastsfor2030 consistentwithVision2030,theproposedNUTRIPwillfinance traffic flowstocreatededicatedinfrastructurefortheexclusiveuse bylargecapacitybuses(BRT).WhiletheMRTSidentifiedninecorridorsas day-long trafficcongestion.Itrecommendsencouragingashiftto large capacityvehiclesbypublictransportoperatorsandtoredesigntheurban 22. address partofthischallenge.Mosttheseactivitieswillbesupported underNUTRIP. annually fromroadcrashesonKenyanroads.Masstransitsystems,buildingcapacityandstreamlininginstitutionalarrangementscould help towns, andhighaccidentrateswithNairobirecordingover2,000fatalaccidentsannuallythelastfouryearsnearly3,500people dying inadequate financialresources;poorpublicroadtransportsystem,noiseandairpollution(greenhousegasemissions)fromvehicles inthemajor towns andcitiesinKenyawhichincludeworseningtrafficcongestionthemajorKenya;institutionalsegregation and urban transportintheNairobimetropolitanarea(2006)financedbyJICAhighlightsomeofmainrelatedchallengesfacing major 21. development. no coherenturbantransportstrategytosupportthedevelopmentofanefficientsystem.NUTRIPwilltherefore its implementation ofthe15-yearRSIPwhichincludesurbantransportinvestmentssuchasthoseproposedunderNUTRIP.However, thereis reducing laborproductivity,leadingtolossesinGDP,andcontributinganalreadydeterioratingairpollutioncondition.TheBanksupports the improvement ofpublictransportaccess,requiredtoaddressthehightrafficcongestionthatishavingseriouseconomicconsequences on commuter railandBRTsystemsprovidingsafedirectfacilitiesforNon-MotorizedTransport(NMT),focusingon,butnotlimited to, as improvingexistingroadcorridors;constructingcriticalcomplementarymissinglinks;developingmasstransitcorridorsincluding development ofmasstransitsystemsandaroadnetworkmasterplanforNairobi.Thesestudieshaverecommendedpriorityinterventions such and theassignmentwillbefundedunderBank-financedNCTIP.Inaddition,targetedstudieshavebeencarriedoutincluding complement theagreedinstitutionalandpolicyreforms.Theselectionofaconsultanttodevelop50-yeartransportmasterplanis advanced with clearpriorities,andtheproposed50yeartransportmasterplan(involvingallmodesofaspecific10-yearinvestment plan)to improve deliveryoftransportservicesinthecountry,longtimeinvestmentplans,havebeendevelopedsuchas15-year(2010-2024) RSIP 20. The processofselectingaconsultanttosupporttheimplementationthisdecisionhasbegunwithfinancingfromBank-financed KTSSP. establishment ofaclearregulatoryframeworktosupportanddeepenprivatesectorparticipationoverabovethecurrentrailway concession. Africa, NigeriaamongotherAfricancountries.TheGoKhasplanstoreformfurthertherailwaysubsector,particularlywithregard the on BRTroutesandfocusingmini-busesfeederroutes,learningfromtheexperienceofsimilareffortsinDar-es-salaam,; South component underNUTRIPwillincludeadequatemeasurestoinvolvethematatuownersinparticipatingthroughfranchisesrunlarger buses which callsforthecreationofNMTAandRSA,introductionhighcapacitybuses(phasing-outmatatus),amongothers.Theproposed BRTsub- 19. some oftheseissues. coordination. TheproposedNUTRIPandNairobiMetropolitanServicesImprovementProject(NaMSIP)financedbyWorldBankseektoaddress out rollingstock.Developmentofacomprehensiveandcoherenturbantransportsystemisthereforerequiredincludinggoodinter-agency service provisionexpectations(especiallypassengerservices),resultinginseriousinfrastructuremaintenancebacklogsandoverageworn- passenger traffic.However,therailsystemisrapidlydeterioratingduetoinadequatefunding,unclearmanagementstructuresandpoorlydefined 18. 400,00 BRT systemsare emergingallovertheworldincluding USA,LatinAmericaandEurope becauseoftheirrelativelylow implementation Poor townplanningservestoexacerbatetheurbantransportproblem. Forinstance,onanordinaryday,ittakesaverageofmore The draftINTPindicatesthat91.8percentofNairobi’sroadtransport arteriesoperateovertheirdesigncapacitiesresultinginfrequent The MassRapidTransitStudy(MRTS)fortheNairobimetropolitanregion(2011)financedbyAfDBandastudyonmasterplan for The urbanpublictransportservicescurrentlyoffereddonotcatertotheneedsofmajority,whostillwalktheirplaceswork.To TheMinistryofTransport(MoT)isbuildingsupportforNMTAthroughconsultations,suchthattheCabinethasapprovedINTP, Commuter railisprovidingsomemorningandeveningpeak-hourpassengerservicessince1992,carryingaboutonepercentof The ineffectiveinstitutionalstructuresandweaklegalregulatoryframeworkhaveimpactednegativelyonqualityreliability The roadtransportindustryinKenyaincludeslargecompaniesandindividualowner-operators;itiscompetitiveratesare Public Disclosure Copy Public Disclosure Copy established, thereby clarifyingtheinstitutionalarrangements intheroadsubsector; thereisnowpublicdissemination ofroadprogramsand 32. going KTSSPfinancedbytheBank. Governance andIntegrityImprovement ActionPlan(GAP),whichisbeingimplementedunderNCTIP, andwhereappropriateadoptedfortheon- and enhanceintegrity,theBank theGoK,withguidanceofDepartmentInstitutionalIntegrity (INT),agreedonaRoadsSector of bidrigging;fraudduringimplementation; andoverloadingofvehiclesthatdestroyedtheroadinfrastructure, amongothers.Tomitigatetherisks included complexinstitutionalarrangements; unclearresponsibilityandownershiparrangementsof theroadnetworks;collusionandotherforms 31. before designingaspecificroadconcession. meets internationallyacceptable(includingWorldBankGroup)due diligencerequirementsandalsosupporttheestablishmentofsaidSPC, a numberoftollroads.TheproposedNUTRIPwillsupportthiseffort, investigatefurtherandfacilitatetheselectionofsuchastrategicpartnerthat Special PurposeCompany(SPC)-setupforthispurpose,whichwould bemandatedtostructure,design,finance,buildandoperate(asaPPP) “concessionaire” onacompetitivebasistoactasstrategicpartner totheKenyaNationalHighwaysAuthority(KeNHA)andajointcompany- and asignificantamountoftimeeffortwouldbelost.Itistherefore suggestedthattheinitialeffortbespentfirstonselectingaqualified was notsigned.Ifthesameprocessisusedonnexttollroad to beconstructedusingsuchanapproach,theriskishighthatitcouldalsofail invite bidsfortheconcessionandanothernearlytwoyearstodo duediligenceonthesponsors,yetinend,concessionagreement roads onasingleprojectbybasis.Ittookthreeyearstoundertake theinitialpre-feasibilitystudies,afurtherfouryearstoprepareand 30. for theconstructionoftollingfacilities.Asaresult,GoKdecided toterminatetheprocessofconcessioning. among others,thedevelopmentofrealestateworthmillionsdollars,onsomeprivatelyownedlandearmarkedforacquisition bytheGoK intervening period(nineyears)atbothprojectandcountrylevelrenderingtheimplementationofuntenable.Thechanges included, political risks.However,theWorldBankGroupcouldnotsupportconsortiumafteritemergedthatsignificantchangeshadoccurred overthe sponsors hadrequestedtheWorldBankGroup,amongothers,forpartialfinancingofcapitalinvestmentandprovisionguarantees against studies conductedbyinternationallyrecruitedconsultants.Whilethreefirmswerepre-qualified,onlyoneconsortiumsubmittedabid. The and itwasnotuntil2007whenthebidswereinvited,underdefunctNUTRP.Thisfollowedoutcomerecommendationsof feasibility northern corridorroadpassingthroughNairobifortolling.TheBankfinancedtheadvisoryservicesunderNCTIP.processbegan in2003 29. contracts, publicservicecontractsandcompensatorymechanismsfortheprocurementofpassengerrollingstock. between theGoKandKRCforservicestobeprovided,directlyorviaconcessioncontracts,covering(multi-annual)infrastructuremaintenance a railwayreformstudythatwouldlaythegroundworkforcompetitive,efficientsystemanchoredintransparentcontractual relationship the righttochargeatrackaccessfee.ItisthereforerecommendedconsiderundercommuterservicescomponentTechnicalAssistance for granted toanewprivateserviceprovider,RVR,astheprovideroftrackmaintenance,setsmaintenanceprioritiesandwilllikelybe granted concessionaire RVRwhowillremainresponsiblefortherailfreightoperationsandinfrastructuremaintenance.Assumingaccessis being commuter servicesRVR,willfacepossibleconstraints,suchasfreighttrainpriorityintheallocationoftimetableslotsby principle ofopenaccesstoqualifiedoperators,andassuchanewcomerinthecommuterrailmarketotherthanexistingconcessionaire for directions fromvariousGoKagencies.TheKRCActworksagainstafurtherprivatizationofrailwayoperations.actuallawisnot basedonthe Corporations bytheGoKinfluencemanagementandoperationofKRCoccasionallycouldinhibitdecision-makingprocesses through Corporations ActandtheExchequerAuditAct.Therefore,guidelinesthatareissuedfromtimetoonoperationsof State 28. populated urbanareascrossedbythecorenetwork. transport standsat22,000passengers/day(onepercentofpublicdemand),despitethepotentialdemandforrailservicesin densely intermodal terminalsthatwouldfacilitaterapidandconvenientchangeoftransportmodes.Asaresult,railwaymodalshareinurban passenger passenger services.Ontopofthis,commutersstillspendalottimeinchangingfromonemodetransporttoanotherbecause alackof basis offurtherreformsintherailsubsectorrequiringputtingplacemodalitiesthatwillfacilitateequitableaccessforfreight and seemingly prioritygiventothepotentiallyprofitablefreightratherthanpassengerservices.Thisisoneofrisksbeaddressedand reliability andqualityofpassengeroperationsislimitedbytheconditioninfrastructurenetwork,lackadequaterollingstock, freight servicesthattakepriorityinrailaccessandlocomotivepowerallocationresultingcancellationofpassengerservices.Thus,the concessionaire’s (RVR)poolofageddiesellocomotivesthatarepoorlysuitedforthepurpose.Furthermore,thesesharedwith to operaterailcommuterservicesuntil2012.Mostpeoplea The GoKhasimplemented orisimplementingthe agreedGAPactions.Forinstance, newautonomousroadauthorities havebeen Governance inthetransportsector hasbeenchallenging,butsignificantimprovementshave made intherecentpast.Risks An importantlessonlearnedfromthe“failed”concessionisrisk involvedinstructuringPublicPrivatePartnerships(PPPs)fortoll In anefforttopromoteprivatesectorparticipationinfinancingandmanagementofroadinfrastructure,GoKofferedasectionthe KRC operationsaregovernedbytheActanditsalsosubjecttoprovisionsprovidedforinState Urban railcommuterpassengerservicesinNairobicityareofferedonthreerouteswithallthetrainsterminatingatcentralrailway The draftINTPsummarizestherailtransportinKenyaasmanifestingfollowingfeatures:(a)weakcorporategovernanceandlack Faced withthesenumerouschallenges,theGoKhasdecidedtoincorporatemasstransitsystemsmeasuresrecommendedbyvarious Public Disclosure Copy Public Disclosure Copy VI. V. IV. III. C: InstitutionalStrengtheningandCapacityBuildingintheUrbanTransportSector B: SupporttothedevelopmentofselectedMassTransitCorridors A: UpgradingUrbanRoadTransportInfrastructurealongtheNorthernCorridor Component Name financing andmanagementoftransportsystems. institutional capacityandarrangementsintheurbantransportsubsector;(c)promoteprivatesectorparticipationoperation, The ProjectDevelopmentObjectives(PDO)areto:(a)improvetheefficiencyofroadtransportalongnortherncorridor;(b) supervision consultants. subjected tomuchhigherlevelsofscrutiny;andusepost-qualificationforlargeworkscontracts;the“Engineer”willbe costs willberigorouslyinvestigatedandestimated;stringentduediligenceofbidders,consultantssuppliers;bidsqualifications with somepricesbelowtheEngineer’sestimates.Similarly,NUTRIP,whereappropriate,willadoptrelevantaspectsofGAP,inparticularunit the businessenvironment,increasingcompetitionandGoKobtainingcomparativelymorebidsthanbefore(fromtwotothreeovernine), 34. before, andbidsareinvitedwithoutpre-qualification. estimated morerigorously;andbidsunderbothgovernmentdonorfundedprojectsaresubjectedtomuchhigherlevelsofscrutinythan road constructionisimproving.Costestimationmanualshavebeendevelopedandlaunched;unitcostsareinvestigated such thatanewroadpolicywasenactedclarifiedtheinstitutionalarrangementsinsubsector.Lastly,in-depthanalysisofcost their performance,andexercisetherightstosanctionpoorperformanceorunethicalbehavior.TransparencyAccountabilityisalsoimproving engineering profession(EngineersBoardofKenya),withpowerstoregisterprofessionalsandfirms,assesstheirqualities,monitor performers andthosethataredebarred.Similarly,Parliamenthasapprovedthestrengtheningofregulatorybodyforconsultingpracticing industry (NationalConstructionAuthority)withpowerstoregistercontractors,monitoringtheirperformanceandpublishingnamesofpoor 33. out”, butadvertised;roadmaintenancemanualsdevelopedandinuse. for GoKfundedcontracts(consultantisthe“Engineer”);re-enforcementofprocurementregulations–arenolonger“given opportunities; contractawardsarepublished;internationalstandardpracticeformanagementoflargecontractsisgraduallybeingadopted,even KURA PITcould betransformedintothePublicTransport Departmentaspartofthe Authority. one agencyfacilitatesgoodcoordination inthepreparationofvariousBRT(sub-)components. Once theproposedNMTAisestablished, BRT componentswillbeprovided totheKURAPITthroughinternationallyrecruitedTA.Keepinginfrastructure andoperationscomponentsin was imperativetobuildcapacityin theimplementingagenciestomanagemajorprojects.Therefore, adequatecapacitybuildingonoperational instance, NCTIPwasafirstmajor transportprojectfinancedbytheBankaftera10-yearbreakinits lendingprogramtothetransportsectorandit 38. day coordinationoftheBRTactivities. to theDirectorGeneral,KURA.TheTeamLeaderforKURAPIT willbeattheGeneralManagerlevelandresponsibleforday-to- Matatu operatorstoresolveissuesofintra-ministerialnature.KURA willprovidesecretarialservicestothecommittee.TheBRTPITreport agencies andkeystakeholdersincludingbusoperators,CCN;Ministry ofLocalGovernment;MinistryNairobiMetropolitanDevelopment;and to theProjectSteeringCommitteeissuesofcross-sectoralnature. Thetechnicalcommitteewillhaverepresentativesfromalltheimplementing regulatory aspects.Therefore,aninter-ministerialBRTPITwillbe established tohandletechnicalissuesincludingdefining,resolvingorreferring facilitate inter-ministerialcoordinationontechnicalanddecision-making leveltocreateconsistencybetweenengineering,operationaland be completedconcurrentlywithbus-laneinfrastructure,theneedto establishastronginstitutionalstructureisimperative.Thisrequiredto 37. consulted priortoanychangesinPITmembership.dutiesand responsibilitiesareelaboratedinAnnex3. or tothePermanentSecretary(PS)ofMoT,asappropriate.Themembers ofallPITshavealreadybeenappointed,andtheWorldBankwillbe adequate experienceandqualifications.TheTeamLeaderwillreport directlytotheChiefExecutiveOfficer(CEO)ofKeNHA,KURAandKRC, activities ofitscomponentstheproject.EachPITwillbeheaded byaTeamLeaderandwillcomprisememberswiththeappropriateskills 36. their investmentprogram. experience onBankfundedoperations.Theprojectwillbemainstreamedintotheoperationsoftheseinstitutionsandformanintegral partof four otheragenciesarecurrentlyimplementingBank-financedprojects,thoughanumberoftheprojectstaffinKURAalsohaveworking 35. Implementation Total International DevelopmentAssociation(IDA) BORROWER/RECIPIENT For Loans/Credits/Others Financing Project Description Project DevelopmentObjectives The resultsofimplementingacombinationtheseGAPmeasuresintheroadsubsectorthereforeseemtocontributeimproving Theoversightfunctionsarebeingstrengthened.Parliamenthasapprovedtheestablishmentofaregulatorybodyforconstruction These implementationarrangements takeintoaccounttheexperiencelearntfromotherWorldBank financedprojectsinKenya.For However, fortheBRTsubcomponent,givenmulti-disciplinary nature ofthesystemwithamyriadtransportrelatedactivitiesto Each implementingagencywillappointaProjectImplementationTeam(PIT)whichbeempoweredtomanagetheday-to-day The projectexecutionwillbecarriedoutbyfiveimplementingagencies.KeNHA,KURA,KRC,MoTandMoR.Exceptforthe (in USDMillion) Amount 300.00 300.00 0.00 Public Disclosure Copy Public Disclosure Copy VIII. VII. (b) (a) 40. the implementationarrangementsaccordingly. These uncertaintiesarenotedandthereforepossiblerestructuringatorbeforetheMidTermReview(MTR)mayhavetobecarriedoutadjust changing rolesorhavingnewinstitutionsaltogethersuchastheproposedNMTAthatcouldbeinvolvedinimplementationofproject. reforms areimplemented.Modificationsmayberequiredtorespondthesechangesastheyarise.Thelikelyinvolvemergingor 39. Contact: Name: Email: Tel: Title: Contact: Name: Implementing Agencies Email: Tel: Title: Contact: Name: Borrower/Client/Recipient Email: Tel: Title: Contact: World Bank Contact point Safeguard Policies(includingpublicconsultation) key stakeholdersinitsPIT. 42. is relatedtoroadactivities. PC willbetheSecretarytoPOC(seeAnnex3).MoRhaveresponsibilityforcoordinationofproject,giventhatbulkproject comprise thePS,MoR;MoT;CEOsofKeNHA,KURA,KRC,arepresentativeMoFandPC.TheMoR,willchairPOC. particularly ofapolicynature.MoRwillberesponsiblefortheappointmentPCandprovideofficesecretariat.ThePOC the POC.ThePOCwillberesponsibleforsteering,oversightandstrategicguidancetoprojectimplementation,resolvebottlenecks responsible foroverallprojectreportingandcoordinationwillraiseanyissuesthatmayhampersmoothpreparationimplementationto 41. (e) (d) (c) Projects inDisputedAreasOP/BP7.60 Projects onInternationalWaterwaysOP/BP7.50 Safety ofDamsOP/BP4.37 Involuntary ResettlementOP/BP4.12 Indigenous PeoplesOP/BP4.10 Physical CulturalResourcesOP/BP4.11 Pest ManagementOP4.09 Forests OP/BP4.36 Natural HabitatsOP/BP4.04 Environmental AssessmentOP/BP4.01 Safeguard PoliciesTriggeredbytheProject Sub componentB1: Component A: AllthePITswillcompriseofregularstaffimplementingagenciesandprojectbeimplementedasfollows: These implementationarrangementsarelikelytochangeintheshortmediumtermasnewconstitutionandalsoagreed Sub componentC1involvesdiverseandcomplexissuesthatcutacrossseveralministries.Hence,KURAwillco-optothernon-state There willbeaProjectCoordinator(PC)andOversightCommittee(POC).ThePC,whoreporttothePS,MoR, Sub componentC2: Sub componentC1: Sub componentB2: Eng. JosephNkadayo Kenya UrbanRoads Authority [email protected] (254-20) 801-3842 Director General Eng. MeshackKidenda Kenya NationalHighwaysAuthority [email protected] 254202252299 Permanent Secretary Mr. JosephKinyua Ministry ofFinance [email protected] 5368+6452 Lead TransportSpecialist Josphat O.Sasia

MoR MoT KRC

KeNHA KURA

Yes ✖ ✖ ✖ No ✖ ✖ ✖ ✖ ✖ ✖ ✖ Public Disclosure Copy Public Disclosure Copy IX. Web: http://www.worldbank.org/infoshop Fax: (202)522-1500 Telephone: (202)458-4500 Washington, D.C.20433 1818 HStreet,NW The WorldBank The InfoShop Email: Tel: Title: Contact: Name: Email: Tel: Title: Contact: Name: Email: Tel: Title: Contact: Name: Email: Tel: Title: For moreinformationcontact: [email protected] 254202723155 Permanent Secretary Eng. MichaelKamau Ministry ofRoads [email protected] 254202217338 Managing Director Mr. NduvaMuli Kenya RailwaysCorporation [email protected] 254202729200 Permanent Secretary Dr. CyrusNjiru Ministry ofTransport [email protected] (254-20) 250-8033 Director General