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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, National Highways Authority (KeNHA)

1 CONTENTS

. Southern Bypass . – Nairobi . Nairobi – . Rironi – . 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 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

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 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 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 – 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  Fair to Good Road Conditions  Rolling to Hilly terrain  Urbanized region  Part of Northern Corridor

12 Current Transport Challenges 120 • Low Level of Service: LOS-D/E

100 • Road Capacity Average Speed reaching saturation 80 levels. For few sections V/C > 1

60 • Low Speed: ~ 60 km/hr 40 Speed (Kmph) • Poor Safety: one of 20 the top 22 Most dangerous roads in the world 0 0 6 -6 12 18 24 30 36 42 48 54 60 66 72 78 84 90 96 -12 102 108 114 120 126 132 138 144 150 156 162 168 174 • Limited resources for upgradation and

Gilgil maintenance Nakuru Rironi Naivasha

13 ADT To Traffic 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 () 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)  (26.78 km  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 – 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