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The World Bank for OFFICIAL USE ONLY Document of The World Bank FOR OFFICIAL USE ONLY Public Disclosure Authorized Report No: 67350-KE PROJECT APPRAISAL DOCUMENT ON A PROPOSED CREDIT Public Disclosure Authorized IN THE AMOUNT OF SDR 193.5 MILLION (US$300 MILLION EQUIVALENT) TO THE REPUBLIC OF KENYA FOR A NATIONAL URBAN TRANSPORT IMPROVEMENT PROJECT Public Disclosure Authorized July 9, 2012 Transport Sector Country Department AFCE2 Africa Region This document has a restricted distribution and may be used by recipients only in the performance of their official duties. Its contents may not otherwise be disclosed without World Public Disclosure Authorized Bank authorization. CURRENCY EQUIVALENTS (Exchange Rate Effective April 30, 2012) Currency Unit = Kenya Shillings (KES) KES 85.15 = US$1 US$ 1.5506 = SDR 1 FISCAL YEAR July 1 – June 30 ABBREVIATIONS AND ACRONYMS AADT Average Annual Daily Traffic ADT Annual Daily Traffic AFD Agence Française de Developpement (French Development Agency) AfDB African Development Bank BRT Bus Rapid Transit CBD Central Business District CCN City Council of Nairobi CEO Chief Executive Officer CO Country Office CPS Country Partnership Strategy DG Director General EASA East African School of Aviation EATTFP East Africa Trade and Transport Facilitation Project EIA Environmental Impact Assessment EIRR Economic Internal Rate of Return ERR Economic Rate of Return ESIA Environmental and Social Impact Assessment ESMP Environmental and Social Management Plan EU European Union GAP Governance Integrity Improvement Action Plan GDP Gross Domestic Product GHG Green House Gas GoK Government of Kenya GPN General Procurement Notice HDM-4 Highway Development and Management Model HIV Human Immunodeficiency Virus/Acquired Immune Deficiency /AIDS Syndrome IA Implementing Agency IBRD International Bank for Reconstruction and Development ICB International Competitive Bidding ICT Information Communication Technology IDA International Development Association IFMIS Integrated Financial Management Information System IFR Interim Financial Report INT Department of Institutional Integrity INTP Integrated National Transport Policy IT Information Technology JICA Japan International Cooperation Agency JKIA Jomo Kenyatta International Airport KACC Kenya Anti Corruption Commission KCAA Kenya Civil Aviation Authority KENAO Kenya National Audit Office KeNHA Kenya National Highways Authority KeRRA Kenya Rural Roads Authority KES Kenya Shillings KM Kilometer KRC Kenya Railways Corporation KTSSP Kenya Transport Sector Support Project KURA Kenya Urban Roads Authority LIB Limited International Bidding LRT Light Rail Transit M&E Monitoring and Evaluation MD Managing Director MoF Ministry of Finance MoR Ministry of Roads MoT Ministry of Transport MRT Mass Rapid Transit MRTS Mass Rapid Transit Study MTR Mid Term Review NAMSIP Nairobi Metropolitan Services Improvement Project NCB National Competitive Bidding NCTIP Northern Corridor Transport Improvement Project NMT Non Motorized Transport NMTA Nairobi Metropolitan Transport Authority NPV Net Present Value NUTRIP National Urban Transport Improvement Project NUTRP Nairobi Urban Toll Road Project ORAF Operational Risk Assessment Framework PAD Project Appraisal Document PAP Project Affected Persons PC Project Coordinator PDO Project Development Objective PIT Project Implementation Team POC Project Oversight Committee PPDA Public Procurement Disposal Act PPOA Public Procurement and Oversight Authority PPP Public-Private Partnership PS Permanent Secretary QCBS Quality and Cost Based Selection RAP Resettlement Action Plan RTSA National Road Transport and Safety Authority RSIP Road Sector Investment Plan RVR Rift Valley Railways SBD Standard Bidding Documents SOE Statement of Expenses SIL Specific Investment Loan STC Short-Term Consultant SPN Specific Procurement Notice TA Technical Assistance ToR Terms of Reference UoN University of Nairobi US$ United States Dollar VPD Vehicles per day Regional Vice President: Makhtar Diop Country Director: Johannes Zutt Sector Director: Jamal Saghir Sector Manager: Supee Teravaninthorn Task Team Leader: Josphat O. Sasia REPUBLIC OF KENYA National Urban Transport Improvement Project TABLE OF CONTENTS Page I. STRATEGIC CONTEXT .................................................................................................1 A. Country Context ............................................................................................................ 1 B. Sectoral and Institutional Context ................................................................................. 2 C. Higher Level Objectives to which the Project Contributes ........................................ 13 II. PROJECT DEVELOPMENT OBJECTIVES ..............................................................14 A. Project Development Objectives................................................................................. 14 B. Project Beneficiaries ................................................................................................... 14 C. PDO Level Results Indicators ..................................................................................... 15 III. PROJECT DESCRIPTION ............................................................................................15 A. Project Components .................................................................................................... 15 B. Project Financing ........................................................................................................ 18 C. Lessons Learned and Reflected in the Project Design ................................................ 19 IV. IMPLEMENTATION .....................................................................................................20 A. Institutional and Implementation Arrangements ........................................................ 20 B. Results Monitoring and Evaluation ............................................................................ 22 C. Sustainability............................................................................................................... 23 V. KEY RISKS AND MITIGATION MEASURES ..........................................................23 A. Risk Ratings Summary Table ..................................................................................... 23 B. Overall Risk Rating Explanation ................................................................................ 23 VI. APPRAISAL SUMMARY ..............................................................................................24 A. Economic and Financial Analyses .............................................................................. 24 B. Technical ..................................................................................................................... 24 C. Financial Management ................................................................................................ 24 D. Procurement ................................................................................................................ 25 E. Social (including safeguards) ...................................................................................... 26 F. Environment (including safeguards) ........................................................................... 27 Annex 1: Results Framework and Monitoring .........................................................................31 Annex 2: Detailed Project Description .......................................................................................33 Annex 3: Implementation Arrangements ..................................................................................51 Annex 4: Operational Risk Assessment Framework (ORAF) .................................................79 Annex 5: Implementation Support Plan ....................................................................................83 Annex 6: Economic and Financial Analysis ..............................................................................86 Annex 7: Environmental and Social Safeguards ......................................................................96 Annex 8: Map .............................................................................................................................113 PAD DATA SHEET REPUBLIC OF KENYA NATIONAL URBAN TRANSPORT IMPROVEMENT PROJECT (P126321) PROJECT APPRAISAL DOCUMENT . AFRICA AFTTR . Basic Information Date: July 9, 2012 Sectors: Urban Roads and Highways (85%), Railways (5%), General transportation sector (10%) Country Director: Johannes Zutt Themes: Infrastructure services for private sector development Sector Supee Teravaninthorn/ (20%), other urban development (10%), city-wide Manager/Director: Jamal Saghir infrastructure and service delivery (70%) Project ID: P126321 EA Category: B - Partial Assessment Lending Instrument: Specific Investment Loan Team Leader(s): Josphat O. Sasia Joint IFC: No Borrower: Republic of Kenya Ministry of Finance The Treasury P. O. Box 30007-00100 Nairobi, Kenya Tel: (254-20) 2252299 Fax: (254-20) 2240045 Responsible Agency: Kenya National Highways Authority (KeNHA) Contact: Eng. Meshack Kidenda Title: Director General Telephone No.: 254208013842 Email: [email protected] Responsible Agency: Kenya Urban Roads Authority (KURA) Contact: Eng. Joseph N. Nkadayo Title: Director General Telephone No.: 254202508033 Email: [email protected] Responsible Agency: Kenya Railways Corporation (KRC) Contact: Mr. Nduva Muli Title: Managing Director Telephone No.: 254202210111 Email: [email protected] Responsible Agency: Ministry of Roads
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