Document of The World Bank Public Disclosure Authorized Report No: ICR00002771 IMPLEMENTATION COMPLETION AND RESULTS REPORT (IDA-39300 IDA-45710) ON AN IDA CREDIT (IDA-39300) IN THE AMOUNT OF SDR 138.44 MILLION Public Disclosure Authorized (US$207 MILLION EQUIVALENT) AND IDA CREDIT (IDA-45710) IN THE AMOUNT OF SDR 172.00 MILLION (US$253 MILLION EQUIVALENT) Public Disclosure Authorized TO THE REPUBLIC OF KENYA FOR THE NORTHERN CORRIDOR TRANSPORT IMPROVEMENT PROJECT June 29, 2016 Public Disclosure Authorized Transport and ICT Global Practice Africa Region CURRENCY EQUIVALENTS Currency Unit = Kenya Shilling (KSh) (Exchange Rate Effective) (February 29, 2004) (December 31, 2015) US$1.00 = KSh 77.0 US$1.00 = KSh 102.4 SDR 1.00 = US$1.4952 SDR 1.00 = US$ 1.3857 FISCAL YEAR July 1– June 30 ABBREVIATIONS AND ACRONYMS AF Additional Financing AFD French Development Agency (Agence Française de Développement) AfDB African Development Bank APRP Annual Public Road Programme CAS Country Assistance Strategy CAT1 Category 1 DCA Development Credit Agreement EASA East African School of Aviation EBK Engineering Board of Kenya EIB European Investment Bank EIRR Economic Internal Rate of Return ERB Engineers’ Registration Board ERSWE Economic Recovery Strategy for Wealth and Employment Creation EU European Union FAA United States Federal Aviation Administration FM Financial Management GNSS Global Navigation Satellite System GoK Government of Kenya GPS Global Positioning System IA Implementing Agency IASA International Aviation Safety Assessment ICAO International Civil Aviation Organization ICR Implementation Completion and Results Report ICT Information and Communications Technologies IDA International Development Association INT Department of Institutional Integrity IRI International Roughness Index ISR Implementation Status and Results Report JICA Japan International Cooperation Agency JKIA Jomo Kenyatta International Airport KAA Kenya Airports Authority KCAA Kenya Civil Aviation Authority KeNHA Kenya National Highways Authority KeRRA Kenya Rural Roads Authority KMA Kenya Maritime Authority KRA Kenya Revenue Authority KRB Kenya Roads Board KTSSP Kenya Transport Sector Support Project KURA Kenya Urban Roads Authority M&E Monitoring and Evaluation MoF Ministry of Finance MoTC Ministry of Transport and Communications MoTI Ministry of Transport and Infrastructure MoRPWH Ministry of Road, Public Works and Housing MTR Mid-Term Review NCA National Construction Authority NCTIP Northern Corridor Transport Improvement Project NCTTA Northern Corridor Transit and Transport Agreement NCTTCA Northern Corridor Transit and Transport Coordination Authority NDF Nordic Development Fund NGO Non-Governmental Organization NMT Non-Motorized Transport NPV Net Present Value NTSA National Transport and Safety Authority NUTRIP National Urban Transport Improvement Project OPRC Output- and Performance-based Road Contract PAD Project Appraisal Document PDO Project Development Objective POC Project Oversight Committee PPP Public-Private Partnership PTT Project Technical Team RAP Resettlement Action Plan RCCI Roadworks Construction Cost Index RSGIAP Road Sector Governance and Integrity Action Plan RSIP Road Sector Investment Program TOR Terms of Reference TSA Transport Security Administration of the United States TTL Task Team Leader UNES University of Nairobi Enterprises and Services Limited VAT Value Added Tax VCT Voluntary Consulting and Testing VPD Vehicles per Day Senior Global Practice Director: Pierre Guislain Acting Practice Manager: Aurelio Menendez Project Team Leader: Josphat O. Sasia ICR Team Leader: Akiko Kishiue Kenya Northern Corridor Transport Improvement Project CONTENTS Data Sheet A. Basic Information ............................................................................................................... i B. Key Dates ............................................................................................................................ i C. Ratings Summary ................................................................................................................ i D. Sector and Theme Codes ................................................................................................... ii E. Bank Staff ........................................................................................................................... ii F. Results Framework Analysis ............................................................................................. iii G. Ratings of Project Performance in ISRs ......................................................................... viii H. Restructuring ..................................................................................................................... ix I. Disbursement Graph ........................................................................................................... x 1. Project Context, Development Objectives and Design ............................................... 1 2. Key Factors Affecting Implementation and Outcomes ............................................... 6 3. Assessment of Outcomes .......................................................................................... 14 4. Assessment of Risk to Development Outcome ......................................................... 21 5. Assessment of Bank and Borrower Performance ...................................................... 22 6. Lessons Learned ........................................................................................................ 24 7. Comments on Issues Raised by Borrower/Implementing Agencies/Partners ........... 26 Annex 1. Project Costs and Financing .......................................................................... 27 Annex 2. Outputs by Component .................................................................................. 28 Annex 3. Economic and Financial Analysis ................................................................. 46 Annex 4. Bank Lending and Implementation Support/Supervision Processes ............. 52 Annex 5. Beneficiary Survey Results ........................................................................... 54 Annex 6. Stakeholder Workshop Report and Results ................................................... 55 Annex 7. Summary of Borrower’s ICR and Comments on Draft ICR .......................... 56 Annex 8. Comments of Co-Financiers and Other Partners/Stakeholders ..................... 68 Annex 9. List of Supporting Documents ....................................................................... 69 Annex 10. Road Sector Governance and Integrity Improvement Action Plan………..71 MAP .............................................................................................................................. 77 DATA Sheet A. Basic Information Northern Corridor Country: Kenya Project Name: Transport Improvement Project Project ID: P082615 L/C/TF Number(s): IDA-39300,IDA-45710 ICR Date: 06/27/2016 ICR Type: Core ICR GOVERNMENT OF Lending Instrument: SIL Borrower: KENYA Original Total XDR 138.44M Disbursed Amount: XDR 310.21M Commitment: Revised Amount: XDR 310.44M Environmental Category: B Implementing Agencies: Kenya Civil Aviation Authority Kenya Airports Authority Ministry of Transport and Infrastructure1 Kenya National Highways Authority Cofinanciers and Other External Partners: Nordic Development Fund Agence Francaise pour le Developpement (AFD) B. Key Dates Revised / Actual Process Date Process Original Date Date(s) Concept Review: 06/30/2003 Effectiveness: 09/16/2004 09/16/2004 12/14/2005 Appraisal: 02/09/2004 Restructuring(s): 04/02/2009 12/27/2012 Approval: 06/17/2004 Mid-term Review: 05/04/2009 Closing: 12/31/2009 12/31/2015 C. Ratings Summary C.1 Performance Rating by ICR Outcomes: Satisfactory Risk to Development Outcome: Low or Negligible Bank Performance: Moderately Satisfactory Borrower Performance: Moderately Satisfactory 1 Ministry of Roads, Public Works and Housing and Ministry of Transport and Communications merged and became Ministry of Transport and Infrastructure. MOTI has State Department of Transport and State Department of Infrastructure. i C.2 Detailed Ratings of Bank and Borrower Performance (by ICR) Bank Ratings Borrower Ratings Quality at Entry: Moderately Satisfactory Government: Moderately Satisfactory Implementing Quality of Supervision: Moderately Satisfactory Moderately Satisfactory Agency/Agencies: Overall Bank Overall Borrower Moderately Satisfactory Moderately Satisfactory Performance: Performance: C.3 Quality at Entry and Implementation Performance Indicators Implementation QAG Assessments (if Indicators Rating Performance any) Potential Problem Project Quality at Entry Yes None at any time (Yes/No): (QEA): Problem Project at any Quality of Yes None time (Yes/No): Supervision (QSA): DO rating before Moderately Closing/Inactive status: Satisfactory D. Sector and Theme Codes Original Actual Sector Code (as % of total Bank financing) Aviation 15 9 Central government administration 10 7 Health 1 1 Other social services 2 2 Rural and Inter-Urban Roads and Highways 72 81 Theme Code (as % of total Bank financing) Administrative and civil service reform 13 13 Infrastructure services for private sector development 25 25 Regional integration 13 13 Regulation and competition policy 24 24 Trade facilitation and market access 25 25 E. Bank Staff Positions At ICR At Approval Vice President: Makhtar Diop Callisto E. Madavo Country Director: Diarietou Gaye Makhtar Diop Practice Aurelio Menendez C. Sanjivi Rajasingham