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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: 60005-KE PROJECT APPRAISAL DOCUMENT ON A PROPOSED CREDIT IN THE AMOUNT OF Public Disclosure Authorized SDR 190.80 MILLION (US$300 MILLION EQUIVALENT) TO THE REPUBLIC OF KENYA FOR THE TRANSPORT SECTOR SUPPORT PROJECT Public Disclosure Authorized March 29, 2011 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 Bank authorization. Public Disclosure Authorized CURRENCY EQUIVALENTS (Exchange Rate Effective March 2011) Currency Unit = Kenya Shilling (KES) KES 80.95 = US$1.0 US$ 1.0 = SDR 0.6357 FISCAL YEAR July 1 – June 30 ABBREVIATIONS AND ACRONYMS AFD Agence Française de Developpement (French Development Agency) AGI Actionable Governance Indicator CASOA Civil Aviation Safety Oversight Agency CEO Chief Executive Officer CM Centimeter COMESA Common Market for Eastern and Southern Africa CSO Civil Society Organization CPS Country Partnership Strategy CRC Constituency Roads Committee DIR Detailed Implementation Review EA Environmental Assessment EAC East African Community EATTFP East Africa Trade and Transport Facilitation Project EIA Environmental Impact Assessment EIB European Investment Bank EMP Environmental Management Plan ERB Engineers’ Registration Board ERD External Resources Department ERR Economic Rate of Return EU European Union FAA Federal Aviation Administration FM Financial Management GAP Governance Action Plan GDP Gross Domestic Product GoK Government of Kenya GPN General Procurement Notice HDM-4 Highway Design Management Model Version Four HIV/AIDS Human Immunodeficiency Virus/Acquired Immune Deficiency Syndrome IA Implementing Agency IASA International Aviation Safety Assessment IBRD International Bank of Reconstruction and Development ICAO International Civil Aviation Organization ICB International Competitive Bidding ICT Information and Communications Technology IDA International Development Association IFMIS Integrated Financial Management and Information System IMO International Maritime Organization INT Department of Institutional Integrity IRI International Roughness Index JICA Japan International Cooperation Agency JKIA Jomo Kenyatta International Airport KAA Kenya Airports Authority KCAA Kenya Civil Aviation Authority KENAO Kenya National Audit Office KeNHA Kenya National Highways Authority KeRRA Kenya Rural Roads Authority KfW Kreditanstalt Fur Wiederaufbau KIHBT Kenya Institute of Highways and Buildings Technology KM Kilometer KMA Kenya Maritime Authority KR Kenya Railways KRA Kenya Revenue Authority KRB Kenya Roads Board KTSSP Kenya Transport Sector Support Project KURA Kenya Urban Roads Authority LIB Limited International Bidding LVSR Low Volume Sealed Road M&E Monitoring and Evaluation MIA Moi International Airport MoF Ministry of Finance MoR Ministry of Roads MoT Ministry of Transport NCA National Construction Authority NCB National Competitive Bidding NCTIP Northern Corridor Transport Improvement Project NMT Non Motorized Transport NPV Net Present Value 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 and Disposal Act PPIAF Public Private Infrastructure Advisory Facility PPOA Public Procurement Oversight Authority PPP Public-Private Partnership PS Permanent Secretary QCBS Quality and Cost Based Selection RACECA Roads and Civil Engineering Contractors Association RAP Resettlement Action Plan RFP Request for Proposal RMLF Road Maintenance Levy Fund RPF Resettlement Policy Framework RSIP Road Sector Investment Program RVR Rift Valley Railways SIL Specific Investment Loan SPN Specific Procurement Notice TA Technical Assistance TEU Twenty-Foot Equivalent Units ToR Terms of Reference TSA Transport Security Administration UoN University of Nairobi US United States US$ United States Dollar VAT Value Added Tax VPD Vehicle Per Day Regional Vice President: Obiageli Katryn Ezekwesili Country Director: Johannes Zutt Sector Director: Jamal Saghir Sector Manager: Supee Teravaninthorn Task Team Leader: Josphat O. Sasia KENYA TRANSPORT SECTOR SUPPORT PROJECT CONTENTS I. STRATEGIC CONTEXT ............................................................................................. 1 A. Country Context ............................................................................................................... 1 B. Sectoral and Institutional Context .................................................................................... 1 C. Rationale for Bank Involvement .................................................................................... 10 D. Higher-Level Objectives to which the Project Contributes ........................................... 11 II. PROJECT DEVELOPMENT OBJECTIVES............................................................. 11 A. Project Development Objectives (PDO) ........................................................................ 11 1. Project Beneficiaries ...................................................................................................... 12 2. PDO Level Results Indicators ........................................................................................ 12 III. PROJECT DESCRIPTION ......................................................................................... 12 A. Project Components ....................................................................................................... 13 B. Project Financing ............................................................................................................ 15 1. Lending Instrument ........................................................................................................ 16 2. Project Financing Table ................................................................................................. 16 C. Lessons Learned and Reflected in the Project Design ................................................... 16 IV. IMPLEMENTATION ................................................................................................. 17 A. Institutional and Implementation Arrangements ............................................................ 17 B. Results Monitoring and Evaluation ................................................................................ 18 C. Sustainability .................................................................................................................. 19 V. KEY RISKS ................................................................................................................ 19 VI. APPRAISAL SUMMARY ......................................................................................... 20 A. Economic and Financial Analysis .................................................................................. 20 B. Technical ........................................................................................................................ 21 C. Financial Management ................................................................................................... 21 D. Procurement ................................................................................................................... 23 E. Social (including safeguards) ......................................................................................... 24 F. Environment (including safeguards) .............................................................................. 25 Annex 1: Results Framework and Monitoring ............................................................................. 26 Annex 2: Detailed Project Description ........................................................................................ 30 Annex 3: Implementation Arrangements ..................................................................................... 44 Annex 4: Operational Risk Assessment Framework (ORAF) ..................................................... 73 Annex 5: Implementation Support Plan ....................................................................................... 76 Annex 6: Team Composition ....................................................................................................... 79 Annex 7: Economic and Financial Analysis ................................................................................. 80 Annex 8: Status of Implementation of the Road Sector Governance and Integrity Action Plan under NCTIP ................................................................................................................ 91 Annex 9: Roads Sub Sector Investment Plan .............................................................................. 98 Annex 10: Kenya Map No. IBRD 38484................................................................................... 102 PAD DATA SHEET KENYA KENYA TRANSPORT SECTOR SUPPORT PROJECT PROJECT APPRAISAL DOCUMENT AFRICA TRANSPORT SECTOR Date: March 29, 2011 Sector(s): Roads (78%); Transport Policy and Country Director: Johannes Zutt Institutional Building (7%); Aviation (15%) Sector Director: Jamal Saghir Sector Manager: Supee Teravaninthorn Theme(s): Infrastructure Services for Private Sector Team Leader(s): Josphat O. Sasia Development (93%); Institutional and Policy Project ID: P124109 Reform for Service Delivery (7%) Lending Instrument:
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