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Kenya 1St Mover PPP Road Projects

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Kenya 1St Mover PPP Road Projects MINISTRY OF TRANSPORT, INFRASTRUCTURE, HOUSING AND URBAN DEVELOPMENT STATE DEPARTMENT OF INFRASTRUCTURE Kenya 1st Mover PPP Road Projects 14TH March, 2017 Eng. Peter M. Mundinia Director General, Kenya National Highways Authority (KeNHA) 1 CONTENTS . Nairobi Southern Bypass . Mombasa – Nairobi . Nairobi – Thika Highway . Rironi – Naivasha – Nakuru . Nyali Bridge 2 Nairobi Southern O&M PPP Project • Construction commenced early 2012 and is expected to be completed by May 2016. • 28.6km of dual carriageway with 12 km of slip roads and 8.5 km Service Roads • Design speed of 100 km/hr. • Pavement Design: loading of 40 M CESA 3 Toll Plaza Location Toll Plaza Location Just to the West of Ngong Road Intersection Proposed: Toll Plaza Location South of Langata Road I/C 4 Toll Plaza Layout 5 Nairobi Southern Bypass Investments include: Toll plaza to the west of Ngong Road; Provision of containment barriers on both sides of the central reserve; Local improvements to the interchange slip roads; Improvements to the Nairobi National Park and Ngong Forest perimeter fencing; Weighbridges CAPEX - 4 WIMs 6 Widening of Ngong Road • Full on-line dualling of Ngong Road from the Dagoretti Corner (Junction Mall) to the Ngong Road Interchange over a total distance of 3.28km with service roads on both sides. • Upgrading of the Dagoretti Corner junction by provision of a viaduct for through traffic city bound on Ngong Road 7 Possible Additional CAPEX ADDITIONAL CAPEX (M KSH) Widening of Ngong Road 3,595.0 Interchange at Gitaru/A8 upgrade works - local Improvements 73.5 Electronic free flow toll gantries for closed system 805.0 Additional Footbridges – 8 No (CAPEX under Review) 1,864.8 Improvements to drainage and other environmental improvements 100.0 Additional fencing Around Ngong Forest 137.3 Total 6,575.6 8 Mombasa – Nairobi Road (A8) A8 is the key arterial road in Kenya Carries ~95% of all freight movement through Mombasa Port • High transportation cost • Three times higher cost compared to developed countries • Transport cost of 45% of cost of goods vis-à-vis 15% in developed countries* • Inadequate Level of Service • Long travel times/Lower travel speed • Increasing Congestion • Negligible road-side facilities/amenities A8 - Design Features . The whole road is constructed to . Grade Separated Intersections bituminous standards • Railway Over/Under passes . Constructed to Highway type I standards – mobility function • Road Overpasses . Cross Sections . Design and Operating Speeds • Road width varies between 7.0m and • Design speed =100 kmph 14.0m excluding shoulders and central Outside town - ~100 kmph possible, median • but passing opportunities limited • With exception of newly reconstructed Inside town - ~20 kmph design sections, most shoulders are 1.5m • incorporates speed humps wide . Existing road alignment incorporates approximately 29 bridges and numerous box and concrete pipe culverts Current traffic 73,503 City Traffic NairobiNairobi –– unbanurban 64,950 traffictraffic Through Highway City Traffic traffic 23,236 23,008 16,917 19,812 20,263 13,816 8,200 7,625 7,078 7,305 8,552 5,508 4,675 4,226 4,285 3,423 3,102 2,692 2,950 2,852 3,020 2,746 GPO - JKIA – Athi River Machakos Sultan Mtito Bachuma Mariaka JKIA Athi - T/off – Hamud - Andei – Gate- Maji ni- River Machakos Sultan Mitto Bachuma ya Chumvi Mombas T/off Hamud Andei Gate - a In Vehicles /Day LV HV Mariakani Nairobi – Nakuru (A8) 174 km Single Carriageway Fair to Good Road Conditions Rolling to Hilly terrain Urbanized region Part of Northern Corridor 12 Speed (Kmph) 100 120 Current Transport Challenges Transport Current 20 40 60 80 0 -12 -6 Rironi 0 6 12 18 24 30 36 42 48 54 Naivasha 60 66 72 78 84 90 96 102 Speed Average 108 Gilgil 114 120 126 132 138 144 150 156 162 Nakuru 168 174 • • • • • maintenance and upgradation for resources Limited world the in roads dangerous Most 22 top the of one Safety: Poor km/ Speed: ~ 60 Low 1 > V/C sections few For levels. saturation reaching Capacity Road Service: LOS of Level Low hr - D/E 13 Lanes ADT To Eldoret Traffic Mau Summit HS IV 10,889 Levels LoS D A104 Njoro Rd. Jn. HS III 41,669 Nakuru Town LoS C HS II 14,779 LoS D A104 Naivasha A8 C88 HS I South 17,160 8,327 B3 A104 LoS E LoS E B3 Rironi HS 0 LoS B 21,984 Gitaru To Nairobi 14 Traffic To Eldoret composition Mau Summit A104 Njoro Rd. Jn. Nakuru Town A104 Naivasha C88 B3 A104 B3 Rironi Gitaru To Nairobi 15 Cost Estimate 5 117 14 112 CAPEX (In KSh Billion) 30 4 65 Initial CAPEX Augmentation Augmentation Augmentation Total A104 B3/C88 Grand Total 2030 2035 2040 Budget KenHA Average Operating Expenditures: 1.8 KSh billion p.a. 2015 – 2016 60 KSHb 16 Upgrading Northern Corridor still competitive Cost of Freight Transport Mombasa – Kampala vs DSM - Kampala in US$/km 2.71 0.24 2.39 2.15 Current Costs Northern Additional cost from Total Costs Northern Current Costs Central Corridor tolling Corridor Corridor Not even taking into account the benefits from road improvement which will reduce the current costs of the Northern Corridor 17 RIRONI- NAIVASHA: To Eldoret Mau Summit Operation and maintenance of Gitaru to Rironi section (12.431 Km) A104 Njoro Rd. Jn. Development, operation and maintenance of existing A8 from Rironi to Mau summit (174.94 Nakuru Town Km) Elevated Corridor in Nakuru Town Strengthening, operation and maintenance of A8 A104 South from Rironi to Naivasha (57.18 Km) Naivasha C88 3 toll Charging points on existing A104 at Km B3 A104 39.500(Kinungi), Km 75.200 (Gilgil) and Km 141.500(Sobeo) and 1 toll charging point on A8 B3 Rironi South at Km 1.200 (Rironi). Gitaru To Nairobi 18 Nairobi – Thika Superhighway Nairobi – Thika Super Highway (50.4 km) Nairobi County (26.78 km Kiambu County (23.62km) Cost of development - KES 33 Billion Super Highway opened for traffic in November 2012 O&M being done by PBC contractor @ 1.1 Billion for 2 years Scheduled to end in April 2016; Possible extension initiated for 6 months under the provisions of PBC Contract 19 Nairobi – Thika Super Highway 20 Traffic Analysis and Demand Forecast Traffic Composition 0.49% 0.17% 0.20% 0.07% 5.49% 7.23% 15.67% 67.34% 3.35% Car/Taxi/Auto 2-W/Boda boda Matatu/Mini Bus Medium and Large Bus LGV 2 Axle 3 Axle MAV 21 Traffic Analysis and Demand Forecast 22 SUMMARY: IFPPP ROADS – VIABILITY INDICATORS No Project CAPEX Project Project KShs bill) NPV EIRR % (KShs bill) 1 Mombasa - Nairobi 190 332.0 24.1% 2 Nairobi Southern 7.80 38.2 27.8% Bypass 3 Nairobi – Thika Road 4.03 35.0 29.2% 4 Rironi – Naivasha - 117 228 20.1% Nakuru 23 IMPLEMENTATION TIMELINES May 2017 November 2017 October Financial 2017 Closure April 2017 Signing of CA March Selection of 2017 Preferred Bidder Issuance of RFP November documents 2016 RFQ Evaluation Site and short-listing Acquisition of pre-qualified Publication of RFQ bidders Guarantees Notice in place Investor Conference Note: Timelines subject publication of RFQ and approvals, etc. 24 Thank You .
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