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Document of
The World Bank
FOR OFFICIAL USE ONLY
Report No: 67350-KE
PROJECT APPRAISAL DOCUMENT
ON A
PROPOSED CREDIT
IN THE AMOUNT OF SDR 193.5 MILLION
(US$300 MILLION EQUIVALENT)
TO THE
REPUBLIC OF KENYA
FOR A
NATIONAL URBAN TRANSPORT IMPROVEMENT PROJECT
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
Bank authorization.
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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
BRT
African Development Bank
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
/AIDS
Human Immunodeficiency Virus/Acquired Immune Deficiency
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
LRT
Limited International Bidding
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
i
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
(20%), other urban development (10%), city-wide
infrastructure and service delivery (70%) Sector
Manager/Director:
Supee Teravaninthorn/
Jamal Saghir
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 (MoR)
Contact: Eng. Michael S. M. Kamau Title: Permanent Secretary
Telephone No.: 254202723155 Email: [email protected]
ii
Responsible Agency: Ministry of Transport (MoT)
Contact: Dr. Cyrus Njiru Title: Permanent Secretary
Telephone No.: 254202729800 Email: [email protected]
Project Implementation
Period:
Start Date: August 3, 2012 End Date: December 31, 2018
Expected Effectiveness
Date: December 3, 2012
Expected Closing Date: December 31, 2018
Project Financing Data(US$M)
[ ] Loan [ ] Grant Term:
Standard IDA terms, with a maturity of 40 years, including a grace period
of 10 years [X] Credit [ ] Guarantee
For Loans/Credits/Others
Total Project Cost (US$M): 413.11
Total Bank Financing (US$M): 300.00
Financing Source Amount(US$M)
BORROWER/RECIPIENT 113.11
International Development Association (IDA) 300.00
Total 413.11
Expected Disbursements (in USD Million)
Fiscal Year 2013 2014 2015 2016 2017 2018
Annual 7.00 30.00 60.00 70.00 75.00 58.00 0.00 0.00 0.00
Cumulative 7.00 37.00 97.00 167.00 242.00 300.00 0.00 0.00 0.00
Project Development Objective(s)
The Project Development Objectives (PDO) are to: (a) improve the efficiency of road transport along the Northern
Corridor; (b) improve the institutional capacity and arrangements in the urban transport sub-sector; and (c) promote the
private sector participation in the operation, financing and management of transport systems.
Components
Component Name Cost (USD Millions)
A. Support to Kenya National Highways Authority (KeNHA) to Upgrade
the Urban Road Transport Infrastructure.
223.26
B. Support to Kenya Urban Roads Authority (KURA) and Kenya Railways
Corporation (KRC) to Develop Selected Mass Transit Corridors.
59.70
iii
C. Institutional Strengthening and Capacity Building. 17.04
Compliance
Policy
Does the project depart from the CPS in content or in other significant respects? Yes [ ] No [ X ]
Does the project require any waivers of Bank policies? Yes [ ] No [ X ]
Have these been approved by Bank management? Yes [ ] No [ ]
Is approval for any policy waiver sought from the Board? Yes [ ] No [ X ]
Does the project meet the Regional criteria for readiness for implementation? Yes [ X ] No [ ]
Safeguard Policies Triggered by the Project Yes No
Environmental Assessment OP/BP 4.01 X
Natural Habitats OP/BP 4.04 X
Forests OP/BP 4.36 X
Pest Management OP 4.09 X
Physical Cultural Resources OP/BP 4.11 X
Indigenous Peoples OP/BP 4.10 X
Involuntary Resettlement OP/BP 4.12 X
Safety of Dams OP/BP 4.37 X
Projects on International Waterways OP/BP 7.50 X
Projects in Disputed Areas OP/BP 7.60 X .
Legal Covenants
Name Recurrent Due Date Frequency
Subsidiary Agreement
Financing Agreement Reference Article IV 4.01 (a)
Effectiveness
Description of Covenant
A Subsidiary Agreement has been executed on behalf of the Recipient and each of the Project Implementing Entities.
Name Recurrent Due Date Frequency
Counterpart Funds Account
Financing Agreement Reference Article IV 4.01(b); and
Schedule 2 Section I G (2)
Effectiveness
Description of Covenant
The Recipient has opened and deposited into the Project Counterpart Funds Account: (a) an initial amount equivalent to
KES 30,000,000; and (b) thereafter, prior to the commencement of each calendar quarter, the amount of counterpart
funding agreed with the Association to be provided for such quarter pursuant to the quarterly interim unaudited financial
report for the Project provided by the Recipient for the preceding quarter.
iv
Name Recurrent Due Date Frequency
Project Implementation Manual
Financing Agreement Reference Article IV 4.01 (c); and
Schedule 2 Section I.H(1)
Effectiveness
Description of Covenant
The Recipient has prepared a Project Implementation Manual satisfactory to the Association.
Name Recurrent Due Date Frequency
Retroactive Financing
Financing Agreement Reference Schedule 2 Section IV B(1)
Retroactive Financing
Description of Covenant
No withdrawal shall be made for payments made prior to the date of the Financing Agreement except that withdrawals up
to an aggregate amount not to exceed SDR 3,300,000 equivalent may be made for payments made prior to this date but on
or after November 30, 2011 for Eligible Expenditures.
Name Recurrent Due Date Frequency
Project Coordinator
Financing Agreement Reference Schedule 2 Section 1 A(2)
December
31, 2012
Dated Covenant
Description of Covenant
The Recipient, through MoR, shall appoint or recruit a Project Coordinator with qualifications and experience and under
terms of reference satisfactory to the Association.
Name Recurrent Due Date Frequency
National Road Transport and Safety Authority and
the Nairobi Metropolitan Transport Authority
Financing Agreement Reference Schedule 2 Section
V (1)
December
31, 2014 Dated Covenant
Description of Covenant
The Recipient shall establish and thereafter maintain the National Road Transport and Safety Authority and the Nairobi
Metropolitan Transport Authority, both under terms of reference and with resources satisfactory to the Association,
supported by qualified and experienced staff in adequate numbers.
Name Recurrent Due Date Frequency
Budgetary Modules
Financing Agreement Reference Schedule 2 Section
V (2)
March 31,
2013 Dated Covenant
Description of Covenant
The Recipient shall ensure that KeNHA‘s and KURA‘s budgetary modules are customized to move from a manual to an
automated budgetary control system under terms of reference and in a manner satisfactory to the Association.
Team Composition
Bank Staff
Name Title Specialization Unit
Josphat O. Sasia Lead Transport Specialist Team Leader AFTTR
v
Farida Khan Operations Analyst Operations Analyst AFTTR
Dahir Elmi Warsame Senior Procurement Specialist Procurement Specialist AFTPC
Gibwa A. Kajubi Senior Social Development Specialist Social Development Specialist AFTCS
Felly Akiiki Kaboyo Operations Analyst Operations Analyst AFTTR
Noreen Beg Senior Environmental Specialist Environmental Specialist AFTEN
Nightingale Rukuba-Ngaiza Senior Counsel Counsel LEGAF
Wolfgang Chadab Senior Finance Officer Finance Officer CTRLA
Shamis Salah Operations Analyst Operations Analyst AFCE2
Svetlana Khvostova Operations Analyst Environmental Specialist AFTSG
Solomon Muhuthu Waithaka Senior Highway Engineer Senior Highway Engineer AFTTR
Josphine Kabura Ngigi Financial Management Specialist Financial Management AFTFM
Peter Warutere Senior Communications Specialist Communications Specialist AFRSC
Lucy Kang'arua Program Assistant Program Assistant AFCE2
Charlene D'Almeida Team Assistant Team Assistant AFTTR
Victor Mengot Transport Specialist Road Safety AFTTR
Vasile Nicolae Olievschi Railway Specialist Railway Expert AFTTR
Paul Guitink Transport Specialist BRT Expert (Consultant) AFTTR
Consultant Traffic Engineer Traffic Engineer AFTTR
Consultant PPP Specialist PPP Expert AFTTR
Consultant Urban Specialist Urban Transport Expert AFTTR
Non Bank Staff
Name Title Office Phone City
Locations
Country First
Administ
rative
Division
Location Planned Actual Comments
Kenya
1
REPUBLIC OF KENYA
National Urban Transport Improvement Project
PROJECT APPRAISAL DOCUMENT
I. STRATEGIC CONTEXT
A. Country Context
1. Kenya has recorded a comparatively higher economic growth after two decades of low
growth. In 2010, the Kenyan economy grew by 5.7 percent, arising mainly from a recovery in
agriculture and industrial outputs and a relatively balanced growth across all the sectors. Growth
prospects have improved. Inflation declined to below five percent in 2010 and investor
confidence grew rapidly, contributing to the doubling of the level of activity at the Nairobi Stock
Exchange. However, a recent rise in inflation, averaging 14 percent in 2011 compared to 3.9
percent in 2010, and the impact of drought slowed this growth to 4.3 percent in 2011.
2. The total population of Kenya has increased rapidly over the last 30 years, and it is
continuing to urbanize. The population was 15 million in 1979 and increased to 38.6 million in
2009, with an average annual growth rate of 2.5 percent in the recent past. The population in
urban areas is now 32 percent, up from 15 percent in 1979, and it is projected to reach 19.1
million or 37 percent in 2020 and 29.8 million or 47 percent in 2030 (Table 1). Similarly, the
population of the city of Nairobi was 828,000 in 1979 and now stands at over three million or 25
percent of the urban population, and it is projected to reach 5.2 million in 2020. The high
population growth experienced in urban centers is due to several economic and social factors.
The number of urban dwellers increased in search of employment and schooling opportunities as
market forces attracted labor to the urban areas from rural areas, where the returns to labor are
considered relatively lower. The higher standard of living and relative better access to basic
public services in urban areas compared to rural areas has worked as a catalyst for urban
migration. This has placed a tremendous strain on urban services, including transport, ultimately
affecting both economic productivity and citizens‘ quality of life. In parallel, the transport sector
is rife with externalities such as traffic accidents, noise and pollution associated with fuel
emissions.
Table 1: Kenya’s Population (in millions)
Category
Actual Projected
1979 1989 1999 2009 2020 2030
Rural 13.0 17.6 18.7 26.1 32.9 33.4
Urban 2.3 3.9 10.0 12.5 19.1 29.8
Total 15.3 21.5 28.7 38.6 52.0 63.0
Urban (percentage) 15% 18% 35% 32% 37% 47%
Source: Kenya National Bureau of Statistic, Census Reports, Various
2
3. Vision 20301, Kenya‘s long-term development strategy, aims at transforming Kenya into
a middle-income country. Under its economic pillar, gross domestic product (GDP) is expected
to grow at 10 percent per annum. This calls for the removal of bottlenecks for growth through
reforms and increased investment in infrastructure, including Information Communications
Technology, to unlock existing potential and productivity, promote competitiveness, and
improve access to public services, all of which are necessary to transform Kenya from a low- to a
middle-income country by 2030. Urban areas, as the engines of economic growth, would play a
crucial role in the realization of this vision. The World Bank‘s Country Partnership Strategy
(CPS), its 2008-09 Multi-Donor Infrastructure Diagnostic for Kenya, and its 2006 Poverty
Assessment all support this agenda, given that improved infrastructure is associated with the
movement out of poverty.
4. Significant growth in GDP (about 75 percent) is attributed to economic activities in
Kenya‘s urban areas, mainly through the growth of manufacturing and services. Poverty in
urban areas has, on the other hand, increased with the mushrooming of informal settlements in
major towns. Hence, establishing a medium- to long-term vision on the role of urban areas in
supporting Kenya‘s effort to develop to a middle-income country will inevitably become a policy
priority.
5. Much of the effort of the Government of Kenya (GoK) to accelerate economic
development is focused on geographical ―growth poles‖ such as Nairobi, Kisumu, Mombasa,
Eldoret and Nakuru - the largest urban centers with the highest industrial activity. They are all
located along the Northern Corridor, Kenya‘s most important transport route, and a crucial artery
for its land-locked neighbors. Most of the Northern Corridor road has either been recently
improved or improvement is underway. This corridor forms part of the main arteries in major
towns. The main challenge is that the sections of this corridor adjoining major towns and often
passing through them are heavily congested and require capacity expansion. In Nairobi, the GoK
attempted to respond to this challenge by offering a section of the corridor to the private sector
for expansion and tolling, through a concession, under the Nairobi Urban Toll Road Project
(NUTRP), which was to be supported by the World Bank Group. Unfortunately, this offer
attracted limited interest from the private sector, and the concessioning process took an
inordinate time (about eight years), during which period circumstances changed significantly
both at the project and country level, leading the GoK to cancel the process. The congestion in
the Northern Corridor through Nairobi remains one of the major bottlenecks on the flow of
traffic to Nairobi‘s Central Business District (CBD), Jomo Kenyatta International Airport (JKIA)
and neighboring countries.
B. Sectoral and Institutional Context
6. Transport in Kenya, as in other countries performs two key roles: (a) it connects Kenya
to the world economy; and (b) it links people to economic and social activities within Kenya.
Kenya can only compete effectively, if its international gateways and associated infrastructure
1 The Kenya Vision 2030 is the national long-term development blue-print that aims to transform Kenya into a
newly industrializing, middle-income country providing a high quality of life to all its citizens by 2030 in a clean
and secure environment.
3
are of international standards. The quality of Kenya‘s transport infrastructure and services has
been improving over the last five years, after many years of under-investment. Its continued
improvement, as well as the enhancement of policy reforms, should be a priority. Reversal of
the policy reforms, existing policies and approaches can only lead to failure of the sector, as the
basic institutional structure is undergoing major transformation. New approaches are needed,
including utilizing the private sector much more extensively and much more effectively.
(a) Institutional and Policy Reforms
7. Major policy and institutional reforms have been implemented in the transport sector.
These include, among others: (a) the creation of three new autonomous road authorities by
clarifying the ownership of national, rural and urban roads; (b) separation of policy formulation
from execution of programs; (c) creation of oversight and regulatory capability in aviation and
maritime sub-sectors; (d) provision of greater transparency and accountability in the use of
designated resources such as the over US$300 million generated annually from a fuel levy for
road maintenance; (e) enactment of new policies (e.g. a roads policy, which did not exist
previously); (f) the enhancement and management of the fuel levy funds for road maintenance
without interruption and across all parts of the country; (g) provision of financial autonomy to
the aviation sub-sector entities; and (h) the development and adoption of a 15-year road sector
investment plan (RSIP). In recognition of the importance of the provision of quality
infrastructure to support economic growth prospects, the GoK in its RSIP 2010–2024 has
allocated significant resources toward improvement of transport infrastructure. For instance,
transport sector budgetary allocation as a share of total GoK expenditure increased from 9.5
percent in FY2004 to 14 percent in FY2010.
8. Although the GoK is implementing a number of reforms across the transport sector
(including in roads, aviation, railways, and maritime, with the support of the Bank) in an effort to
improve sector performance, the urban transport has lagged behind the other sub-sectors. Urban
areas now face institutional challenges, insufficient staff capacity, and an inadequate framework
for transport policy and planning, lack of transport corridor management, and inadequate
operations and maintenance budgets. This has contributed to the inadequate attention paid to
urban transport issues, including the existing complex and weak institutional oversight and
regulatory capacity and inadequate investments in urban transport infrastructure and services in
Kenya‘s major towns for over two decades.
9. The current institutional framework for urban transport involves several entities with
partial and sometimes overlapping and contradictory mandates and responsibilities, posing
serious coordination challenges. Table 2 lists several institutions involved in urban transport
matters fragmented among as many as 15 organizations.
4
Table 2: The Current Institutional Arrangements for Urban Transport
No. Organization Responsibility
1. Ministry of Transport (MoT) Formulation of the national transport policy and
transport sector administration
2. Ministry of Roads (MoR) Formulation of the national road policy and road sub-
sector administration
3. Ministry of Local Government Administering and supporting the Local Authorities
and formulating the national policy on urban
development
4. Ministry of Nairobi
Metropolitan Development
Administering and formulation of the development
polices for the Nairobi metropolitan area
5. Ministry of Lands Land administration and supporting the Local
Authorities
6. Traffic Police Enforcement of traffic regulations
7. Kenya National Highways
Authority (KeNHA)
Development and maintenance of national roads
8. Kenya Urban Roads Authority
(KURA)
Development and maintenance of city and municipal
roads
9. Kenya Rural Roads Authority
(KeRRA)
Development and maintenance of rural and small
towns roads
10. Kenya Railways Corporation
(KRC)
Development and oversight of railways
11. Rift Valley Railways (RVR) Operational management of railways (concessionaire)
12. Kenya Revenue Authority Registration of vehicles
13. Local Authorities Development and management of local and urban
areas
14. Transport Licensing Board Licensing and route allocation of public transport
15. Kenya Roads Board Administration of the Road Maintenance Levy Fund
10. The draft Integrated National Transport Policy (INTP) of 2004, which has been approved
by Cabinet and sent to Parliament for discussion and endorsement (but is not yet adopted),
supports reforms in the urban transport management structure by, among other things: (a) setting
up a National Road Transport and Safety Authority (RTSA) and increased support for the
National Road Safety Plan; (b) setting up a Nairobi Metropolitan Transport Authority (NMTA);
and (c) establishing the legal and regulatory framework for railways. Both the proposed
National Urban Transport Improvement Project (NUTRIP) and Nairobi Metropolitan Services
Improvement Project (NaMSIP) will support the implementation of these efforts.
11. The road transport industry in Kenya includes large companies and individual owner-
operators; it is competitive and tariffs are determined by market forces. The industry responds
quickly to changes in demand, road conditions and regulations. However, private bus and matatu
(mini-bus) operators numbering over 16,000 in Nairobi, have operated in an environment with
minimal regulation to the extent that at present there is indiscipline and disregard for safety and
the environmental regulations. While the intention is not to over-regulate the public transport
sector, there will be an urgent need by NMTA to bring more discipline and enforcement of safety
5
and environmental regulations for matatu operations, thereby creating resistance to this change.
Similarly, the City Council of Nairobi (CCN), which currently manages traffic and parking in the
city, stands to lose that authority once this responsibility is transferred to NMTA, and may resist
such changes. Resistance to change could slow down the pace of transformation.
12. Existing urban transport arrangements (as discussed above) are likely to evolve in the
short- to medium-term as the new constitution (2010) and the agreed reforms are implemented,
thereby affecting the institutional and implementation arrangements of NUTRIP. Modifications
may be required to respond to these changes as they ensue. Notwithstanding these challenges
and pending changes, urgent action is needed now to tackle the highly congested situation in
Nairobi and other towns. Hence, some degree of acceptable flexibility for adjustments to be
made during implementation is allowed in the design of the project.
13. The draft INTP and the new constitution provide the long-term vision on the likely
governance structure in the urban transport subsector. Even though the INTP can be seen as
contributing to the establishment of even more entities, including the RTSA and the NMTA that
will be supported by NUTRIP, the existence of these new institutions will improve the
governance structure in urban transport. For instance, the objective of the proposed NMTA, in
the case of Nairobi, is to place all the public transport issues such as licensing, regulating public
transport, and traffic management under one agency, while all national road safety matters will
be placed under the proposed RTSA. The new constitution recognizes two categories of roads,
national and county, which calls for further changes in governance structures based on a
devolved rather than a centralized system of government (as was the case under the old
constitution), implying a further realignment of the mandates of Kenya National Highways
Authority (KeNHA), Kenya Rural Roads Authority (KeRRA) and Kenya Urban Roads Authority
(KURA) since most of the urban and rural roads could fall under the category of county roads.
14. The new constitution (2010) does not specify the requisite organizational structures for
GoK institutions and agencies, and there is likely to be some consolidation of ministries at the
national level and devolution of some powers and responsibilities to the county governments.
NUTRIP recognizes these uncertainties and makes provision for possible restructuring at or
before the Mid-Term Review (MTR) to adjust the implementation arrangements when the need
arises. In readiness for the implementation of the new constitution and the looming changes, the
GoK has responded by establishing an inter-ministerial committee for the transport sector to
review and recommend a governance structure consistent with the new constitution, and to
harmonize and rationalize the current institutional arrangements and functions, taking into
account the recommendations of the draft INTP and the roads policy, and other relevant policy
documents. The committee has started its work, facilitated under the Bank-financed Kenya
Transport Sector Support Project (KTSSP). Even if changes are recommended, the transition is
likely to take three to four years before capacity is built in the counties and new institutions take
over their responsibilities. Having recognized this risk, the project allows for any restructuring
that may be needed during implementation.
6
(b) Road Transport
15. The basic urban road network is still the one designed in the 1970s. For instance, in
Nairobi, the road network was designed for less than one million inhabitants, but it is now
contending (largely unsuccessfully) to handle three times that number of inhabitants in the city.
The urban road network, excluding those sections of national highways which traverse urban
areas, is about 12,549 km, or eight percent of the total road network (Table 3), which supports 32
percent of the total population and the generation of 75 percent of GDP in the country. The result
is massive congestion, and frequent episodes of serious gridlock, which will render Nairobi
unsuitable as a business destination unless it is addressed.
Table 3: Distribution of Kenya’s Road Network by Agency (in km unless specified)
Agency Paved Unpaved Total % share
Kenya National Highways Authority (KeNHA) 6,783 6,904 13,687 8.5
Kenya Rural Roads Authority (KeRRA) 2,268 127,799 130,067 80.8
Kenya Urban Roads Authority (KURA) 2,140 10,409 12,549 7.8
Kenya Wildlife Service (KWS) 6 4,577 4,583 2.9
Total 11,197 149,689 160,886 100
Percentage share (%) 7 93 100 Source: Road Inventory and Condition Survey, Ministry of Roads, 2009
16. Decongestion of the main artery (Northern Corridor) that passes through the middle of
Nairobi and the development of new infrastructure surrounding the city is critically important to
Nairobi‘s future as a modern growth-generating urban capital. Achieving decongestion would
help to achieve that vision. The 2006 Japan International Cooperation Agency (JICA)-financed
Nairobi master plan study estimates the cost of sub-performance of intersections at KES 22.59
billion annually (2006 prices). This is a major cost to the economy.
17. Similarly, the draft INTP of 2004 indicates that 91.8 percent of Nairobi‘s road transport
arteries operate over their design capacities, resulting in frequent day-long traffic jams. It
recommends encouraging a shift to large capacity vehicles by public transport operators and to
redesign the urban traffic flows and create dedicated infrastructure for the exclusive use of large
capacity buses, i.e., a Bus Rapid Transit (BRT) system. The Mass Rapid Transit Study (MRTS)
of 2011, financed by the African Development Bank (AfDB), identified nine corridors as
potential BRT routes, based on travel demand forecasts for 2030 consistent with Vision 2030.
The proposed NUTRIP will finance the preparatory work, feasibility and detailed designs,
including Environmental and Social Impact Assessments (ESIAs), for selected BRT corridors,
covering both the engineering and operational features that constitute a BRT system. Upon
completion, the designed BRT system would lay the ground work for a successor urban transport
operation, possibly to be supported by the Bank and other development partners.
18. Poor town planning serves to exacerbate the urban transport problem. For instance, on an
ordinary day, it takes an average of more than one hour for commuters living less than 10 km
away to reach the CBD of Nairobi. Motorization is increasing, with about 1.62 million vehicles
in 2011 compared to 591,000 in 2000 on Kenyan roads (an average growth rate of about nine
7
percent per annum), of which over 40 percent are private cars, most of them used in urban areas.
Public transport vehicles such as buses and mini-buses registered a growth rate of about five
percent per annum during this period. Vehicle ownership rates, congestion, and emissions are
expected to increase significantly through the next 20 years, with average travel speeds and
accessibility continuing to decline. Poor drainage system leads to roads flooding for long periods
of time, causing congestion and mobility difficulties, particularly for the vulnerable groups
including pedestrians, children, women and other road users. Without immediate investment in
urban transport infrastructure, traffic management and services, the average trip speed (all
modes) will decline and also the average roundtrip journey time to work will increase.
Accordingly, the economic cost of a ―do-nothing‖ scenario is likely to run into billions of
shillings per annum in terms of opportunity cost and lost productivity, due to time wasted in
traffic jams.
19. Urban entities face institutional weaknesses such as insufficient staff capacity, inadequate
framework for transport policy and planning, lack of transport corridor management, and
inadequate operations and maintenance budgets. Yet, mobility and accessibility provided through
efficient and affordable urban transport is recognized as a catalyst for higher productivity, greater
access to economic opportunities, and social inclusion. Across urban transport modes in low-
and medium-income countries, public transport plays a pivotal role to enhance city efficiency—
hence the provision of an efficient public transport infrastructure becomes critical.
20. The ineffective institutional structures and weak legal and regulatory framework have
impacted negatively on the quality, reliability and safety for the public transport users,
particularly in urban areas. In addition to poor public transport services, the inter-modal linkages
and connectivity are minimal, if any at all. The highly unregulated matatus (mini-buses) are the
backbone of the public mass transport system. Studies indicate that matatus carry about 33
percent of urban commuter traffic, while about 47 percent of residents of Nairobi walk to their
places of work (MTRS, 2011). In the Nairobi metropolitan area, it is estimated that public buses
carry about 350,000 - 400,000 passengers per day (about 19 percent) and the balance is
commuter rail.
(c) Rail Transport
21. The railway network is skeletal and offers negligible public transport services at present.
The draft INTP of 2004 summarizes the rail transport in Kenya as manifesting the following
features: (a) weak corporate governance and lack of managerial independence; (b) comparatively
high operational costs; (c) inadequate investments in infrastructure and operations; (d) outdated
railway technology; and (e) political interference in resource allocation and loss of commercial
customers. In 2006, Kenya Railway Corporation (KRC) concessioned the rail services to Rift
Valley Railways (RVR), giving RVR the exclusive right to operate rail freight and commuter
services, thereby shifting the operational function and risks to the concessionaire. In accordance
with the concession agreement, RVR was to operate the commuter rail services until June 30,
2012. Recently, the GoK approved an extension of this agreement for RVR to operate passenger
trains for an additional period of three years.
8
22. Commuter rail has been providing some morning and evening peak-hour passenger
services since 1992, carrying about one percent of passenger traffic. However, the rail system is
rapidly deteriorating, due to inadequate funding, unclear management structures and poorly
defined service provision (especially passenger services), resulting in serious infrastructure
maintenance backlogs and overage and worn-out rolling stock. Development of a comprehensive
and coherent urban transport system is therefore, required including good inter-agency
coordination. NUTRIP and NaMSIP, also financed by World Bank, seek to address some of
these issues.
23. Urban rail commuter passenger services in Nairobi city are offered on three routes with
all the trains terminating at the central railway station. Most people are not linked to railways.
Motive power for passenger services is provided from the concessionaire’s (RVR) pool of aged
diesel locomotives that are poorly suited for the purpose.
24. Furthermore, locomotives are shared with freight services that take priority in rail access
and locomotive power allocation, resulting in frequent cancellation of passenger services. Thus,
the reliability and quality of passenger operations are limited by the condition of the
infrastructure network, the lack of adequate rolling stock, and the higher priority given to the
potentially profitable freight rather than the passenger services. This is one of the risks to be
addressed and is the basis of further reforms in the rail sub-sector, requiring the establishment of
modalities that will facilitate equitable access for freight and passenger services. On top of this,
commuters still spend a lot of time changing from one mode of transport to another because of a
lack of intermodal terminals that would facilitate rapid and convenient change of transport
modes. As a result, railway modal share in urban passenger transport stands at 22,000 passengers
per day (one percent of public transport demand), despite the potential demand for rail services
in densely-populated urban areas served by the core network. The development of a regulatory
framework for railways is in progress under the Bank-financed KTSSP.
25. KRC operations are governed by the KRC Act and its operations are also subject to the
provisions in the State Corporations Act and the Exchequer and Audit Act. Therefore, guidelines
that are issued from time to time on the operations of the State Corporations by the GoK
influence the management and operation of the KRC and occasionally inhibit management‘s
decision-making process through directions from various GoK agencies.
26. Although the KRC Act does not limit further privatization of railway operations, the
Kenya Concession Agreement between the GoK, KRC and RVR works against it. The
Agreement is not based on the principle of open access to newcomers in the commuter rail
market. Since RVR is responsible for rail freight operations and maintaining the infrastructure, it
is inevitable that priority will be given to the freight trains, the more profitable business.
Assuming access is granted to a new private service provider, RVR, as the provider of track
maintenance, will set the maintenance priorities and grant the right for accessing the track at a
fee. The Bank-financed KTSSP is therefore providing assistance for reforming the railways sub-
sector, by developing a legal and regulatory framework that will encourage the development of a
competitive, efficient railway system anchored in a transparent contractual relationship between
the GoK and KRC for services to be provided, directly or via concession contracts, covering
9
(multi-annual) infrastructure maintenance contracts, public service contracts and compensatory
mechanisms for the procurement of passenger rolling stock.
(d) Bus Transport
27. BRT systems are emerging all over the world, including in the United States of America,
Latin America and Europe, because of their relatively low implementation costs. For instance,
construction costs for BRT are estimated at about 10 percent of metropolitan rail construction
costs and 30-50 percent of light rail (tram) construction costs, with passenger volumes between
10,000–40,000 passengers per hour in each direction, depending on the system layout
characteristics. However, it should be emphasized that successful introduction of BRT systems,
based on Bank experience elsewhere, requires strong political commitment to deal with deep
vested interests linked to the provision of conventional, inefficient transport services.
28. Studies aimed at addressing urban public challenges have been carried out in Nairobi in
the recent past. For instance, the MRTS for the Nairobi metropolitan region (2011) and a study
on the master plan for urban transport in the Nairobi metropolitan area (2006), financed by JICA,
highlight some of the main transport-related challenges facing major towns and cities in Kenya,
which include: worsening traffic congestion; institutional segregation and inadequate financial
resources; poor public road transport systems; noise and air pollution (greenhouse gas emissions)
from vehicles in the major towns; and high accident rates (with Nairobi recording over 2,000
fatal accidents annually over the last four years and about 3,000 people dying annually from all
road crashes on Kenyan roads). Mass transit systems, building capacity, and streamlining
institutional arrangements could help address part of this challenge. The relevant activities will
be supported under NUTRIP.
29. The MoT has been building support for the establishment of NMTA through
consultations, such that the Cabinet has approved the INTP. The INTP calls for the creation of
NMTA and RTSA and introduction of high-capacity buses (phasing-out matatus), among other
recommendations. Component B under the project (Support to KURA and KRC to Develop
Mass Transit Corridors) includes preparatory work for the introduction of BRT systems and
measures to involve the matatu owners and private bus operators in participating in the provision
of these services. The measures would include franchises to run larger buses on BRT routes
while focusing mini-buses on feeder routes, learning from the experience of similar efforts in
Dar es Salaam, Tanzania; South Africa; and Nigeria among other African countries. In order to
develop an integrated urban public transport system, the GoK has plans to reform further the
railway subsector, particularly with regard to the establishment of a clear regulatory framework
to support and deepen private sector participation over and above the current railway concession.
The process of selecting a consultant to support the implementation of this decision has begun,
with financing from the Bank-financed KTSSP.
30. Given the experience on BRT systems elsewhere, and in an effort to improve urban
public transport, the GoK has decided to incorporate mass transit systems measures
recommended by various studies in the improvement of roads in Nairobi, such as the Northern
Corridor through Nairobi (part of Component A of NUTRIP). For this reason, the consultant
carrying out the detailed designs, with GoK financing, for upgrading of the JKIA-Rironi road
10
section has been instructed to include BRT systems in the detailed designs. The upgrading
works will be financed under NUTRIP. It is probable therefore that the JKIA-Rironi BRT
corridor will be ready for development much earlier than the rest, calling for possibly additional
financing under NUTRIP. In addition, KURA is preparing short-term traffic management
measures for the Nairobi CBD that could be implemented as part of the BRT preparation, which
could include the provision of sidewalks, pedestrian crossings and direct and safe pedestrian and
bicycle routes, and could also encompass the establishment of a CBD traffic management control
center.
(e) Road Concessions and Tolling
31. In an effort to promote private sector participation in financing and managing road
infrastructure, the GoK offered a section of the Northern Corridor road passing through Nairobi
for tolling. The Bank financed the advisory services for this concession under NCTIP. The
process began in 2003 and it was not until 2007 when the bids were invited, under another IDA-
financed project. This followed the outcome and recommendations of feasibility studies
conducted by internationally recruited consultants. While three firms were pre-qualified, only
one consortium submitted a bid. The sponsors had requested the World Bank Group, among
others, for partial financing of the capital investment and provision of guarantees against political
risks. However, the World Bank Group could not support the consortium after it emerged that
significant changes had occurred over the intervening period (nine years) at both project and
country level, rendering the implementation of the project untenable. As a result, the GoK
decided to terminate the concessioning process.
32. An important lesson learned from the ―failed‖ concession is the risk involved in
structuring Public Private Partnerships (PPPs) for toll roads on a single project-by-project basis.
It took three years to undertake the initial pre-feasibility studies, a further four years to prepare
and invite bids for the concession and another two years to do the due diligence on the sponsors,
yet in the end, the concession agreement was not signed. If the same process is used on the next
toll road to be constructed, the risk is high that it could also fail and a significant amount of time
and effort would be lost.
33. KeNHA is mandated through the Kenya Roads Act (2007) to charge tolls, to establish or
acquire subsidiary corporations and enter into agreements with any state-owned or other entities
to promote its business of delivering road infrastructure and services. It is therefore suggested
that the initial effort be spent to: (a) carry out an option study on private sector participation in
managing and financing road investments; and (b) implement the recommendation of the option
study and prepare the requisite bidding documents. The study will inform the GoK of the
preferred option after examining the alternative ways to enhance KeNHA‘s capacity in
mobilizing private sector financing and structuring PPPs in an expeditious and efficient manner.
For this purpose, NUTRIP provides for selection of a consulting firm with experience to support
KeNHA to develop the concept and formulate alternative strategies to create such a capacity in
KeNHA. Thereafter, NUTRIP will support KeNHA to implement the selected strategy, drawing
on the lessons from and recent experiences of other road authorities tasked with similar
responsibilities, such as the South African National Roads Agency, Rajasthan Infrastructure
Development Corporation of India, Thailand Expressway Authority and others focused on
11
raising private sector financing for viable toll roads and tendering competitive contracts for
construction of the high speed facilities and managing toll collection.
34. In parallel to the above effort, the ongoing KTSSP supports a comprehensive study of the
entire Northern Corridor in Kenya from Mombasa to Malaba, including aerial mapping, with the
aim of: (a) identifying a suitable alignment for a multi-lane high speed facility (preferably a
controlled access expressway); (b) estimating costs on the basis of preliminary designs; (c)
packaging suitable sections for PPP; and (d) developing a timetable for completing the entire
highway in a fixed time period. As the strategy for enhancing KeNHA‘s capacity for developing
PPPs and mobilizing private sector is adopted, delivering the Mombasa-Malaba multi-lane
expressway in stages could become the first priority.
(f) Governance
35. Governance in the transport sector has been challenging, but significant improvements
have been made in the recent past. Risks included complex institutional arrangements; unclear
responsibility and ownership arrangements of the road networks; collusion and other forms of
bid rigging; fraud during implementation; and overloading of vehicles that destroyed the road
infrastructure, among others. To mitigate the risks and enhance integrity, the Bank and the GoK,
with the guidance of the Integrity Vice Presidency (INT), agreed on a Roads Sector Governance
and Integrity Improvement Action Plan (GAP), which is being implemented under NCTIP, and
where appropriate, has been adopted for the ongoing KTSSP financed by the Bank.
36. The GoK has implemented or is implementing the agreed GAP actions. For instance, new
autonomous road authorities have been established, thereby clarifying the institutional
arrangements in the road sub-sector. There is now public dissemination of road programs and
opportunities. Contract awards are published; and international standards of practice for
management of large contracts are gradually being adopted, even for GoK-funded contracts (e.g.
an independent consultant is appointed as the ―Engineer‖ on all major construction works). In
addition, reinforcement of procurement regulations and road maintenance manuals have been
developed and are in use.
37. The oversight functions are also being strengthened. Parliament has approved the
establishment of a regulatory body for the construction industry (National Construction
Authority) with powers to register contractors, monitoring their performance and publishing
names of poor performers and those that are debarred. Similarly, Parliament has approved the
strengthening of the regulatory body for consulting and practicing the engineering profession
(Engineers Board of Kenya), with powers to register professionals and engineering firms, assess
their qualifications, monitor their performance, and exercise the right to sanction poor
performance or unethical behavior. Transparency and accountability are also improving, such
that a new road policy was enacted that clarified the institutional arrangements in the road sub-
sector and adopted a long-term road sector investment plan. Lastly, in-depth analysis of the cost
of road construction is improving. Cost estimation manuals have been developed and launched;
construction unit costs are investigated and estimated more rigorously; and bids under both
Government- and donor-funded projects are subjected to much higher levels of scrutiny than
before, and bids are invited without pre-qualification to reduce chances of collusion.
12
38. Implementing a combination of these GAP measures in the road sub-sector has therefore
resulted in improving the business environment, increasing competition, and the GoK obtaining
comparatively more competitive bids than before (from two to three bids to over nine on
average), with some final prices below the engineer‘s estimates. Similarly, NUTRIP, where
appropriate, will adopt relevant aspects of the GAP: in particular unit costs will be rigorously
investigated and estimated; stringent due diligence will be done of bidders, consultants and
suppliers; bids and qualifications will be subjected to much higher levels of scrutiny; use of post-
qualification of bidders for large works contracts will be continued; and the ―Engineer‖ will be
the independent works supervision consultants.
(g) Sector Investments Plans
39. The urban public transport services currently offered do not cater to the needs of the
majority, who still walk to their places of work. To improve delivery of transport services in the
country, a 15-year (2010-2024) Road Sector Investment Plan (RSIP) has been developed and
adopted with clear priorities, and a 50-year transport master plan (involving all modes of
transport with a specific 10-year investment plan) is proposed to be prepared to complement the
agreed institutional and policy reforms. The selection of a consultant to develop the 50-year
transport master plan is underway and the assignment will be funded through the Bank-financed
NCTIP. In addition, targeted studies have been carried out, including feasibility of mass transit
systems and a road network master plan for Nairobi.
40. These studies have recommended priority interventions, such as improving existing road
corridors; constructing critical complementary missing road links; developing mass transit
corridors, including commuter rail and BRT systems; addressing the poor drainage system in
urban areas; and providing safe and direct facilities for Non-Motorized Transport (NMT). The
studies are focused on, but not limited to, improvement of public transport access which is
required to address the high traffic congestion that is having serious economic consequences on
reducing labor productivity, leading to losses in GDP and contributing to an already deteriorating
situation of air pollution. The Bank supports the implementation of the 15-year RSIP, which
includes urban transport investments such as those proposed under the NUTRIP. However, there
is no coherent urban transport sector strategy to support the development of an efficient urban
transport system, including BRT systems and commuter rail services. NUTRIP will therefore
support its development.
Rationale for Bank Involvement
41. The urban transport subsector has received little attention for almost three decades.
Accordingly, the myriad and complex issues related to the provision of urban public transport
services and infrastructure remain largely unaddressed, compared to the other transport sub-
sectors where the World Bank has been engaged for a longer period and significant reforms have
been carried out, leading to improvement of delivery of services. The recent re-engagement by
the World Bank in the urban transport sub-sector has enhanced the momentum of the GoK in
addressing urban public transport issues, including agreeing to implement reforms that have
posed a significant challenge in the past. This will also consolidate and build on the benefits
achieved in other sub-sectors in Kenya‘s transport sector, notably roads and aviation, with World
13
Bank assistance.
42. The World Bank has experience from other countries in developing mass transit corridors
such as BRT and Light Rail Transit (LRT) systems, particularly in creating the requisite
implementation and regulatory capacity, and this experience could be shared and offer relevant
lessons. Furthermore, to enhance network continuity and consistency, construction works are
ongoing to upgrade some of the major road arteries in Nairobi, such as: (a) the Thika road, (b)
the eastern bypass, (c) the northern bypass, (d) the southern bypass, and (e) the junction on
Airport North Road/Outer Ring Road. It is therefore critical that the adjoining section of the
Northern Corridor through Nairobi (namely JKIA turnoff–Rironi, which forms the main road
artery) is improved, complemented by improvement of other junctions and effective traffic
management measures. The NUTRIP will support expansion of this corridor.
C. Higher Level Objectives to which the Project Contributes
43. The proposed project will support Kenya‘s economic development strategy, and address
the mounting pressures on the major urban centers (mainly Nairobi) as well as road and related
transport infrastructure, while also laying the foundation for developing an efficient urban public
transport system (see map for the project area in Annex 8). This will help to: (a) increase
capacity of the urban road network, rationalize the use of scarce road space, and improve traffic
flows and reduce traffic accidents along the key road artery, partly caused by heavy vehicles
travelling to and from the port of Mombasa; (b) promote the development of Nairobi‘s economy,
focusing on satisfying the transportation demands going in and out of the city, including proper
management of trucks in the city; (c) connect efficiently with the other urban traffic
infrastructure systems currently under construction (Thika road to the north, and the eastern and
southern bypasses); (d) prepare a model mass transport system aimed at providing affordable and
efficient public transport services in urban areas, particularly for serving the low-income
populations, especially in the CBD of Nairobi and along the developed high density corridors;
and (e) build the operational and managerial capacity and efficiency of urban transport agencies
in dealing with urbanization and transportation.
44. The project is also aligned well with the Bank‘s Africa Strategy,2 which is built on the
foundation of governance and public sector capacity. The proposed institutional reforms and
technical assistance interventions will significantly improve governance in the urban transport
sector, especially by consolidating the various fragmented functions under one autonomous
institution, namely the proposed NMTA. It will be further enhanced by the adoption of the INTP
as the main framework for public sector investments in transport; capacity will be enhanced
through the provision of targeted technical assistance to improve the delivery of public transport
services. Furthermore, the project supports the key pillar of the Africa Strategy, namely,
competitiveness and employment, by improving the business environment in Nairobi and other
urban areas through reduction of traffic congestion and transport costs in addition to creation of
jobs, not only during the construction phase but also as a result of the multiplier effect of an
improved economy.
2 Africa‘s Future and the World Bank‘s Support to It, The World Bank, March 2011
14
45. The proposed NUTRIP will build on recent positive changes in the transport sector and
will deepen and support the implementation of the ongoing policy and institutional reforms; the
implementation of the 15-year investment program in the road sub-sector and mass transit
systems; implementation of the INTP; and implementation of the Bank‘s Country Partnership
Strategy for Kenya, which emphasizes developing an efficient transport system needed for a
modern economy.
II. PROJECT DEVELOPMENT OBJECTIVES
A. Project Development Objectives
46. The Project Development Objectives (PDO) are to: (a) improve the efficiency of road
transport along the Northern Corridor; (b) improve the institutional capacity and arrangements in
the urban transport sub-sector; and (c) promote private sector participation in the operation,
financing and management of transport systems.
47. Objective (a) would be achieved by financing the improvement of the Northern Corridor
road section from the JKIA turnoff through Westlands to Rironi road, i.e., through central
Nairobi, as well as associated service roads and major junctions; by improving the access road to
JKIA; and by building the Kisumu bypass.
48. Objective (b) would be achieved by helping to establish and build the capacity of a public
urban transport authority, with responsibility for coordinating and regulating public transport,
recommending policies on pricing and investments, financing equipment and related traffic
management systems to rationalize the use of urban road space, and facilitating smoother traffic
flows in Nairobi (including traffic signaling systems). The authority will also be responsible for
conducting the feasibility and detailed engineering and operational designs for selected pilot
BRT corridors in Nairobi, including their integration with other public transport modes
(predominantly feeder buses and commuter rail) and improved accessibility to public transport
stations and stops for NMT; and for preparatory work for improving selected commuter rail lines
and congested road sections in urban areas.
49. Objective (c) would be achieved by the GoK offering one BRT corridor and one
commuter line for operation to the private sector, and KeNHA developing and adopting a
preferred option of building its capacity in private sector participation in managing and financing
road investments.
50. The improvement of public urban transport would support the mobility of the low-income
populations in urban areas who comprise the main users of public transport; reduce traffic
congestion, reduce transport costs, travel time, air pollution and improve service delivery to
citizens.
B. Project Beneficiaries
51. The improvement of parts of the Northern Corridor road through Nairobi will support
decongestion of Nairobi, facilitate improved road access to Nairobi‘s international airport,
facilitate regional and international trade, and lay the foundation for the development of mass
15
transit systems that would benefit the low-income populations in the project area and beyond.
The major road corridors serve high potential, productive and populous areas, particularly
Nairobi, with a population of over three million and home to the largest industrial base in the
country. The Northern Corridor is also the main transport backbone for Eastern Africa, linking
Uganda, Tanzania, South Sudan, Rwanda, Burundi and Eastern Democratic Republic of Congo
to the port of Mombasa.
52. The main beneficiaries of the identified road, public transport and traffic management
improvements are the road users, including businesses, and local communities in the project area.
Based on the 2006 traffic figures, about 300,000 direct beneficiaries, of which about 40 percent
are female (road users excluding bicycle riders), use these road sections per day. The travel time
along these road sections is expected to fall by at least 30 percent and vehicle operating costs are
expected to be reduced by 25 percent with the proposed improvements; and the provision of
road-side amenities, including bicycle tracks, pedestrian crossings, service roads along the
selected road sections, and improvement of junctions will enhance road safety. Finally,
strengthening the capacities of the institutions in the transport sector will enhance the delivery of
services to all Kenyans.
C. PDO Level Results Indicators
53. The PDO results indicators are as follows:
(i) Reduction in average travel time from the junction for Jomo Kenyatta International
Airport (JKIA) to Rironi road;
(ii) Reduction in vehicle operating costs from the junction JKIA to Rironi road;
(iii) Number of road users per day (of which % female) directly benefitting from the
project;
(iv) Improved institutional capacity in the urban transport sub-sector through establishment
of the NMTA, RTSA and development and use of urban public transport rules and
regulations;
(v) PPP promotion and development of private sector opportunities in the transport sector;
and
(vi) Number of road crashes reduced along the road from JKIA to Rironi road.
III. PROJECT DESCRIPTION
A. Project Components
54. The project activities will support: (a) the implementation of policy and institutional
reforms in transport, particularly urban public transport; (b) the creation of institutional capacity
to provide oversight and regulatory functions to support the delivery of urban public transport
services; (c) the preparation of appropriate investment interventions that would promote urban
public mass transit systems; and (d) financing infrastructure improvements to decongest major
towns necessary to support Kenya‘s long term development strategy (see Annex 2 for details).
16
55. Component A: Support to KeNHA to Upgrade the Urban Road Transport
Infrastructure (total cost US$311.15 million, of which IDA US$223.26 million). The selected
road sections are among the top priorities in the RSIP. This component will involve:
(a) Expanding and upgrading the Northern Corridor road section through Nairobi from
JKIA turnoff to Rironi road, as well as associated service roads and access roads; all
through provision of goods, works and services.
(b) Constructing the Kisumu northern bypass road.
(c) Constructing and rehabilitating non-motorized transport facilities, including foot paths,
cycle tracks, pedestrian bridges and underpasses.
(d) Carrying out feasibility and detailed engineering design studies of roads adjoining
major towns and studies for improvement of traffic flows through provision of
technical advisory services.
(e) Strengthening the capacity of KeNHA by: (i) supplying and installing a management
information system; (ii) developing a safeguards framework for the road sector; (iii)
carrying out an option study on private sector participation in managing and financing
road investments; (iv) implementing the recommendation of the option study and
preparing the requisite bidding documents; and (v) improving its capacity for contract
management, monitoring and evaluation through training and provision of technical
advisory services.
(f) Strengthening the capacity of the External Resources Department and the State Law
Office to support effective management of the Project, through training and provision
of technical advisory services.
(g) Supervising road works constructed under Component A of the Project and provision of
technical advisory services.
(h) Establishing a program to address Human Immunodeficiency Virus/Acquired Immune
Deficiency Syndrome (HIV/AIDS) in all the roads contracts, through provision of
goods and services.
56. Component B: Support to KURA and KRC to Develop Selected Mass Transit
Corridors (total cost US$80.46 million, of which US$59.70 million IDA). The activities under
this component of the project--which include carrying out feasibility studies and detailed
engineering designs and preparation of bidding and contract documents for works and associated
facilities as well as selection of private sector operators to provide large capacity buses for a
BRT system and rolling stock for a commuter rail system—are a precursor for a successor
project. The follow-on activities could materialize in the short to medium term. This therefore
requires (i) the GoK simultaneously to prepare an urban public transport development strategy
and address the associated regulatory and oversight issues associated with the provision of urban
public transport; as well as (ii) flexibility in the financing plan, including a possibility of
additional financing.
57. Under this component, the feasibility studies on the proposed BRT systems will include
an ESIA which will evaluate environmental issues associated with direct and indirect impacts
during the planning, construction, and operation phases, and outline its implementation in
relation to other aspects of project preparation, design, and implementation. Similarly the
feasibility studies on the proposed commuter rail lines will include an ESIA for the construction
17
of the high-density commuter railway line and its associated facilities. The EIA will address
environmental impacts which may arise from construction and operation activities and provide a
mitigation plan to prevent or minimize adverse impacts. This component will comprise two sub
components, B1 and B2.
58. Sub-component B1. KURA (sub-total cost US$64.83 million, of which US$47.77
million IDA). This component will involve:
(a) Carrying out a range of feasibility studies, including detailed designs, and preparing
bidding documents for selected Bus Rapid Transit (BRT) road corridors through
provision of technical advisory services.
(b) Providing public transport and associated services through provision of technical
assistance.
(c) Developing and implementing a scheme to decongest major urban areas through
provision of goods, services and works.
(d) Carrying out activities to improve traffic management, including construction of traffic
control centers, provision of traffic management Information Communication
Technology (ICT) solutions, all through the provision of goods, works and services.
(e) Implementing regulatory reforms to rationalize the provision of public transport
services and strengthen the management of public transport operations, through
provision of services.
(f) Constructing the Meru bypass roads.
(g) Strengthening the capacity of KURA to implement urban transport reforms through
training and provision of goods, services and technical assistance.
(h) Building the capacity of KURA‘s staff in traffic planning, management, regulation and
involvement of private sector in financing urban transport infrastructure and relevant
services, through provision of services and training.
(i) Carrying out: (i) feasibility and detailed engineering design studies of missing road
links in major towns, (ii) a study and also developing an urban transport plan for the
city of Mombasa, and (iii) a study for the improvement of traffic flows of major towns,
all through provision of technical advisory services.
(j) Supervising road works construction in Sub component B1 of the project, through
provision of technical advisory services.
(k) Establishing a program to address HIV/AIDS in all the roads contracts, through
provision of goods and services.3
59. Sub-component B2. KRC (sub-total cost US$15.63 million, of which US$11.93 million
IDA). This component will involve:
(a) Carrying out feasibility studies and detailed designs; and preparing the necessary
bidding documents for construction of selected commuter rail systems in Nairobi and
other major towns through provision of technical advisory services.
(b) Preparing bidding and contract documents for the selection of private sector operators
providing commuter rail operations and associated services; through provision of
advisory services.
3 The HIV/AIDs program is for all road contracts under Component A and Sub-component B1 in the project.
18
(c) Supplying and installing information systems (IT) and building the capacity of KRC in
IT, management of private sector involvement, planning, management of contracts
including for concessionaires; and other oversight functions; all through provision of
goods, training and services.
60. Component C: Institutional Strengthening and Capacity Building (total cost
US$21.50 million, of which US$17.04 million IDA): This component will support and deepen the
implementation of reforms in the transport sector with a major focus on urban transport. This
component has two sub components, C1 and C2.
61. Sub-component C1. Ministry of Transport (sub-total cost US$16.90 million, of which
US$13.44 million IDA). This component will involve:
(a) Implementing selected activities in the Integrated National Transport Policy agreed
with the Association, including establishing and developing the capacity of the
proposed National Road Transport and Safety Authority to carry out its functions, all
through provision of goods, works, and services.
(b) Establishing and strengthening the capacity of the proposed Nairobi Metropolitan
Transport Authority to carry out its functions through provision of goods and services.
(c) Strengthening the capacity of the East Africa School of Aviation, and promoting private
sector participation in the aviation sub-sector, through provision of technical advisory
services.
(d) Carrying out urban transport sub-sector studies, and providing technical advisory
services.
(e) Building the capacity of MoT staff to carry out their responsibilities, through training
and provision of technical advisory services.
62. Sub-component C2. Ministry of Roads (sub-total cost US$4.60 million, of which
US$3.60 million IDA). This component will involve:
(a) Strengthening the capacity of MoR staff to carry out its responsibilities, including
monitoring and evaluation of the Project, through training, provision of goods and
services.
(b) Building the capacity of the newly established National Construction Authority and
preparing the implementing regulations for the National Construction Authority Act
(2011), through provision of goods and services.
(c) Building the capacity of the newly established Engineers Board of Kenya and
developing the implementing regulations for the Engineers Act (2011), through
provision of goods and services.
B. Project Financing
63. The GoK is financing fully the project preparatory feasibility and detailed designs and
associated environmental and social assessments related to the road works contracts. It will also
finance the incremental operating costs for implementing the project, as well as the expenditures
related to any resettlement, land acquisition, compensation and relocation of public utilities to
pave the way for construction works along the selected corridors. The rest of the activities of the
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project will be financed jointly by IDA (80%) and GoK (20%), as summarized in Table 4 and
detailed in Annex 2, Table 2.
1. Lending Instrument
64. The lending instrument chosen for this project is a Specific Investment Loan, because it
will support rehabilitation of specific economic, social and institutional infrastructure. The
activities against which funds are to be disbursed are well-defined and specific.
2. Table on Project Costs and Financing Plan
Table 4: Project Cost and Financing (Preliminary Cost Estimates)
Project Component Estimate
Cost
(US$m)
IDA Financing GoK*
(US$m) US$m (% of
total)
A. Support to KeNHA to Upgrade the Urban Road Transport
Infrastructure
Sub-total for Component A 311.15 223.26 74.4 87.89
B. Support to KURA and KRC to Develop Selected Mass
Transit Corridors
B1. KURA 64.83 47.77 15.9 17.06
B2. KRC 15.63 11.93 4 3.70
Sub-Total for Component B 80.46 59.70 19.9 20.76
C. Institutional Strengthening and Capacity Building
C1. MoT 16.90 13.44 4.5 3.46
C2. MoR 4.60 3.60 1.2 1.00
Sub-Total for Component C 21.50 17.04 5.7 4.46
Total Costs and Financing Required 413.11 300.00 100 113.11
Of which: Physical Contingencies
Price Contingencies
23.90
28.84
17.51
20.68
5.8
6.9
6.38
8.17 Note * Overall, GoK will finance 27 percent of the total cost of the project, which include expenditures associated with
implementation of the RAPs and relocation of services on road corridors to be expanded and or rehabilitated.
C. Lessons Learned and Reflected in the Project Design
65. Experience with Bank financed projects in the transport sector and their implementation
record in Kenya presents a number of useful lessons:
(a) The choice of project activities should reflect the priorities of the Government, potential
beneficiaries and other stakeholders to ensure ownership. Under the KTSSP, the GoK
financed project preparation, including the feasibility and detailed designs and associated
environmental and social assessments; while under the NCTIP, a GoK-established inter-
ministerial committee steered the reform process successfully;
(b) Under NCTIP and KTSSP, project preparation and implementation are mainstreamed
within the operations of the entities responsible for the roads and aviation functions. This
20
has helped build institutional capacity and ownership, thereby assuring sustainability
after completion of the projects. NCTIP and KTSSP benefited from this approach, which
will be replicated in the proposed NUTRIP;
(c) The necessary policy, institutional, procurement and financial management reforms
implemented or underway in the sector have arisen from sustained dialogue and
consultations in defining and agreeing on them under the leadership of GoK. Therefore,
follow-on operations, appropriately timed, are required to bolster the gains from policy
and institutional reforms that have been initiated under previous operations and require
completion or enhancement;
(d) Project preparation, design and supervision effort need to reflect sustained dialogue
between IDA and GoK. Reporting, auditing and accountability measures should begin
early to ensure timely detection and remedy of implementation problems; and
(e) NCTIP was the first major transport project financed by the Bank after a long break in its
lending program to the transport sector, and it was necessary to build capacity in the
implementing agencies to manage externally financed major projects. However, key
success factors that have been incorporated from the experience of NCTIP and KTSSP
are: (i) advance preparation of design and bidding documents for the major civil works
contracts; (ii) involvement of INT advisory services during preparation of the project; and
(iii) more intensive and continuous implementation support from the Bank‘s Country
Office in Kenya to resolve issues and constraints in a timely fashion.
IV. IMPLEMENTATION
A. Institutional and Implementation Arrangements
66. Project execution will be carried out by five implementing agencies (Annex 3, figure 1
for a schematic illustration), namely, KeNHA, KURA, KRC, MoT and MoR. Except for KURA,
the four other agencies are currently implementing Bank-financed projects, though a number of
the project staff in KURA also have working experience on Bank-funded operations. The MoR
will be responsible for overall project coordination and each implementing agency will be
responsible for the implementation of its respective component or subcomponent of the project.
The project will be mainstreamed into the operations of these institutions and form an integral
part of their operations and investment programs.
67. The project will be implemented as follows:
(a) Component A: KeNHA
(b) Sub-component B1: KURA
(c) Sub-component B2: KRC
(d) Sub-component C1: MoT
(e) Sub-component C2: MoR
68. Project Oversight Committee (POC): The GoK has established the POC to (a) provide
strategic and policy guidance for Project implementation; (b) liaise with the Mass Rapid Transit
(MRT) Consultative Committee; (c) review and approve annual work plans for the Project; and
(d) review project financial reports. The POC will comprise the Permanent Secretary (PS) of
MoT, a representative of the Ministry of Finance, Chief Executive Officers (CEOs) of all the
21
project implementing entities and the Permanent Secretary of MoR, who shall also be chair of
the POC. The process of establishing the POC falls under the administrative procedures of the
GoK. Accordingly, the PS, MoR, has written to all the members comprising the POC formalizing
this arrangement.
69. Project Coordinator (PC): To promote effective implementation, oversight and
coordination of the project, the GoK will by December 31, 2012, appoint or recruit for MoR a
PC with qualifications and experience under terms of reference satisfactory to the Association.
The PC will be responsible for the overall coordination of and reporting on the project, providing
strategic oversight and preparation of project reports and acting as the secretary for both the POC
and MRT Consultative Committee. Until such a time as the PC for NUTRIP is selected, the one
currently coordinating the activities of both the Bank-financed NCTIP and KTSSP will act in this
position during the intervening period.
70. Mass Rapid Transit Consultative Committee. The development and oversight of urban
public transport systems such as the MRT and BRT is multi-disciplinary, with a myriad of
transport-related activities to be completed concurrently. Thus, a strong institutional structure to
deal with these issues is imperative to facilitate inter-ministerial coordination on technical and
decision-making levels, so that consistency between engineering and associated construction
works, operational and regulatory aspects is created. For this reason, the GoK has established a
MRT Consultative Committee, with the responsibility for providing such technical and policy
advice to the POC on matters related to urban public transport like MRT, including BRT. The
committee will include, inter alia, the Roads Secretary (as chair), representatives of MoT, the
Ministry of Local Government, KeNHA, KURA, KRC, the Matatu Owners Association, the
Matatu Welfare Association, private bus operators, the Director of City Planning of the City
Council of Nairobi, the Chairman of the Nairobi Central Business District Association, the
Director of Physical Planning, the Traffic Commandant, the Kenya Private Sector Alliance, and
the City Engineer of the City Council of Nairobi. The MRT Consultative Committee may co-opt
other key stakeholders if need arises. As is the case with the process of establishing the POC, the
PS MoR, as the Chair of the POC, has written to all the organizations that are represented on the
MRT Consultative Committee to nominate officials.
71. Project Implementation Teams (PITs). Each implementing agency will appoint a PIT,
which will be empowered to manage the day-to-day activities of its components of the project.
All the PITs will comprise regular staff of the implementing agencies. Each PIT will be headed
by a Team Leader and will comprise members with the appropriate skills and adequate
experience and qualifications. The Team Leader will report directly to the Chief Executive
Officer (CEO) of KeNHA, KURA and KRC, or to the PS of MoT, as appropriate. The members
of all PITs have already been appointed, and the World Bank will be consulted prior to any
changes in PIT membership. PIT duties and responsibilities are elaborated in Annex 3.
72. These implementation arrangements take into account the experience learnt from other
World Bank financed projects in Kenya. Adequate capacity building on operational BRT
components will be provided to the KURA PIT through internationally-recruited technical
assistance and training. Keeping infrastructure and operations components in one agency
facilitates good coordination in the preparation of the various BRT components. Once the
22
proposed NMTA is established, the KURA PIT could be transformed into the Public Transport
Department as part of the Authority.
73. The impact of implementing the new constitution and agreed reforms: The
implementation arrangements are likely to change in the short- to medium-term as the new
constitution and agreed reforms are implemented, which could also lead to delays as the new
Government reorganizes itself, including by consolidating ministries and departments.
Modifications are therefore likely to arise to respond to these changes. The changes that are
likely may involve merging or changing roles or having new institutions altogether, such as the
proposed NMTA, that could be involved in the implementation of the project. These
uncertainties are noted and therefore possible restructuring at or before the MTR may have to be
carried out to adjust the implementation arrangements accordingly.
B. Results Monitoring and Evaluation
74. Monitoring of project performance will be carried out by a consultant (an accredited
university consulting unit) and some of the risks identified in the Operational Risk Assessment
Framework will be assessed and taken into account. This will be complemented with the results
framework and monitoring arrangements provided in Annex 3. The main outcome indicators
will be the reduction of travel time and transport costs on the Northern Corridor road traversing
Nairobi and creation of institutional and regulatory capacity in the urban transport sub-sector.
Baseline information is already available for some of the indicators. Other performance and
outcome indicators that will be closely monitored are related specifically to the institutional
reforms to be achieved in the urban transport sub-sector.
75. The Government has proposed to engage one of the accredited universities in Kenya with
adequate experience as the monitoring and evaluation (M&E) consultant under a contract with
MoR, but working in close collaboration with KeNHA, KURA, KRC and MoT. This
arrangement has worked well under NCTIP, with the University of Nairobi (UoN) as the M&E
consultant. In the process of collecting and analyzing data, the country has benefited enormously
by assigning this task to UoN. So far, 33 students have utilized the information for their
academic work, and graduated at post-graduate level, while another 26 students are in the
process of doing so. The task has built local M&E capacity and also strengthened the link
between academia and the road construction industry. Meanwhile, KeNHA, KURA, KRC, MoT
and MoR have M&E and Communications units in their organizational structures, that will
complement these efforts and work closely with the selected university.
76. The Communications Specialists from KeNHA, KURA, KRC, MoT and MoR in
conjunction with the Communications specialist on the Bank‘s task team, based in the country
office in Kenya, have developed a communications strategy, similar to the case for NCTIP and
KTSSP, which will be rolled out before the start of execution of works (details in Annex 5). The
communications teams have fielded a recognizance visit to the project sites, and have planned
subsequent visits to record interviews and initiate dialogue with potential beneficiaries. This is
particularly important for sub-component B (Support to KURA and KRC to Develop Mass
Rapid Transit Systems) as an engagement-feedback mechanism for regular dissemination of
information on the progress of these activities to the public.
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C. Sustainability
77. The GoK has set aside resources in carrying out preparatory work, including the
feasibility studies, environmental and social assessments and detailed engineering designs for the
road contracts. The activities of the project will be mainstreamed in the operations of the
implementing agencies and the project implementation team will comprise in-house staff. These
actions have reinforced Government‘s ownership of the project - hence ensuring sustainability.
Furthermore, the benefits of the project are likely to be sustained in light of the recent reforms in
the transport sector, which already are showing encouraging results, including clear ownership
and institutional arrangements in the road sub-sector; establishment of a regulator for the
construction industry and strengthening of the regulatory function of the engineering profession.
The establishment of the proposed NMTA will streamline further the provision of urban public
transport infrastructure and services, while creation of the RTSA will streamline the road safety
matters thereby creating sustainable capacity to address these challenges.
78. All the above factors contribute extensively to ensuring that the benefits of the project
will be sustained. Moreover, maintenance of the improved roads infrastructure under the project
is assured through the regular funding from the Road Maintenance Fund managed by the Kenya
Roads Board which has benefitted extensively under the Bank financed NCTIP and KTSSP in
strengthening its role and capacity.
V. KEY RISKS AND MITIGATION MEASURES
A. Risk Ratings Summary Table
Risk Rating
Stakeholder Risk High
Implementing Agency Risk
- Capacity Substantial
- Governance Substantial
Project Risk
- Design Moderate
- Social and Environmental Moderate
- Program and Donor Moderate
- Delivery Monitoring and Sustainability Moderate
Overall Implementation Risk High
B. Overall Risk Rating Explanation
79. The overall implementation risk is rated high because of the potential risks that include
the uncertainties regarding the possible changes in the institutional set up in the transport sector
and implementation arrangements arising from the execution of the newly adopted Constitution;
the forthcoming elections and the transition to a new Government accompanied with
24
reorganization of the institutional setting of the public sector thereafter; and likely resistance
from transporters and bus operators to the introduction of any new regulatory framework for
public transport, phasing out matatus and CCN required to cede its current responsibility of
traffic management and parking management to the proposed NMTA. These risks could slow
down the implementation of the project. The risk mitigation measures are explained in the
Overall Risk Assessment Framework (ORAF) in Annex 4.
VI. APPRAISAL SUMMARY
A. Economic and Financial Analyses
80. Detailed studies of the various road sections to be rehabilitated or improved under the
project are underway. The total length of the major roads to be constructed, namely, JKIA
Turnoff-Westlands-Rironi and associated service roads, Kisumu bypass and Meru bypasses,
amount to about 93 km of which some road sections have six lanes and include construction of
multi-lane fly-overs. Based on existing studies, the traffic levels range from about 1,700
vehicles per day (vpd) to over 8,000 vpd with one section (12 km) having nearly 80,000 vpd
along JKIA to Nairobi city centre. Most of the road sections are those previously earmarked for
improvement under the defunct NUTRP, which was dropped, and their economic justification is
sound, while the rest are sections of roads adjoining major towns, with comparatively high levels
of traffic. According to the previous economic feasibility studies done for each road section,
albeit at different times, the economic rates of return (ERR) ranged from about 17 to 65 percent
and the estimated net present value (NPV) at 12 percent discount rate was about US$80 million
for road works costing about US$200 million (details in Annex 6). Given that the economic
growth in the country has been in the range of 5 to 7 percent per annum in the last five years and
is expected to grow between 5 and 7 percent per annum in the future, the traffic volumes are
likely to grow at around 7 to 10 percent per annum.
B. Technical
81. The road design standards being applied under the project will conform to the latest
design practices. The standards and specifications compare well with international practice.
Where traffic levels are expected to exceed the generally-accepted capacity of the existing lanes,
the road sections would be widened (see details in Annex 6, Table 2). The BRT operational
designs and proposed PPP financing structure will take into consideration the lessons learned and
best practices from successful BRT projects in other major cities (e.g. Curitiba, Bogota and
Lima).
C. Financial Management
82. A financial management assessment of KeNHA, KURA, KRC, MoT and MoR, the
entities implementing the project, was conducted. MoT, MoR, KeNHA and KRC are currently
implementing the NCTIP, EATTFP, and the KTSSP with a total IDA contribution of US$960
million. There are no overdue audit reports. The financial management residual risk rating for
MoT, MoR, KeNHA, KURA is assessed as moderate whereas that of KRC is assessed as
substantial. Details on the Financial Management arrangements for this project are included in
Annex 3.
25
83. On the basis of the assessment, it is recommended that both KeNHA and KURA address
the system challenges experienced in generation of financial reports by customizing their
budgetary modules by moving from a manual to an automated budgetary control system by
March 31, 2013.
84. To ensure that funds are available during project implementation, the credit effectiveness
condition will require the GoK to deposit an initial amount of KES30 million of the GoK
counterpart funding into the project operating account for component A of the project and
thereafter to replenish the account on a quarterly basis throughout the project implementation
period. The other Financial Management actions to be taken during project implementation are
included in the Financial Management action plan shown in Annex 3.
85. The PITs will oversee the Designated and Project Accounts, verify invoices, and approve
payments. The PITs will also prepare all financial management reports, financial statements,
reimbursement requests and other relevant documentation as required by their respective
management and IDA. The PITs will ensure that the respective agencies‘ financial statements
are audited as required and that contracting, procurement, disbursement and financial
management is carried out and reported efficiently. Documentation supporting project-related
disbursement and financial transactions would be maintained by each PIT for inspection by IDA,
the GoK, and the Kenya National Audit Office (KENAO) (see Annex 3 for details).
86. Retroactive financing: A provision of up to US$5 million has been made to cover
eligible expenditures incurred on or after November 30, 2011 (i.e., during the 12-month period
before signing of the Credit, which is expected by the end of September 2012).
D. Procurement
87. A Procurement Risk Assessment has been completed. Procurement activities will be
carried out by the five implementing agencies, of which two are GoK ministries and three are
state-owned institutions, namely MoR, MoT, KeNHA, KURA, and KRC. KeNHA, KURA and
KRC are state-owned institutions. Each of the five implementing agencies has constituted a PIT,
which reports to the CEO of its respective agency. A PIT includes among other professional staff
a PIT leader and a procurement officer. With the exception of KURA, the other four agencies
are implementing three ongoing IDA-funded projects (NCTIP, EATTFP, and KTSSP) through
the same PITs. Because KURA is an offshoot of MoR, most of its technical staff and especially
members of the PIT of the proposed project are staff that have gained experience in project
implementation under the three ongoing projects before they were moved to the road agencies.
88. Being cognizant of the experience gained by the implementing agencies from the ongoing
projects, and deployment of the same PITs of the ongoing projects for the implementation of the
proposed project, the overall project risk for procurement is ―moderate‖.
89. A first General Procurement Notice (GPN) for the project was published in the
DgMarket website on May 3, 2012. The GPN will be updated annually for any outstanding
International Competitive Bidding (ICB) and large consultancy services contracts, as
appropriate. Specific Procurement Notices (SPN) for goods and works to be procured under ICB
and National Competitive Bidding (NCB) and for consultant services will be advertised in at
26
least one national newspaper of wide circulation and internationally for ICB contracts. Wherever
needed, training will be offered to enhance the skills of the PIT procurement staff. Procurement
plans for the first 18 months have been prepared (details in Annex 3) and will be updated at least
annually. In addition, a project implementation manual will be prepared by Credit effectiveness,
a draft of which has been submitted to the Bank and is under review.
90. Procurement will be carried out in accordance with the World Bank‘s Guidelines,
particularly, Guidelines: Procurement of Goods, Works, and Non-Consulting Services under
IBRD Loans and IDA Credits and Grants by World Bank Borrowers, dated January 2011; and
Guidelines: Selection and Employment of Consultants under IBRD Loans and IDA Credits and
Grants by World Bank Borrowers, dated January 2011. Kenya‘s public procurement law, the
Public Procurement and Disposal Act of 2005 (PPDA), that governs purchase of works, goods
and services using public resources by central Government entities, local authorities, state
corporations, education institutions, and other Government institutions, will also be taken into
account. It should be noted that some provisions of PPDA are not fully consistent with the
World Bank procurement guidelines and Consultants Guidelines, and therefore these provisions
of PPDA will not be applied for the implementation of this project (details in Annex 3). The
Anti-Corruption Guidelines, namely, the ―Guidelines on Preventing and Combating Fraud and
Corruption in Projects Financed by IBRD Loans and IDA Credits and Grants‖, dated October
15, 2006 and revised in January 2011, shall apply.
91. Procurement methods to be applied to the purchase of all project goods, services and
works will be specified in the Procurement Plan, including the circumstances under which the
methods may be used. The methods for works and goods will include ICB, Limited International
Bidding (LIB), NCB, Shopping, and Direct Contracting. In case of consulting services, the
methods will include Quality and Cost Based Selection (QCBS), selection under Fixed Budget,
Consultants Qualifications, Least Cost Selection, Single Source Selection, and Selection of
Individual Consultants, consistent with procedures provided in paragraphs 5.2 and 5.3 of the
Consultant Guidelines. World Bank review of procurement decisions will be provided in the Plan
for those contracts that shall be subject to Prior Review.
92. Training: Each of the implementing agencies will prepare and endorse their respective
annual training program for financing under the project and submit it to the Bank for review and
clearance. The program will identify, inter alia: (a) the training envisaged; (b) the personnel to
be trained; (c) the selection methods of institutions or individuals conducting such training; (d)
the institutions conducting the training (if already selected); (e) the duration of the proposed
training; and (f) the cost estimate of the training. Reports by each trainee upon completion of
training would be mandatory.
E. Social (including safeguards)
93. Social and environmental benefits. In addition to social and environmental impacts
requiring mitigation, the project will generate significant social and environmental benefits. The
social benefits will accrue from opportunities for short-term employment during construction,
but there will also be long-term benefits from increases in road safety and time saved. The travel
time along road sections contained in the project is expected to fall by 30 percent and vehicle
27
operating costs are expected to be reduced by 25 percent with the proposed improvements; and
the provision of road-side amenities, including bicycle tracks, pedestrian crossings, service roads
along the selected road sections, and improvement of junctions will enhance road safety. The
details on social aspects of the project are in Annex 7.
94. Road safety issues are a major concern in Kenya that claims a total of nearly 3,000 lives
annually. This project will complement the efforts under NCTIP and KTSSP, where a National
Road Safety program has been developed and approved by the GoK. Under the project, attention
will be given to increasing awareness of road safety through information provision and education
of adults as well as children along the selected road corridors. The design of the project will
include widening of the existing road in critical places to allow for bicycle paths and pedestrian
sidewalks to enhance safety in selected areas.
95. The reduction in traffic congestion along the JKIA – Nyayo Stadium route will reduce the
current practice of motorists taking shortcuts along residential roads adjacent to the Nairobi
National Park, which increases air pollution in the Park and causes distress to wildlife. Smooth
traffic flow also has strong greenhouse gas reduction benefits and reduces local air pollution.
Nitrogen oxide4, carbon dioxide, and carbon monoxide emissions are likely to be reduced by a
factor of two or three due to the reduction of repetitive stop-starts and the duration of idling.
F. Environment (including safeguards)
96. The project‘s anticipated social and environmental impacts have triggered Bank
Operational Policy OP 4.01 (Environmental Assessment), as well as OPs 4.12 (Involuntary
Resettlement) and 4.11 (Physical Cultural Resources). The environment category of the project
is B – Partial Assessment – as the proposed activities, which for the most part involve
rehabilitation/expansion of existing roads within the right of way (in addition to some relatively
short bypasses that will not traverse natural habitats), will have moderate and reversible impacts.
Overpasses will be constructed largely within the existing right of way. Detailed descriptions of
environmental and social compliance measures are provided in Annex 7.
Safeguard Policies Triggered by the Project Yes No
Environmental Assessment (OP/BP 4.01) X Natural Habitats (OP/BP 4.04) X Pest Management (OP 4.09) X Indigenous Peoples (OP/BP 4.10) X Physical Cultural Resources (OP/BP 4.11) X Involuntary Resettlement (OP/BP 4.12) X Forests (OP/BP 4.36) X Safety of Dams (OP/BP 4.37) X Projects on International Waterways (OP/BP 7.50) X Projects in Disputed Areas (OP/BP 7.60) X
4 Nitrogen oxides (NOx) act as indirect greenhouse gases by producing the tropospheric greenhouse gas 'ozone' via
photochemical reactions in the atmosphere. Carbon dioxide is a primary greenhouse gas. Chronic exposure to
carbon monoxide is associated with increased risk for adverse cardiopulmonary events.
28
Environmental Characteristics of Project Areas
97. Component A (a): JKIA Turnoff-Westlands-Rironi Road Improvement. The project area is
mainly built up, and so there will be minimal or no animal species that will be displaced.
Although a 2 km section of the road expansion from JKIA to Nyayo Stadium does run parallel to
the Nairobi National Park, there is a buffer provided by an industrial estate between the road and
the boundaries of the Park. Therefore, the road works will not impose additional stress on
wildlife, though construction waste should be disposed off well outside the vicinity of the
National Park.
98. Component A (b): Kisumu bypass. The escarpment occurs in the form of rounded shapes
on the east side of the Kisumu-Kakamega (A1) Road, at which point they taper into piedmont
plains that form a gentle Kanyakwar valley that meets the bulk-hill on which Kisumu city is
built. The hills do not have a gazetted forest except at Scarp 9 near Jans Senior Academy, where
a small area is set aside for arboreal practice. Bush and shrubs occupy the scarps along which
the bypass road corridor is planned.
99. Component B1 (f): The Meru bypass road generally traverses through rolling topography
with a general altitude of 1,700 meters at the Western bypass and 1,500 meters at the Eastern
bypass. Both bypasses cross River Kathita and several small perennial streams. The river and the
streams originate from Mount Kenya and intersect the project road, flowing eastwards as
tributaries of the River Tana. The project is in the vicinity of the Imenti Forest, which is one of
many small remnant patches of the forest in which fragmented elephant herds shelter, threatened
by a burgeoning human population of agriculturalists who are not sympathetic to their presence.
The Imenti Forest lies east of Mount Kenya between the towns of Embu and Meru and today a
small herd of elephants (probably no more than about 50) shelters within, surrounded by human
settlement and isolated from their Mount Kenya brethren. Illegal logging within the forest itself
is inflicting further pressure on this small band of surviving elephants, whose future is
questionable unless safe passage for them can be arranged by way of a corridor so that they can
reach the Mount Kenya forests. The proposed bypass does not traverse the forest but follows the
edge of the forest for about 2 km around Gitoro area before joining B6 road - hence not affecting
the forests, or coming close to the wildlife sensitive sites. The Kenya Forestry Service has an
electric fence which prevents access to the Imenti Forest.
100. Environmental Impacts. Potential environmental impacts may include soil erosion and
disturbance of water flows, water pollution, traffic disruption, noise, gaseous and dust pollution
and temporary disturbance of flora and fauna (mainly during the construction phase). In the case
of the improvement of the Northern Corridor road (namely JKIA Turnoff-Westlands-Rironi road
section through Nairobi and associated service roads and major junctions) some mature trees
(though not indigenous species) will be lost as a result of road widening. The magnitude of tree
cutting in these urban areas is not sufficient to necessitate the preparation of a Forest
Management Plan, or to trigger the Bank‘s Operational Policy on Forests, OP 4.36.
Nevertheless, it is important to undertake replacement tree planting liaising with Kenya Forestry
Service and local municipality authorities with responsibility for maintaining roadside verges
and vegetation.
29
101. Mitigation measures. KeNHA will liaise with the Kenya Forestry Service, CCN and
Kisumu Municipality on replacement tree-planting activities. Since the expected negative
impacts will relate to the construction phase of the project, mitigation and support measures will
be incorporated in the relevant clauses in the contract documents for the road sections. Such
clauses include, among others, provisions for appropriate measures for storage, handling,
transportation and disposal of all waste material; provision of adequate sanitary facilities;
rehabilitation and surface restoration of borrow pits; basic training in construction health and
mitigation measures against spread of Human Immunodeficiency Virus/Acquired Immune
Deficiency Syndrome (HIV/AIDS); and sustainable seeding and tree growing to restore
vegetation to its original condition; and extraction of water. A matrix of environmental impacts
and mitigation measures is provided in Annex 7.
102. In the case of road rehabilitation, OP 4.11 (Physical Cultural Resources) is also being
triggered. Construction will take place in proximity to areas of cultural, historical, and religious
significance (the museum at Provincial Commissioner‘s House, Uhuru Park, and the Nairobi
Synagogue). Guidelines for ―chance finds‖ procedure will be integrated into the contracts for
construction. These include development of a cultural property management plan if physical
cultural resources are found or adversely affected (although this is not expected to be the case,
and consultations have already been held with stakeholders and their concerns about the
construction process have been noted and addressed).
103. Disclosure of Safeguards Documents. All the Environmental and Social Impact
Assessments (ESIAs) and Resettlement Action Plans (RAPs), including an Environmental Social
Management Plan (ESMP) for roads sections to be rehabilitated or constructed, have been
cleared by the World Bank and were disclosed in the Bank‘s InfoShop and in-country (details in
Annex 7, Table 10). The draft terms of reference for the ESIAs for development of the BRT
corridor and the commuter rail network were also prepared and disclosed in the Bank‘s InfoShop
and in-country on KURA‘s and KRC‘s websites. The implementing agencies have staff with
adequate experience and qualifications to manage environmental and social matters associated
with their respective infrastructure expansion and rehabilitation components. All construction
projects will adhere to the rules and regulations of National Environmental Management
Authority, and all necessary permits will be obtained prior to construction.
104. Borrower’s Capacity to Implement Safeguards. KeNHA has substantial experience in
the preparation and implementation of ESMPs and RAPs in compliance with previous Bank
standards, conducted under earlier Bank-financed projects, including NCTIP, KTSSP and
EATTFP. KeNHA has qualified Social Specialists with experience in implementing OP 4.12.
The Environmental Specialist has undertaken preparation and monitoring of ESIAs for Bank-
financed projects at both KeNHA and previously at the Kenya Power and Light Company.
Although KURA has less in-house experience, they have recently hired an Environmental
Specialist, and the ESIA submitted and cleared for the Meru bypass was of a high standard.
105. Stakeholder consultations. Stakeholder consultations were conducted for Project
Affected Persons (PAPs) as well as local businesses, farms, and public institutions (schools, care
homes, etc.) along the route. Dates of consultations are provided in Annex 7, Table 7. Key
concerns were: dust pollution from construction; construction waste disposal; loss of customers
30
due to limited accessibility to shops, petrol stations, and hotels during construction; limited
accessibility to a religious institution (Nairobi Synagogue); road safety during construction; and
adequate compensation for land acquisition. Monitoring will be undertaken to ensure proper
environmental impact mitigation measures are in place (frequent watering of roads; disposal of
waste away from residential and market areas; adequate safety signs and safe crossing points;
provision of access points to businesses, institutions, and houses of worship). Compensation
issues will be addressed through the implementation of the RAPs.
31
Annex 1: Results Framework and Monitoring
KENYA: National Urban Transport Improvement Project
Results Framework
Project Development Objectives (PDO): The Project Development Objectives are to: (a) improve the efficiency of road transport along the Northern Corridor; (b) improve the institutional capacity and
arrangements in the urban transport sub-sector; and (c) promote the private sector participation in the operation, financing and management of transport systems.
PDO Level Results Indicators
Co
re
Unit of Measure Baseline
2012
Cumulative Target Values
Frequency
Data Source/
Methodology
Responsibility
for Data
Collection
Description
(indicator
definition
etc.) 2013 2014 2015 2016 2017 2018
Indicator One: Reduction in
average travel time from
Junction Jomo Kenyatta
International Airport (JKIA)-
Rironi road.
Time in hours 3 3 3 2.5 2.4 2.2 2.1 Quarterly Quarterly and
Annual
progress
reports/Field
survey
Supervision
Consultant/
M&E
consultant
Average
travel time
by saloon car
during
morning and
evening rush
hour.
Indicator Two: Reduction in
vehicle operating costs on
Junction JKIA-Rironi road.
Cost per km (US$)
for a heavy truck
1.5 1.5 1.5 1.4 1.3 1.2 1.1 Quarterly Quarterly and
Annual
progress
reports/Field
survey
Supervision
Consultant/
M&E
consultant
As
determined
using the
HDM-4
model.
Indicator Three: Direct
beneficiaries:
Road users per day (of which %
female)
Number in thousands
(% female)
300
(40%)
300
(40%)
300
(40%)
300
(40%)
350
(40%)
380
(40%)
380
(40%)
Quarterly Quarterly and
Annual
progress
reports/Field
survey
Supervision
Consultant/
M&E
consultant
Based on the
ADT, type
of vehicles
and average
occupancy
rate.
Indicator Four: Improved
institutional capacity in the
urban transport sub-sector
1) Nairobi Metropolitan
Transport Authority
(NMTA) established and
functional;
2) National Road Transport
and Safety Authority
(RTSA) established and
Yes/No
1) No
2) No
3) No
No
No
No
No
No
No
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Quarterly Quarterly
progress
reports
MoT/
M&E
consultant
32
Project Development Objectives (PDO): The Project Development Objectives are to: (a) improve the efficiency of road transport along the Northern Corridor; (b) improve the institutional capacity and
arrangements in the urban transport sub-sector; and (c) promote the private sector participation in the operation, financing and management of transport systems.
PDO Level Results Indicators
Co
re
Unit of Measure Baseline
2012
Cumulative Target Values
Frequency
Data Source/
Methodology
Responsibility
for Data
Collection
Description
(indicator
definition
etc.) 2013 2014 2015 2016 2017 2018
functional;
3) Urban public transport rules
and regulations developed
and in use.
Indicator Five: PPP promotion
and opportunities in the
transport sector developed.
1) Offer one Bus Rapid Transit
(BRT) corridor for Public
Private Partnerships (PPP);
2) Offer one commuter rail line
for PPP.
3) Institutional setup within
KeNHA (Kenya National
Highways Authority) for the
promotion of PPP in
financing and management of
road infrastructure and
services developed and
adopted.
Yes/No
1) No
2) No
3) No
No
No
No
No
No
No
No
No
No
Yes
No
No
Yes
Yes
Yes
Yes
Yes
Yes
Quarterly
Quarterly and
Annual
progress
reports/Field
survey
MoR/MoT/
M&E
consultant
Indicator Six: Number of road
crashes reduced along Junction
JKIA-Rironi Road*
Percentage reduction
(%)
To be
collected
0 0 10 12 14 15 Annually KeNHA
progress
report
M&E
Consultant
INTERMEDIATE RESULTS
Intermediate Result (Component A): Support to KeNHA to Upgrade the Urban Road Transport Infrastructure
Intermediate Result indicator
One: Length of roads
rehabilitated (non-rural)
Km 0.0 0.0 0.0 18.0 80.0 100.0 118.0 Annually KeNHA/
Kenya Urban
Roads
Authority
(KURA)
progress
M&E
consultant
33
Project Development Objectives (PDO): The Project Development Objectives are to: (a) improve the efficiency of road transport along the Northern Corridor; (b) improve the institutional capacity and
arrangements in the urban transport sub-sector; and (c) promote the private sector participation in the operation, financing and management of transport systems.
PDO Level Results Indicators
Co
re
Unit of Measure Baseline
2012
Cumulative Target Values
Frequency
Data Source/
Methodology
Responsibility
for Data
Collection
Description
(indicator
definition
etc.) 2013 2014 2015 2016 2017 2018
report
Intermediate Result indicator
Two: Length of roads
constructed (non-rural)
Km 0.0 0.0 0.0 5.0 20.0 30.0 38.0 Annually KeNHA/
KURA
progress
report
M&E
consultant
Intermediate Result indicator
Three: Road length in good and
fair condition as a percentage of
the total classified network in
the project area [non-rural,
Northern Corridor (Mombasa –
Malaba/Busia) 930 km
Cumulative
Percentage (%)
60.0
60.0
65.0
70.0
75.0
80.0
80.0
Annually KeNHA/
KURA
progress
report
M&E
consultant
Intermediate Result (Component B): Support to KURA and KRC to Develop Mass Rapid Transit Corridors
Intermediate Result indicator
One: Draft Bill for NMTA
presented to parliament, and
rules and regulation for urban
public transport developed
Yes/No No Yes Annually KeNHA/
KURA
progress
report
M&E
consultant
Intermediate Result (Component C): Institutional Strengthening and Capacity Building
Intermediate Result indicator
One: Draft legal, institutional
and regulatory framework for
PPP in transport developed
Yes/No No No Yes Annually KeNHA/
KURA
progress
report
M&E
consultant
Intermediate Result indicator
Two: Feasibility and
engineering designs studies
completed to acceptable
standards
Number
(a) BRT
(b) Commuter rail
line
No
No
No
No
No
No
No
No
1
2
1
2
1
2
Annually KeNHA/
(KURA)
Progress
report
M&E
consultant
*Baseline data will be collected by the M&E consultant by March 31, 2013
34
Annex 2: Detailed Project Description
KENYA: National Urban Transport Improvement Project (NUTRIP)
1. The Government of Kenya (GoK) has developed a long-term investment plan for
the road sub-sector, the Road Sector Investment Plan (RSIP). The plan includes identified
priority interventions which are needed to support the achievement of Vision 2030. One
of the priority areas is to address the high traffic congestion that is having serious
economic consequences, including losses in Gross Domestic Product (GDP), and
contributing to increases in the cost of doing business in the country. The priority
interventions include improving existing road corridors; constructing critical
complementary missing road links; and developing and expanding the commuter rail and
Bus Rapid Transit (BRT) systems to improve urban public transport.
Urban Infrastructure and Services
2. Urbanization in Kenya has been growing rapidly since independence, but without
being met with commensurate urban infrastructure and services. In major cities,
availability and efficiency of urban transport is an important factor in development of
social and economic activities. Currently, urban transport is facing challenges of fast
rates of population and spatial growth, a low and unstable revenue base, low and uneven
income levels among the inhabitants and high rate of growth in vehicle ownership among
a small but significant minority, while the majority remains captive to poorly provided
public transport and Non- Motorized Transport (NMT). Motorization in Kenya increased
to about 1.62 million vehicles in 2011, compared to 591,000 in 2000 (Table 1). Private
cars represent over 40 percent of this growth, and private vehicles are predominantly used
in urban areas. In response to this rapid growth in motor vehicles, the Government‘s
Road Sector Investment Plan (RSIP) 2010-2024 allocates significant resources towards
urban road infrastructure expansion and improvement in an attempt to build a way out of
frequently occurring traffic gridlocks.
Table 1: Number of Registered Vehicles by Type (in ‘000s)
Vehicle type 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
Motor cars 245 255 270 286 308 329 373 411 450 500 553 596
Vans, picks-
ups 159 163 167 173 180 184 195 203 210 220 227 234
Lorries, Truck
and heavy
vans 58 59 60 62 64 66 70 75 81 91 96 102
Buses and
mini-buses 39 43 47 50 56 60 50 56 62 85 90 92
Motor and
auto-cycles 45 46 47 49 54 57 63 79 130 253 370 510
Trailers and
tractors 13 14 14 15 16 17 40 42 43 27 31 34
Other motor
vehicles 32 32 33 33 34 35 28 31 33 45 50 55
Total 591 611 638 669 711 750 819 897 1,009 1,221 1,418 1,623
Source: Kenya National Bureau of Statistics, Statistical Abstracts, Various (for 2000-2009 figures) and Kenya
Economic Survey, 2012 (for 2010-2011 figures)
35
3. The most important road-based public transport services are provided by
privately-owned overcrowded, over-aged and unreliable buses and matatus (mini buses)
that operate in a virtually „laissez-faire‟ environment. These unregulated services form
the backbone of the Nairobi public transport system, with matatus carrying about 33
percent of commuter traffic while public buses cater for only about 3 percent. There are
in Nairobi in excess of 16,000 matatus and larger buses, many of which are individually
owned and operated (mostly with hired drivers). This largely unregulated public transport
environment has led to an unsustainable cut-throat competition that compromises vehicle
and passenger safety and comfort, environmental conditions, as well as reliability of
services. The use of large numbers of low-capacity matatus along the main transport
corridors has further resulted in a daily battle for scarce road space. This inefficient use
of road space is further aggravated by a lack of traffic management; interventions are
piecemeal and poorly coordinated between stakeholder agencies.
Traffic Management Interventions for Nairobi
4. The convergence of road networks in the Central Business District (CBD) of
Nairobi; poor road networks; the increasing number of vehicles; poor timing of traffic
signals; and attitudes of road users create overwhelming traffic jams. Consequently, the
traffic demand frequently exceeds the capacity of roads to handle the traffic. Low-cost
traffic management tools are required to improve the existing roadway capacity. The City
of Nairobi has some form of traffic management in place. To date, the emphasis has been
on traffic signalized junctions, junction improvements, and one-way traffic lanes, which
provide benefits to the motorized vehicular traffic.
5. Traffic management studies and activities: The institutions responsible for traffic
management in the City of Nairobi have inadequate capacity in planning and executing
measures (such as installing traffic lights, cabling, and a control room) to deal with
congestion. In this regard, a consultancy to assist KURA is intended to explore the
prospect of introducing short- to medium-term and long-term traffic management
interventions to facilitate the smooth flow of traffic within the extended CBD of Nairobi.
Some short-term interventions proposed include minor junction improvements,
rehabilitation of existing traffic lights, slip roads construction, installing a control room,
cabling and associated works.
6. Improvement of traffic management systems: Enhancement of traffic
management measures through the acquisition of goods and services such as the control
centre, traffic management Information Communication Technology (ICT) solutions and
traffic signalization are required urgently. A study on traffic management for the
extended CBD of Nairobi is necessary to determine the scope of implementation of the
many types of traffic management interventions required (e.g., junction improvements,
one-way operations, traffic signal coordination, and ICT integration in various aspects of
traffic management).
36
Commuter Rail
7. Commuter rail is providing peak-hour passenger services in the morning and
evening since 1992, carrying about one percent of passenger traffic. However, the
system is loss-making and faced with enormous challenges and unclear management
structures and poorly defined service provision expectations, resulting in serious
infrastructure maintenance backlogs and over-aged and dilapidated rolling stock.
Non-Motorized Transport
8. The Mass Rapid Transit Study estimates that 47 percent of Nairobi residents walk
to their places of work while only about four percent use bicycles. Bicycle traffic,
popularly known as ―Boda Boda‖, is used more in the smaller towns and in rural areas,
where the terrain permits, because without appropriate bicycle infrastructure, it is
relatively safer to use it in areas with low motorized traffic volumes. In addition to poor
and deteriorating road conditions in the urban centers, there is lack of other road
infrastructural facilities like footpaths for pedestrians to make walking safer, separate
lanes for cyclists or other immediate means of transport, or fly-overs and bypasses to
improve traffic flows. In recent years, motorcycle taxis have gained popularity on non-
arterial roads situated away from the city centre.
Drainage
9. Major towns experience serious flooding almost on an annual basis during the
long rains, and at times even during the short rains. This is mainly because of the
blockage during long dry spells coupled with inadequate maintenance and low capacity
of such drains. There is need therefore to provide for adequate storm water drainage
under all the road works components as well as stand-alone components for trunk storm
water drainage. This will alleviate the problems encountered during the periods when
roads get flooded for long spells of time, causing congestion and mobility problems for
vulnerable groups including pedestrians, children, women and mobility-constrained road
users.
10. When flooding occurs on urban roads, accidents are frequent and sometimes
fatalities result from such episodes, which could be prevented with a working drainage
system. The use of open drains in built-up areas, which is one of the main causes of storm
water drainage-related accidents, should be addressed. Where closed drains are used,
such drains should be so designed as to be able to carry the flow for the entire design life
of the road.
11. Some of the reasons for drainage problems include: non-provision of adequate
discharge points, encroachment by formal and informal businesses operating over open
drains and thus causing blockage and inadequate way leaves for storm water drains.
Separation of storm water and foul water sewers would also be desirable where they have
been connected.
37
12. Trunk storm water drainage has been recognized as an important feature in the 15
year (2010-2024) RSIP and is considered in the short-, medium- as well as long-term
program. All the components with an activity on road construction, rehabilitation or
improvement under the project will pay attention to drainage.
Urban Transport Development
13. Given the serious congestion in Nairobi and the need to address it urgently, the
Government offered a section of the Northern Corridor road adjoining Nairobi for tolling.
The Bank financed the advisory services under the Northern Corridor Transport
Improvement Project (NCTIP). The process began in 2003 and it was not until 2007
when the bids were invited, under the defunct Nairobi Urban Toll Road Project
(NUTRP). This followed the outcome and recommendations of feasibility studies
conducted by internationally-recruited consultants. The scope of works consisted of
improving six road sections, including Uhuru Highway (total of 77 km), and constructing
a bypass (29 km) as an alternative to a tolled urban stretch of 25 km. The scope of works
comprised the rehabilitation of the existing multi-lane dual carriageways, construction of
an elevated four lane highway over Uhuru Highway, and construction of a new two-lane
bypass which would be upgraded to a four-lane dual carriageway over time. While three
firms were pre-qualified, only one consortium submitted a bid. The sponsors had
requested the World Bank Group, among others, for partial financing of the capital
investment and provision of guarantees against political risks. The World Bank Group
could not support the consortium after it emerged that prevailing circumstances had
changed significantly and that executing the project as designed was no longer tenable.
As a result, the Government decided to terminate the process of concessioning and
thereafter approached the World Bank for assistance to finance some of the critical road
infrastructure investments that were envisaged under the concession.
14. The circumstances surrounding the planned concession investments have changed
significantly, given the long period (nine years) the whole process took before its ultimate
termination. For instance, the traffic level has continued to increase; some sections of the
roads under NUTRP have been constructed with alternative sources of finance, including
from China; new road corridors and missing links have either been constructed or are
nearing completion with financial support from the European Union (EU), Japan
International Cooperation Agency (JICA) and China, such as the eastern and northern
bypasses; and new commercial and industrial development areas have come up which
require new configurations of access.
15. Accordingly, it became prudent to re-assess the impact of all these changes,
including updating the economic analysis to establish whether there are better alternatives
to constructing an elevated highway along the section of the Northern Corridor over
Uhuru Highway from the Nyayo Stadium roundabout to the Westlands roundabout
(approximately 7 km), including expansion and rehabilitation of the existing road
sections, and whether construction of an overpass (or underpass) at the critical
roundabouts is still the most appropriate option, along with investing in the balance of
interventions identified earlier to address the congestion problem along the main road
38
artery through Nairobi. This will be verified by undertaking a traffic study of Nairobi
and its environs, taking into account all the other investments currently ongoing or
planned on the Nairobi urban road network.
16. While a reliable accident data collection and analysis system does not exist, the
number of road accidents, injuries and fatalities in Kenya is high and increasing. Recent
data does not exist, but in 2001, Kenya counted 44 fatalities per 10,000 vehicles,
compared to 1.4 in Great Britain, while West African countries at a similar stage of
development were at the 25 per 10,000 vehicles range.
17. Given the complexity and time that is required to prepare for the improvement of
urban public transport systems, the National Urban Transport Improvement Project
(NUTRIP) will initially focus on improvement of transport infrastructure that is critically
a bottleneck and at the same time finance the preparatory work for the provision of
efficient public transport services, focusing on mass transit systems that can provide
affordable mobility and accessibility to the majority of the urban low income population.
NUTRIP will comprise the following components, with the details shown in Table 2.
18. Component A: Support to KeNHA to Upgrade the Urban Road Transport
Infrastructure (total cost US$311.15 million, of which IDA US$223.26 million). The
selected road sections are among the top priorities in the RSIP and were part of the
defunct NUTRP. This component will involve:
(a) Expansion and upgrading of the Northern Corridor road section through Nairobi
from Jomo Kenyatta International Airport (JKIA) turnoff to Rironi and the
associated service roads and access roads, all through provision of goods, works
and services.
(b) Construction of the Kisumu Northern Bypass road.
(c) Construction and rehabilitation of non-motorized transport facilities, including
foot paths, cycle tracks, pedestrian bridges and underpasses.
(d) Carrying out feasibility and detailed engineering design studies of roads
adjoining major towns and studies for improvement of traffic flows, through
provision of technical advisory services.
(e) Strengthening the capacity of KeNHA by: (i) supplying and installing a
management information system; (ii) developing a safeguards framework for
the road sector; (iii) carrying out an option study on private sector participation
in managing and financing road investments; (iv) implementing the
recommendation of the option study and preparing the requisite bidding
documents; and (v) improving its capacity for contract management, monitoring
and evaluation, through training and provision of technical advisory services.
39
(f) Strengthening the capacity of the External Resources Department and the State
Law Office to support effective management of the Project, all through training
and provision of technical advisory services.
(g) Supervision of road works constructed under Component A of the Project and
provision of technical advisory services.
(h) Establishment of a program to address Human Immunodeficiency Virus/Acquired Immune Deficiency Syndrome (HIV/AIDS) in all the roads
contracts, all through provision of goods and services.5
19. Component B: Support to KURA and Kenya Railways Corporation (KRC)
to Develop Selected Mass Transit Corridors (total cost US$80.46 million, of which
US$59.70 million IDA). The activities under this component of the project will comprise
carrying out feasibility studies and detailed engineering designs and preparation of
bidding and contract documents for works and associated facilities as well as selection of
private sector operators to provide large capacity buses for a BRT system and rolling
stock for a commuter rail system. The details are as follows:
(a) Bus Rapid Transit (BRT) Systems
20. BRT systems involve comparatively low construction costs, and so they are
springing up all over the world, including the USA and Europe. Successful introduction
of BRT systems requires strong political will and a clear and enforceable legal and
regulatory framework to deal with the vested interests, indiscipline, and disregard to
safety often manifested in the provision of transport services. In this context, the
identification of a strong leader or champion who can overcome resistance and reconcile
various interests is very important (e.g., Mayor in Curitiba or Mayor in Bogota) is
critical. Furthermore, implementing agencies must design comprehensive consultative
processes with all urban (transport) stakeholders, disseminating empirical information
that can educate the public and other key stakeholders on the potential benefits and cost
effectiveness which mass transit systems such as BRTs offer. Sufficient time is required
for dialogue and to reach consensus, and to prepare adequately the identified
interventions before implementation.
Main Characteristics of the Proposed BRT system in Nairobi
21. Feeder routes: The general concept for the proposed Nairobi BRT system is
anchored in a trunk-feeder system, similar to the successful BRT systems in Curitiba,
Bogota and Quito. High-capacity buses will provide services on segregated bus-lanes in
the median of trunk corridors, complemented by feeder buses (which can be normal buses
or matatus) transferring passengers at terminals or other designated stops. Successful
identification and integration into the BRT system of feeder bus routes requires a
meaningful consultation process with bus and matatu owners/operators that must be
initiated at the early stages of BRT system design.
5 The HIV/AIDs program is for all road contracts under Component A and Sub-component B1 in the
project.
40
22. Main design features: Incorporating lessons learned and best practices from
BRT systems in other countries, the Nairobi BRT will include the following criteria,
among others:
Fully segregated and exclusive BRT lanes, predominantly in the median of major
transport corridors.
Predominant use of high-capacity buses with low green house gases emissions.
System design capacity of a minimum of 20,000 passengers per hour per direction
(which can be expanded by adding bus overtaking lanes and upgraded system
management information).
High performance board/alight specifications for buses.
Access to station platforms only with valid fare-card.
Stations with central platforms and at-level boarding of buses, thus reducing
stopping time and increasing access comfort.
Pre-board fare collection.
Average speeds between 20-40 km/h
Overtaking lanes at stops and stations, allowing express services.
Bus lane features that restrict vehicle breakdown delays to a minimum.
23. Proposed BRT corridors: The MRTS has identified nine BRT corridors which,
if developed, will serve the most densely populated and low income parts of the larger
Nairobi. The eastern part of Nairobi is one such area. The main corridors identified to
serve this area include Jogoo road, Outering road, Juja road and Thika road. These
corridors form a network. For instance, the Jogoo road corridor (traversing Kaloleni,
Umoja and Kayole) with a length of about 21 km has the densest traffic and passenger
demand in Nairobi, with a forecast travel demand of 424,680 persons in 2030; and it is
connected to the Juja Road corridor, Outering and Thika corridors in Nairobi. The other
key corridors include Mombasa road, that would partly serve Jomo Kenyatta
International Airport (JKIA) and the southern part of Nairobi, the key ‗growth pole‘ for
greater Nairobi.
24. The BRT corridors that will be considered under this project include Juja road
and Mombasa-Uhuru Highway-Waiyaki Way road segment. Since the expansion works
on Mombasa Road-Uhuru Highway-Waiyaki Way will be financed under the project, it is
prudent to incorporate the BRT system in the designs at this stage rather than later.
Meanwhile, most of the traffic on Juja road joins Jogoo road, Thika Highway, and Uhuru
Highway-Waiyaki Way, and it is logical that this network is developed simultaneously
for integration of the system. African Development Bank (AfDB) will finance the designs
for Jogoo road, while the EU, Agence Francaise de Developpement (AFD) and JICA
have expressed interest in participation under parallel financing.
25. The design of the proposed BRT corridors will be based on the concept of a fully
separated BRT dual carriageway to be located in the median of the existing roadway,
with overtaking lanes at stations and stops. Passenger facilities will include an inter-
modal terminal at Central Railway Station, an intra-modal BRT/feeder terminal, and a
BRT bus depot and workshop with refueling facilities for which the location(s) will be
41
determined at detailed engineering stage. On the operational side, the BRT system will be
designed as a closed system, using high-capacity articulated buses, and prepaid access
only (via prepayment at terminals, stations and stops).
26. The geometric design of the first BRT corridors described above will provide
segregated bus lanes, NMT facilities, and improvement to adjacent traffic lanes to
enhance the BRT image. Because of differences in right-of-way at various sections,
geometric designs and features may differ. The designs will provide adequate drainage
facilities to prevent environmental degradation through erosion. To maximize
uninterrupted operation along the BRT corridor, in particular at intersections, the
engineering designs will optimize traffic flows along the corridor
27. Along the BRT corridor, new stops will be constructed at 500 to 600 meter
intervals, featuring raised platforms to allow bus entry/alighting at level and to reduce
stopping time for boarding/alighting. Terminals will be constructed at the endpoints of
the BRT corridors and at locations where passenger demand and/or inter-modal transfers
require additional services. Tickets will be purchased upon entering the stops/stations and
the stops/stations will protect passengers from weather influences (sun, rain) by means of
a canopy. Pedestrian access to terminals, stations and stops will be facilitated via secured
at-level crossings or footbridges with due attention to the needs of mobility constrained
persons (handicapped, elderly) and children. Pedestrian walkways at station access routes
will also be improved. The nature and scope of pedestrian (access) facilities and
walkways will be determined in the detailed designs.
28. NUTRIP will support the preparation of the first comprehensive BRT route and
will involve carrying out feasibility and detailed (engineering) design and studies,
including the associated Environmental and Social Impact Assessment (ESIAs), on
Mombasa/Waiyaki Way and Juja roads in Nairobi. It will also support the preparation of
draft contracts and bid packages for the BRT operator(s), the fare collector and the funds
manager, including provision of the specifications for high-capacity (articulated) buses
and fare collection equipment concurrently.
29. Regulatory Framework for a BRT system: NUTRIP will support the
identification of regulatory reforms that are necessary to structure and rationalize the
provision of public transport services. The modalities of conducting the BRT engineering
and operational design studies will be based on the most beneficial approach to the
country, taking into account the existing capacity and expertise to coordinate the
concurrent preparation of the various inter-linked activities required to design a BRT
system. For instance, by opting for an all-inclusive multi-disciplinary study to be
conducted by a consortium of international and local firms that combine all required BRT
expertise, managerial skills to coordinate all activities into a coherent and consistent BRT
system design will largely rest with the consortium. The assignment could cover: (i)
preparation of a roadmap for public transport development as the foundation for a
comprehensive BRT system; (ii) passenger and revenue forecasting; (iii) detailed
engineering and operational designs; (iv) BRT system management and delivery
planning; (v) financial and economic appraisal; (vi) environmental/social impact
42
assessments; and (vii) preparation of bid documents for civil works and operational
component, which will include contracts for BRT services such as supply and operation,
fare collector, fund manager, and technical specifications for fare collection system.
30. Planning for future BRT infrastructure must be anchored in the transport master
plan for Nairobi. Preparation of such a plan will be essential. The plan will provide the
basis for all planned and future transport services and infrastructure activities. More
specifically, new transport services and all designs for construction/rehabilitation of
transport infrastructure must incorporate compatibility with (future) transport components
included in the Master plan (e.g. extension of BRT lanes, new commuter rail services,
development of pedestrian and bicycle routes, etc). The Ministry of Nairobi Metropolitan
has commissioned a traffic management study and it is recommended that KURA takes
stock of the scope of this study. Contingent upon KURA‘s findings, further support for
strengthening traffic management in Nairobi may be defined, possibly including traffic
modeling within the context of BRT operations to optimize the use of scarce road space.
(b) Commuter Rail Services
31. Kenya Railways Corporation (KRC) operations are governed by the KRC Act and
its operations are also subject to the provisions of the State Corporations Act and the
Exchequer and Audit Act. Therefore guidelines that are issued from time to time on the
operations of the State Corporations by the GoK influence the management and operation
of the KRC and occasionally could inhibit decision-making processes through directions
from various GoK agencies.
32. In 2006, the GoK concessioned the operations of its national railway network to
Rift Valley Railways (RVR), a private operator. The term of the concession is 25 years
for freight and five years for passenger services. The concessionaire is expected to
operate freight and passenger services and maintain the full network, whereby the
mainline is to be maintained at least to class-three track standards. The passenger
services concession was due to expire on June 30, 2012 but has been extended by an
additional three years. In support of creating an efficient commuter rail network as
stipulated in Vision 2030, KRC has initiated the process of modernizing, developing and
expanding the existing network in the Greater Nairobi Metropolitan Area.
33. Urban rail commuter passenger services are offered during morning and evening
peak hours in Nairobi city on three routes (central station to Dagoretti; Ruiru; and Stoney
Athi) with all the trains terminating at the central railway station. The services currently
offered do not cater for the needs of the majority, who still walk to their places of work.
Most people are not linked to railways and the rail infrastructure on the core commuter
network is in poor/fair condition with clear maintenance backlogs. Passenger services are
provided using over-aged and worn-out coaches with seats falling to pieces, no lighting
and in some cases no glass in windows. Motive power is provided from the
concessionaire’s (RVR) pool of aged diesel locomotives that are poorly suited for the
purpose. Furthermore, these locomotives are shared with freight services that take
priority in allocation resulting in cancellation of passenger services. Thus, the reliability
43
and quality of operations is limited by the condition of the infrastructure network and the
lack of adequate rolling stock.
34. In addition, commuters still spend a lot of time changing from one mode of
transport to another because of a lack of intermodal terminals that would facilitate rapid
and convenient change transport modes. As a result, railway modal share in urban
passenger transport stands at 22,000 passengers/day (one percent of public transport
demand), despite the potential demand for rail services in densely populated urban areas
crossed by the core network.
35. RVR‘s Annual Report for 2010/2011 notes an increase in the number of
passengers transported during this period, both mainline and commuter, amounting to 29
percent, with the number of passenger kilometers increasing by 11 percent. Whereas
mainline passenger transport noted a drop of three percent in the number of passengers
during this period, commuter transport noted a growth of 32 percent, amounting to
6,679,786 passengers annually as compared to 5,059,179 in 2009/2010. Revenue
generated by passenger transport amounted to US$3.3 million, about six percent of total
revenue, while freight transport accounted for US$53 million or 93 percent of total
revenue. In FY2010/2011 RVR recorded a total loss of US$17.9 million, with an
accumulated loss on June 30, 2011 of US$92 million.
36. Even without counting on a transparent contractual framework for services to be
provided, careful attention must be given to the engineering of the financial architecture
for the rail commuter services, including the development of a realistic business model
for rail commuter operations.
37. Despite the low levels of service noted above, rail commuter transport in Nairobi
grew in 2010/2011 due to an increase in trains run from eight to 14 daily, using the
existing resources; opening of a new route to Stony Athi; and an increase in the number
of coaches from 50 in 2009/2010 to 62. Hence, rail commuter transport in Nairobi has
proven to have growth potential, but the poor financial performance of RVR and the lack
of transparent service contracts (both for maintenance and passenger operations) between
the Government and KRC (or the concessionaire) are likely to raise concerns within the
private sector regarding the financial viability of embarking on the provision of rail
commuter services. This is likely to result in potential operators requesting additional
financial compensations to cover their risks, such as compensation for public service
obligations and/or compensation for the purchase of new rolling stock that the operator
must provide. Therefore, KRC will require contract passenger rail business (financial)
expertise to assess commuter rail financial performance and viability in full detail, and a
legal and regulatory framework that would allow for open access to the track and support
the existence of a competitive railways sub-sector.
38. A market demand analysis study on the improvement of the existing rail network
for commuter services is being supported by InfraCo6. Preliminary results indicate that
6 InfraCo is a subsidiary of Private Infrastructure Development Group (PIDG), supported by Development
Partners, including UK, Germany, World Bank, IFC and others.
44
certain sections of the core rail network that are critical to providing a comprehensive
geographic coverage are not viable without injection of public sector financing. The
study concludes further that, out of the existing lines, the Thika line has the highest actual
ridership and potential demand, and is therefore a priority for upgrading.
39. To make commuter rail services viable, significant public sector contribution to
the capital costs will be required, in particular for upgrading of the rail infrastructure on
the three routes including signaling. As for the provision of the rolling stock, the study
sees several opportunities (e.g., a leasing agreement with rolling stock providers instead
of buying outright the rolling stock). Comprehensive feasibility and detailed engineering
designs and studies of both the infrastructure and operations of a commuter rail service
have not been carried out. Accordingly, the GoK has requested the involvement of the
Bank to finance some of these activities.
40. The KRC/Infraco 2010 report provides preliminary information for commuter rail
modernization in Nairobi. The plan involves expanding the rail commuter network in
Nairobi and its environs and identifies a ―core network‖ covering about 100 km and an
expanded system that will cover another 82 km. The activities that have been identified
by KRC for possible Bank support include feasibility and detailed engineering designs
and studies of the existing lines and stations; provision and installation of a new
signaling system enhancing line capacity; provision and installation of a communication
system for train control; provision and installation of a fare collection system; capacity
building and training of KRC staff; and procurement of a track recording car for
monitoring of track quality in operation.
41. NUTRIP will support some of these activities. The proposed Component B of the
project (Support to KURA and KRC to Develop Mass Transit Corridors) will involve
carrying out feasibility studies and detailed engineering designs for selected commuter
rail lines, and preparation of bidding and contract documents for works and associated
facilities as well as selection of private sector operators to provide large capacity buses
for a BRT system and rolling stock for a commuter rail system are a precursor of a
proposed follow on activities that would possibly be financed by the Bank.
(c) Environmental and Social Impact Assessments (ESIAs) on the proposed BRT
systems and Commuter rail lines
42. It should be noted that the feasibility studies and detailed engineering designs for
both the proposed BRT systems and commuter rail lines will include an evaluation of
environmental issues associated with direct and indirect impacts during the planning,
construction, and operation phases, and outline its implementation in relation to other
aspects of project preparation, design, and implementation. These feasibility studies on
the proposed commuter rail lines will include assessing the construction of the high
density railway line and its associated facilities. Therefore, the ESIA will address
environmental impacts which may arise from construction and operation activities and
provide a mitigation plan to prevent or minimize adverse impacts.
45
43. On the basis of the foregoing background, this component will include two sub-
components as follows:
44. Sub-component B1. KURA (sub-total cost US$64.83 million, of which
US$47.77 million IDA). This component will involve:
(a) Carrying out a range of feasibility studies including detailed designs and
preparing bidding documents for selected Bus Rapid Transit (BRT) road
corridors, through provision of technical advisory services.
(b) Providing public transport and associated services, through provision of
technical assistance.
(c) Developing and implementing a scheme to decongest major urban areas,
through provision of goods, services and works.
(d) Carrying out activities to improve traffic management, including construction
of traffic control centers, provision of traffic management Information
Communication Technology (ICT) solutions, all through provision of goods,
works and services.
(e) Implementing regulatory reforms to rationalize the provision of public
transport services and strengthen the management of public transport
operations, through provision of services.
(f) Constructing the Meru bypass roads.
(g) Strengthening the capacity of KURA to implement urban transport reforms
through training and provision of goods, services and technical assistance.
(h) Building the capacity of KURA‘s staff in traffic planning, management,
regulation and involvement of private sector in financing urban transport
infrastructure and relevant services, through provision of services and
training.
(i) Carrying out: (i) feasibility and detailed engineering design studies of missing
road links in major towns, (ii) a study and developing an urban transport plan
for the city of Mombasa, and (iii) a study for the improvement of traffic flows
of major towns, all through provision of technical advisory services.
(j) Supervising road works construction in sub-component B1 of the project,
through provision of technical advisory services.
(k) Establishing a program to address HIV/AIDS in all the roads contracts, all
through provision of goods and services7.
45. Sub-component B2. KRC (sub total cost US$15.63 million, of which US$11.93
million IDA). This component will involve:
(a) Carrying out feasibility studies and detailed designs, and preparing the
necessary bidding documents for construction of selected commuter rail
systems in Nairobi and other major towns, through provision of technical
advisory services.
7 The HIV/AIDs program is for all road contracts under Component A and Sub-component B1 in the
project.
46
(b) Preparing bidding and contract documents for the selection of private sector
operators providing commuter rail operations and associated services, through
provision of advisory services.
(c) Supplying and installing information systems (IT) and building the capacity of
KRC in IT, management of private sector involvement, planning, management
of contracts including for concessionaires; and other oversight functions; all
through provision of goods, training and services.
46. Component C: Institutional Strengthening and Capacity Building (total cost
US$21.50 million, of which US$17.04 million IDA): This component will support and
deepen the implementation of reforms in the transport sector with a major focus on urban
transport. This component has two sub-components, C1 and C2.
Institutional and Policy Reform
47. The institutional framework for urban transport provision involves several entities
with partial and sometimes overlapping and contradictory mandates and responsibilities.
These fragmented institutional mandates contribute to a dilution of scarce financial
resources, leading to under-investment in transport facilities. The various entities
involved in urban transport include: the Ministry of Roads (MoR), responsible for
formulation of the national road policy and road sub-sector administration; the Ministry
of Local Government, responsible for administering and supporting the Local Authorities
(LAs) and formulating the national policy on urban development; the Ministry of
Transport (MoT), responsible for formulation of the national transport policy and
transport sector administration; the Ministry of Nairobi Metropolitan Development; the
Ministries of Lands, and Housing, responsible for administering and supporting the Local
Authorities; the Kenya National Highways Authority (KeNHA), responsible for
development and maintenance of national roads; the Kenya Urban Roads Authority
(KURA), responsible for development and maintenance of urban roads; the City Council
of Nairobi (CCN) and local councils; the Kenya Railways Corporation (KRC) and Rift
Valley Railways (RVR). With urban transport mandates and responsibilities spread
across a multiplicity of institutions with overlapping or even contradictory policies, urban
transport management is fragmented and often not transparent.
48. New constitution and governance structure. The current set up is likely to
change as the new constitution (2010) and the agreed reforms are implemented, thereby
altering the institutional and implementation arrangements of NUTRIP. Amendments to
the project design may be required during implementation to reflect these changes. The
draft INTP and the new constitution provide a framework for the governance structure
that is likely to emerge in the foreseeable future for the urban transport sub-sector. The
proposed NMTA, in the case of Nairobi, will allow for placing all public transport issues
such as licensing, regulating public transport and traffic management under one agency,
and similarly all national road safety matters will be under the proposed RTSA.
49. NUTRIP will support the development of an effective framework of management
and control that requires an organizational structure that clarifies responsibilities and
47
accountability through a clear separation between regulator, manager and operator. The
regulator sets the policy and operational guidelines (through regulation) but carries little
or no operational risk. The manager is in charge of ‗system management‘, ensuring
compatibility of road based public transport and commuter rail transport, and it takes the
operational risk, contracting service providers (operators) using transparency and
affordability as guiding principles (e.g. public service contracts). The operator runs the
services and usually bears some risks, as agreed in the contract.
50. Government policy principles for urban transport reform: Confronted with
the rapidly deteriorating urban (transport) environment, the GoK has identified the
institutional principles necessary to address arrangements for relationships between
various levels of Government, as well as the structure for non-governmental or statutory
bodies and the private sector.
51. The traditional way of organizing public transport services is through regulation
of operators through permits or licenses, aiming at the creation of a level playing field
that facilitates fair intra- and intermodal competition. The large number of operators that
provide public transport services in Nairobi, for instance, makes public transport
regulation, management and enforcement a daunting challenge. Therefore, successful
implementation of an efficient mass urban transport system will hinge on structural
reforms of the actual urban transport sector, aiming at intra-and intermodal integration
and the creation of a level playing field that facilitates fair competition between modes.
In this context, the main institutional and regulatory constraints for establishing and
managing an integrated and sustainable urban traffic and public transport system should
focus on addressing the following:
(a) Lack of a comprehensive urban traffic and transport strategy. Development of
such a strategy originates in the consolidation of various urban traffic and
transport policies. The urban transport strategy must prioritize mass public
transport and intermediate means of transport and will provide guidance to the
Nairobi Metropolitan Transport Authority in formulating short, medium and long
term actions;
(b) Incomplete legal and regulatory framework. Strengthening and consolidation of
the legal and regulatory framework is indispensable for the establishment of
adequate technical, institutional, financial and socio-environmental conditions for
the concessioning and operation of separated bus-corridors, feeder routes, and rail
commuter services. This includes re-regulation of matatu services and careful
consideration of affordable public service obligations for BRT and commuter rail
service providers;
(c) Weak institutional capacity of public agencies and weak professional capacity of
operators involved in public transport provision. Strengthening of institutional
capacity and training of public and private urban transport professionals will
facilitate the proposed reforms and rationalization of the sector; and
(d) Lack of sufficient enforcement and control capacity within the metropolitan
structure. Compliance with laws, regulations and route concessions to be
introduced depends on reliable enforcement and control mechanisms.
48
52. Operational set up of public transport. Whereas the central government has to
take the lead in formulating a comprehensive urban traffic and transport strategy, the
other issues call for a structural reform of the urban transport sector. Urban transport
sector reforms must be anchored in a clear separation of the roles of owner, regulator,
manager and operators. Such separation is best based on the principle that responsibilities
are assigned according to what each entity does best.
53. Under such circumstances, therefore, the GoK will be the owner of the public
transport system assets and make sure the assets are maintained and utilized to their
optimum capacity. The regulator will provide operational guidelines, based on the
Government‘s transport strategic policy, and ensure that funding mechanisms are in place
(budgets, subsidies, public service contracts). This task is to be conducted by the Nairobi
Metropolitan Transport Authority (NMTA), being the Government‘s representative for
implementation of the urban transport component of the INTP.
54. The formation of the proposed NMTA will have to ensure that all urban transport
stakeholder interests are represented at the board level so as to guide the line agencies
(road, rail) responsible for system management and operations appropriately.
Clarification on the operational set up will be required. For instance, the manager will be
either that of a ‗BRT business manager‘ or ‗commuter rail business manager‘ or, if a
wider network is managed (e.g. feeder services), that of a ‗system manager‘. Guided by
the strategic policy set by the NMTA, the manager will develop tactical policies to
manage the business of public transport efficiently and effective. The system manager
will contract the operation of the public transport mode (BRT, commuter rail service)
through a performance-based contract to operators who perform services according to the
contract specifications. The manager will have the end responsibility for the performance
of the business and as such will monitor and enforce the conditions of the contract. The
role of the operator will be to perform the services according to the specifications and
standards of the contract. The contract will also define the responsibilities and duties of
both the principal (manager) and the client (operator) and so will provide the basis for
investments.
55. The GoK is implementing a number of reforms across the transport sector
including in roads, aviation, railways, and maritime, with the support of the Bank, in an
effort to improve sector performance, though urban transport is lagging behind the other
sub-sectors. The institutional strengthening component under NUTRIP will therefore
address the regulatory, monitoring, and control functions of the urban public transport.
Building upon the Government‘s urban traffic and transport strategy, the project will
support: (a) the development and implementation of an integrated public transport policy
that covers all modes and that includes the required regulatory and policy framework, its
administration, operation, monitoring and control; (b) the formal creation, technical
assistance and training of the Nairobi Bus Rapid Transport entity under the proposed
NMTA as the responsible entity for the BRT operations; (c) technical assistance and
training of the NMTA entities responsible for public transport regulations, public
49
transport monitoring, control and enforcement; and (vi) capacity building/strengthening
for monitoring and evaluation of the project and all its components.
56. The proposed project will support further the development of an effective
framework of management and control, which requires an organizational structure that
clarifies responsibilities and accountability through a clear separation between regulator,
manager and operator. The regulator will set the policy and operational guidelines
(through regulation) but carry little or no operational risk. The manager will be in charge
of ‗system management‘ (e.g. road based public transport, commuter rail transport) and
take the operational risk, contracting service providers (operators) using transparency and
affordability as guiding principles (e.g. public service contracts). The operator will run
the services and will usually bear some risks, as agreed in the contract.
The East African Aviation School (EASA)
57. The project will support enhancing further the capacity of the EASA, which is
currently a directorate of the Kenya Civil Aviation Authority (KCAA), in an effort to
transform it into a stand-alone self-sustaining institution. This is part of the planned
restructuring of KCAA, which involves separating the regulatory function from its
service provision responsibilities. EASA is responsible for providing training for
aviation personnel not only within Kenya but also for a number of countries across
Africa. The support EASA has received through the Bank-financed NCTIP has enabled it
to offer new and advanced courses in aviation, which has generated demand from all over
Africa that the school is unable to meet. The proposed support under this project of US$6
million toward EASA is not only to enable it respond to the growing training needs in the
aviation sub-sector but also to prepare it for eventual de-linking from KCAA. The US$6
million will finance the acquisition of training equipment such as air traffic control
training simulators and expanding and equipping its library, to cater for both students and
the teaching staff.
58. Component C will therefore support and deepen the implementation of reforms in
the transport sector, with a major focus on urban transport, and will involve two sub-
components:
59. Sub-component C1. MoT (sub-total cost US$16.90 million, of which US$13.44
million IDA). This component will involve:
(a) Implementing selected activities in the Integrated National Transport Policy
agreed with the Association, including establishing the proposed National
Road Transport and Safety Authority and building its capacity to carry out its
functions, all through provision of goods, works, and services.
(b) Establishing the proposed Nairobi Metropolitan Transport Authority and
building its capacity to carry out its functions, through provision of goods and
services.
50
(c) Strengthening the capacity of the East Africa School of Aviation and
promoting private sector participation in the aviation sub-sector through
provision of technical advisory services.
(d) Carrying out urban transport sub-sector studies and provision of technical
advisory services.
(e) Strengthening the capacity of MoT staff to carry out their responsibilities,
through training and provision of technical advisory services.
60. Sub-component C2. MoR (sub-total cost US$4.60 million, of which US$3.60
million IDA). This component will involve:
(a) Strengthening the capacity of MoR staff to carry out its responsibilities,
including monitoring and evaluation of the Project, through training and
provision of goods and services.
(b) Building the capacity of the newly-established National Construction
Authority and preparing the implementing regulations for the National
Construction Authority Act (2011), through provision of goods and services.
(c) Building the capacity of the newly established Engineers Board of Kenya and
developing the implementing regulations for the Engineers Act (2011),
through provision of goods and services.
51
Table 2: Preliminary Costs (including contingencies) and Financing
Financing Proportions IDA GOK
Civil works 80% 20%
Consulting services 80% 20%
Goods/Equipment 80% 20%
Training 100% 0%
Category
Base
Cost
Contin-
gencies Total IDA GoK
Works 37.18 6.82 44.00 35.20 8.80
Works 114.08 20.93 135.00 108.00 27.00
Works 54.08 9.92 64.00 51.20 12.80
4. Kisumu Northern Bypass (9 km) Works 8.45 1.55 10.00 8.00 2.00
213.79 39.22 253.00 202.40 50.60
5. Updating Designs and Supervision of works
(a) JKIA junction-Southern Bypass Cons 1.84 0.16 2.00 1.60 0.40
(b) Southern Bypass-James Gichuru junction Cons 3.68 0.32 4.00 3.20 0.80
(c) James Gichuru junction-Rironi Cons 1.66 0.14 1.80 1.44 0.36
(d) Kisumu Northern Bypass Cons 0.64 0.06 0.70 0.56 0.14
7.82 0.68 8.50 6.80 1.70
6. Promotion of Private Sector participation in Road sub-sector Cons 3.68 0.32 4.00 3.20 0.80
7.36 0.64 8.00 6.40 1.60
8. Capacity Building and Technical Assistance Cons 3.40 0.30 3.70 2.96 0.74
Training 1.38 0.12 1.50 1.50 0.00
15.82 1.38 17.20 14.06 3.14
Activities Funded fully by GoK
10. Operating costs Op 1.45 - 1.45 0.00 1.45
5.00 - 5.00 0.00 5.00
26.00 - 26.00 0.00 26.00
32.45 - 32.45 - 32.45
269.88 41.27 311.15 223.26 87.89
Cost Est& Financing Plan (US$M)
9. Training of KeNHA, External Resources Department (MoF)
and State Law Office staff
11. Feasibility and detailed designs studies of JKIA junction-
Southern Bypass-junction; Southern Bypass-James Gichuru
junction; James Gichuru-Rironi; Kisumu Bypass and Machakos
Turnoff-Konza ICT City
12. Implementation of RAPs and relocation of public utilities
associated with works contracts
Sub-total: Activities funded fully by GoK
A. Support to KeNHA to Upgrade the Urban Road Transport Infrastructure
Component
Total for component A (KeNHA)
Sub- total: Construction works
1. JKIA junction-Southern Bypass junction (7 km, 6 lanes) and
associated interchanges, service and access roads (8 km)
2. Southern Bypass junction-James Gichuru road junction (12 km)
including 9 interchanges and elevated highway (4 km)
3. James Gichuru junction-Rironi (26 km of which 7 km 6 lanes and
19 km 4 lanes)
Sub-total: Supervision of works
Sub-total: Other consulting services
7. Feasibility and detailed design and studies for improvement of
road arteries adjoining major towns
52
Category
Base
Cost
Contin
gencies
Total IDA GoK
Cons 8.45 1.55 10.00 8.00 2.00
Cons 6.76 1.24 8.00 6.40 1.60
Goods/
works 15.21 2.79 18.00 14.40 3.60
(d) Construction of Meru Bypass roads (21 km) Works 12.68 2.33 15.00 12.00 3.00
Cons 0.92 0.08 1.00 0.80 0.20
Cons 1.84 0.16 2.00 1.60 0.40
Cons 1.84 0.16 2.00 1.60 0.40
Cons 2.58 0.22 2.80 2.24 0.56
Training 0.67 0.06 0.73 0.73 0.00
(j) Operating costs Op 0.90 - 0.90 0.00 0.90
(k) Implementation of RAP associated with works contract (GoK) 4.40 - 4.40 0.00 4.40
56.24 8.59 64.83 47.77 17.06
Cons 9.20 0.80 10.00 8.00 2.00
Cons/
goods 3.68 0.32 4.00 3.20 0.80
Training 0.67 0.06 0.73 0.73 0.00
(d) Operating costs Op 0.90 - 0.90 0.00 0.90
14.45 1.18 15.63 11.93 3.70
70.69 9.77 80.46 59.70 20.76
1. MoT
Cons
/Goods/
works 6.90 0.60 7.50 6.00 1.50
Cons 3.68 0.32 4.00 3.20 0.80
(c) Road safety interventions
Cons/
Works 4.42 0.38 4.80 3.84 0.96
(d) Training and capacity building Training 0.37 0.03 0.40 0.40 0.00
(e) Operating Costs 0.20 - 0.20 0.00 0.20
15.56 1.34 16.90 13.44 3.46
2. MoR
Cons 2.76 0.24 3.00 2.40 0.60
Cons/
Goods 0.92 0.08 1.00 0.80 0.20
0.37 0.03 0.40 0.40 0.00
(d) Operating Costs Op 0.20 - 0.20 0.00 0.20
4.25 0.35 4.60 3.60 1.00
19.81 1.69 21.50 17.04 4.46
Grand Total Components (A, B, C) 360.39 52.72 413.11 300.00 113.11
(i) Training of KURA Staff
2. KRC
(h) Traffic management studies and activities
(b) Capacity building and Technical Assistance and support
implementation of NCA Act and Engineers Act
(c) Training
(a) Feasibility and detailed design and studies for selected
Commuter and Light rail routes in Nairobi and other major towns
Sub-total: Sub component B1 (KURA)
Sub-total: Sub component C1 (MoT)
(a) Project Monitoring and Evaluation and sector coordination
(b) Institutional Building, TA and advisory services
(e) Supervision of construction of Meru Bypass (21 km)
(f) Study and developing an urban Transport Master Plan for
Mombasa
(g) Institutional Strengthening, Technical Assistance (TA) and
modernizing management information systems and ICT
(b) Feasibility and design studies of selected missing road links
in Nairobi and other major towns
Component
Sub-total: Sub component C2 (MoR)
Total for Component C
C. Institutional Strengthening and Capacity Building
Total for Component B
(b) Urban Transport sector studies, including, among others, the
development of an urban transport sector strategy; and
promotion of PPP in the provision of transport services
(c) Training of KRC staff
(a) Feasibility and design studies of selected Bus Rapid Transit
(BRT) Corridors & preparation of bidding documents for BRT
services operations
(a) TA for strengthening: (i) the National Road Transport and
Safety Authority and the National Road Safety Program; (ii) the
Nairobi Metropolitan Transport Authority; (iii) the East African
School of Aviation; and (iv) support PPP activities in aviation
industry
Sub-total: Sub component B2 (KRC)
B. Support to KURA and KRC to Develop Selected Mass Transit Corridors
1. KURA
(c) Improvement of Traffic Management systems
53
Annex 3: Implementation Arrangements
KENYA: National Transport Improvement Project (NUTRIP)
Project Institutional and Implementation Arrangements
A Project Administration Mechanisms
1. The Kenya National Highways Authority (KeNHA), Kenya Urban Roads
Authority (KURA), Kenya Railways Corporation (KRC), the Ministry of Transport
(MoT) and the Ministry of Roads (MoR) will be responsible for implementing the
project. KeNHA is responsible for the management of all national roads in Kenya;
KURA is responsible for all urban roads, KRC is responsible for the development and
oversight of railways, MoR is responsible for policy and technical standards pertaining to
roads sub-sector issues; and MoT is responsible for other transport matters. A significant
scope of the project covers the road sub-sector comprising mainly of improvement of
road infrastructure and related facilities. KeNHA, KURA, and KRC, parastatals with
independent Boards of Directors outside the central Government, will implement 95
percent (in terms of cost) of the project and the balance (five percent) will be
implemented by MoR and MoT.
2. The overall project implementation arrangements are illustrated in figure 1 and
the details are provided in section IV of the main text. The MoR will be responsible for
the overall project coordination and each implementing agency will be responsible for the
implementation of its respective component or subcomponent of the project. Except for
KURA, the four other agencies are currently implementing Bank-financed projects,
though a number of its project staff have working experience on Bank funded operations.
The project will be mainstreamed into the operations of these institutions and form an
integral part of their operation and investment program.
3. The project will be implemented as follows:
(a) Component A: Support to KeNHA to Upgrade Urban Road Transport
infrastructure.
(b) Component B: Support to KURA and KRC to Develop Selected Mass transit
Corridors as follows:
Sub-Component B1: KURA
Sub-Component B2: KRC
(c) Component C: Institutional Strengthening and Capacity Building Assistance as
follows:
Sub-Component C1: MoT
Sub-Component C2: MoR
54
Coordination and Oversight Arrangements of the Project
Figure 1: Implementation Arrangements
NUTRIP PROJECT OVERSIGHT COMMITTEE
MINISTRY OF ROADS
PIT
MINISTRY OF TRANSPORT
PIT
KENYA URBAN ROADS AUTHORITY
PIT
KENYA NATIONAL HIGHWAYS
AUTHORITY
PIT
KENYA RAILWAYS CORPORATION
PIT
PROJECT COORDINATOR
MASS RAPID TRANSIT
CONSULTATIVE COMMITTEE
55
4. Lessons Learned. The implementation arrangements incorporate the lessons learnt
from other World Bank financed projects in Kenya. For instance, NCTIP was a first
major transport project financed by the Bank after a 10-year break in its lending program
to the transport sector and it was imperative to build capacity in the implementing
agencies to manage major projects. Therefore, adequate capacity building on operational
BRT components will be provided to the KURA PIT through internationally recruited
Technical Assistance (TA) and training. Keeping infrastructure and operations
components in one agency facilitates good coordination in the preparation of the various
BRT (sub-) components. Once the proposed NMTA is established, the KURA PIT could
be transformed into the Public Transport Department as part of the Authority.
Composition of the Project Implementation Teams (PITs)
5. As regards implementation of Component A, the Director General (DG) of
KeNHA has appointed a Team Leader for the PIT with experience and successful track
record in implementation and management of Bank financed projects. The KeNHA-PIT
Team Leader will report to the DG of KeNHA. The members of the team who will
manage the day-to-day activities of the KeNHA components will include: Team Leader;
Pavement/Materials Specialist; Social Development Specialist; Engineering/Design;
Environmental Specialist; Procurement Specialist; Financial Specialist; Construction
Specialist; Economist; BRT Specialist; and Public Private Partnership (PPP) Specialist.
6. To implement Sub-component B1, the DG of KURA has appointed a Team
Leader for the PIT with experience in implementation and management of Bank financed
projects. The KURA-PIT Team Leader will report to the DG of KURA. The members
of the team who will manage the day-to-day activities of the KURA sub component will
include: Team Leader; Pavement/Materials Specialist; Social Development Specialist;
Engineering/Design; Environmental Specialist; Procurement Specialist; Financial
Specialist; Urban Transport Specialist; Institutional Specialist/Economist; and Private
Public Partnership (PPP) Specialist. An experienced international BRT Specialist will be
contracted to advise the team on the preparation of the BRT system operational activities,
to be done concurrently with the engineering designs.
7. As for the implementation of Sub-component B2, the Managing Director (MD)
of KRC has appointed a Team Leader for the PIT with experience in implementation and
management of Bank financed projects. The KRC-PIT Team Leader will report to the
MD of KRC. The members of the team who will manage the day-to-day activities of the
KRC sub component will include: Team Leader; Social Development Specialist;
Engineering/Design; Environmental Specialist; Procurement Specialist; Financial
Specialist; and Railway Planning Specialist; Institutional Specialist/Economist, and PPP
specialist. The PPP specialist can possibly be shared with KURA, as several of the issues
to be tackled overlap.
8. As regards the Sub-component C1, the PS, MoT will appoint a Team Leader for
the PIT. The MoT PIT Team Leader will report to PS of MoT and will manage the day-
to-day activities of Sub component C1. The members of the team will include: Team
56
Leader; Procurement Specialist; Financial Management Specialist; Transport Economist;
Institutional Specialist; Principal, East Africa School of Aviation; an Economist from
Kenya Civil Aviation Authority (KCAA); and Road Safety Specialist.
9. To implement Sub-component C2, the PS, MoR will appoint a Team Leader for
the PIT. The MoR PIT Team Leader will report to the PS of MoR. The members of the
PIT will include: Team Leader; Procurement Specialist; Financial Management
Specialist; Economist/Monitoring and Evaluation Specialist; and Civil Engineer
(Planning).
The Terms of Reference (ToR) for the Project Coordinator
10. The PC will be responsible for the following:
(a) Provide overall project coordination and reporting;
(b) Ensure timely production of joint overall project implementation progress
reports and dissemination of necessary information;
(c) Report to the POC all projects related matters, any difficulties/bottlenecks and
policy; matters that may hinder smooth project preparation and
implementation;
(d) Convene meetings, chaired by Roads Secretary (MoR) with Team Leaders on
a quarterly basis during project implementation;
(e) Ensure that adequate coordination exists with all other PITs and MoF as
required; and
(f) Secretary to the POC and MRT Consultative Committee.
The Terms of Reference (ToR) for the Team Leaders
11. The Team Leaders will provide the overall leadership of their respective
component(s) of the project, and will be responsible for the following:
(a) Manage the day-to-day operations of their respective component(s);
(b) Plan, direct, control and coordinate activities of the project under their
management;
(c) Monitor the commitment of their respective organizations to the project;
(d) Monitor the performance of consultants and contractors in accordance to
agreed contractual obligations;
(e) Implement the project in accordance to the overall plan of operations and
activity schedules and report changes thereto;
(f) Ensure that there is structured and consistent monitoring of progress of
implementation, including the regular reports, and audit reports; and
(g) Ensure project progress reports are submitted to the Project Coordinator (PC)
in a timely manner.
57
The ToR of the Project Implementation Teams
12. The PITs will carry out the following pre-contract and project management
activities:
Pre-award Activities
(a) Prepare the project implementation plan;
(b) Follow up on all actions agreed with the World Bank related to project
preparation;
(c) Invite bids according to World Bank procedures;
(d) Select consultants according to World Bank procedures;
(e) Prepare project contractual documents;
(f) Prepare bidding documents and or request for proposals as appropriate;
(g) Conduct evaluation of bids and or proposals;
(h) Undertake contract negotiations;
(i) Facilitate issuing of letters of awards; and
(j) Liaise with World Bank as well as other PITs and other key stakeholders as
part of coordination role.
Project Management Activities
(a) Discuss and agree with the consultants, suppliers, contractors, and key
stakeholders, where appropriate (e.g. matatu associations, bus operators, City
Council of Nairobi (CCN), etc.) detailed project activities;
(b) Facilitate the mobilization of contractors and consultants and delivery of
goods;
(c) Facilitate import clearance;
(d) Supervise and monitor consultants and contractors;
(e) Supervise project implementation at all levels;
(f) Draw up procedures for receiving, verification and payment of invoices on
timely basis;
(g) Ensure timely payments to consultants, contractors and suppliers;
(h) Preparation and submission of progress reports;
(i) Ensure that financial audits are carried out in time;
(j) Ensure all safeguard policies are adhered to; and
(k) Keep and maintain all project records, reports and information.
The ToR for the Oversight Committee (POC)
13. Responsible for overseeing the overall project preparation and implementation,
the POC will:
(a) Provide strategic and policy direction on matters relating to project
preparation and implementation;
58
(b) Ensure the effective performance of the MRT Consultative Committee on
public transport and facilitate the establishment of the proposed NMTA and
National Road Transport and Safety Authority; and
(c) Provide support and resolve any constraints that may hamper project
implementation and which would require interventions from other ministries
or arms of the Government.
14. The POC will meet at least quarterly and MoR will provide the secretariat.
A. Financial Management, Disbursements and Procurement
(a) Financial Management
15. The Bank‘s financial management team conducted a financial management
assessment of KeNHA, MoT, MoR, KRC and KURA - the entities implementing the
Project. MoR, MoT, KRC and KeNHA are currently implementing the NCTIP, EATTFP,
and KTSSP. There are no overdue audit reports. The objective of the financial
management assessment was to determine whether the financial management
arrangements (a) are capable of correctly and completely recording all transactions and
balances relating to the project; (b) facilitate the preparation of regular, accurate, reliable
and timely financial statements; (c) safeguard the project‘s entity assets; and (d) are
subject to auditing arrangements acceptable to the Bank. The assessment complied with
the Financial Management Manual for World Bank-Financed Investment Operations that
became effective on March 1, 2010 and the Banks FM Unit (AFTFM) Financial
Management Assessment and Risk Rating Principles. The overall residual risk rating is
moderate for KeNHA, KURA, MoT and MoR hence the project will have an on-field
supervision at least once a year, while substantial risk for KRC and hence an on-field
supervision of at least twice in a year.
The following are the financial management arrangements for the project.
Budgeting arrangements
16. KeNHA: The budgeting process is deemed adequate. The budgeting process
follows the GoK procedures titled; Government Financial Regulations and Procedures. In
addition, KeNHA has its own procedures manual entitled ‗Financial Policies, Guidelines
& Procedures Manual dated July 1, 2009‘. The Finance Committee of the Board reviews
the budget before forwarding to the full Board for adoption and approval. It is then
submitted to the MoR for inclusion in the mainstream budget before it is submitted to the
MoF for inclusion in the National Budget. KeNHA uses SAGE Pastel accounting
system; however, the budgetary controls module is not fully operational and they have to
do it manually in excel. Currently, there is a consultant on the ground that is fine-tuning
the uncompleted or the partially completed modules. KeNHA should ensure that the
budgetary module is operationalized by March 31, 2013. This is a dated covenant.
59
17. MoR and MoT: The budgeting process is deemed adequate. The budgeting
process follows the GoK procedures titled; Government Financial Regulations and
Procedures. The budget for 2012/13 was prepared on two platforms; the old system and
the Hyperion and was uploaded into the re-engineered Integrated Financial Management
System (IFMIS) supported by the Bank. The re-engineering of IFMIS started in February
2011 and is being driven by the directorate of IFMIS at Treasury. A consultant has been
selected following Bank‘s no objection and the contract is being finalized before signing.
The assessment of the budgeting module for adequacy can only be assessed thereafter.
18. KURA: The budgeting system will be consistent with the GoK‘s budgeting
system and integrated in the parent Ministry‘s budget cycle. The Authority‘s budget is
prepared and approved by the full board before it is submitted to the MoR for inclusion in
the mainstream budget before it is submitted to the MoF for inclusion in the National
Budget. Any adjustment to the budget is done through the Revised Estimates. Budget
monitoring at the Authority is done through the capture of all vote heads in the Excel
work sheet and manual commitment done on any payment being done. This manual
system is subject to errors and omissions. Further, budget execution is monitored through
the monthly expenditure reports compiled by the Authority for each vote head and
reviewed by the responsible managers. The budget system is deemed adequate for
purposes of the Project.
19. KRC: Budgeting at KRC is done by departmental managers. Budgeting
guidelines are documented in the Government Financial Regulations and Procedures
manual. Budgeting is done manually in excel. The budget process starts with the project
coordinator/head of department who comes up with the budget for the project for the
coming year and forwards to the budget committee in the KRC. The budget committee
(members are the heads of department) consolidates the budget into a single corporation
budget and forwards to the KRC board for approval. After the board‘s approval the
budget is forwarded to the MoT. The MoT will review and forward it to the MoF where
the budget is moderated based on estimated revenues and then it is consolidated with the
Kenya National Annual budget for approval by the National Assembly.
20. The budget is broken into quarterly budgets and actual expenditure is compared
with the budget and any variances explained. These revised budgets are incorporated into
the GoK supplementary budget. After the budgets are approved these are loaded into
Navision (an Enterprise Resource Planning system used by KRC since 2009). The
budgeting arrangements are considered adequate for this project.
Accounting arrangements
21. KeNHA: Accounting staff are adequate in terms of numbers, qualification and
experience. The current designated project accountant for NCTIP will also handle the
proposed National Urban Transport Improvement Project (NUTRIP). KeNHA uses both
the GoK procedures and own developed procedures entitled ‗Financial policies,
Guidelines & Procedures Manual‘. These are considered adequate. KeNHA is currently
using SAGE Pastel accounting system. However, the financial reports for the projects
60
cannot be generated directly from SAGE; the system captures KeNHA transactions as a
whole. Manual intervention is required to come up with project reports. A system‘s
consultant is on board customizing the system to enable them generate project reports
directly without manual intervention.
22. MoR and MoT: These line ministries use GoK procedures titled; Government
Financial Regulations and Procedures which are considered adequate. The staffing is
considered adequate. MoR has an External Resources section that deals with donor
funded projects. The Accountant General at Treasury has plans of revamping all External
Resources Sections in all ministries to make them more effective. The current designated
project accountants for KTSSP will also handle the NUTRIP. The new Chart of
Accounts will enable ministries generate project accounts directly from the re-engineered
IFMIS.
23. KURA: The accounting department at the Authority is not adequately staffed.
However, the Authority is having a phased employment to strengthen the staffing level.
The department is headed by the General Manager, Finance and Administration assisted
by the Manager (Finance). The Authority also has 13 Senior Accountants with 10
heading the Accounting of the 10 Regional Offices and three in the headquarters. All the
staffs are graduates with the relevant professional qualifications. KURA has appointed a
senior accountant who will handle all the financial aspects of NUTRIP.
24. The Authority has an approved Financial Policies and Procedures Manual
developed in June 2009. The manual is considered adequate for the project.
25. KURA is currently using SAGE Partner 2009 for accounting and financial
reporting. However, the system has challenges in generation of financial reports as it is a
lower version. It also lacks important modules such as budgetary module. KURA will
be expected to address the system challenges by March 31, 2013. This will be a dated
covenant. These arrangements together with the mitigation measures on identified
weaknesses are considered adequate for the project.
26. KRC: There is adequate accounting staff capacity. Of the eight staff in
accounting department based at headquarters, one has a post graduate qualification, six
are CPAs (K), and two have intermediary accounting qualifications. In addition, there are
more accounting staff at Railway Training Institute and the regional accountants in
charge of the contracts in the regions. All the staff in accounting have at least five years
of experience. Navision (an Enterprise Resource Planning system) is in full use for
accounting process.
27. KRC has appointed project accountants who will handle all financial aspects of
NUTRIP.
61
Internal control and internal auditing arrangements
Internal Auditing
28. KeNHA, KURA, MoT and MoR all have a strong internal audit function with
audit committees in place to address issues raised by both internal and external audit
reports but the audit committee of MoR and MoT are ineffective due to factors like
membership (drawn from staff), regularity of meetings, follow up of audit findings, and
ownership of the Committees by the line ministries. This is expected to change with the
new Public Financial Management bill. In KRC, the internal auditors have been pre-
auditing but the management has implemented phase 1 of the exit plan. The pre-auditing
impairs the auditors‘ independence and may be a sign of ineffectiveness of internal
control systems.
Internal Control Systems
29. KeNHA, KURA, KRC, MoT and MoR have adequate financial management
manuals documenting the internal control systems to be used under the project. From the
latest audit report of KRC, it is evident that the internal control system is weak. The
auditor issued a qualified opinion on the following grounds that point to weak internal
control systems: technical insolvency due to accumulated losses; inability to fairly
ascertain the value of property, plant and equipment; illegal allocation of various parcels
of land by the Commissioner of Lands, inability to confirm the receivables balance as at
June 30, 2010, long outstanding debts whose recoverability is in doubt and failure to
include investment of shares in the financial statements as required by Generally
Accepted Accounting Principles.
30. The accounts of KRC have been prepared on a going concern basis given the
decision by GoK to convert the outstanding long debts and accrued interest into equity
vide a letter dated February 15, 2012.
31. KRC is a public enterprise established by an Act of Parliament and mandated to
provide rail and inland waterways transport. An amendment of the Act in 2005 saw KRC
concede railway operations to Rift Valley Railways (RVR) from November 1, 2006 for
25 years for freight services and five years for passenger services in a private capacity as
a concession.
Governance and Accountability issues
32. All the entities have existing policies on Governance and Anti-corruption. In
addition, the new constitution has devoted a chapter on governance issues. Staff and
stakeholders in these entities are guided by these policies in combating corruption and
unethical business conduct.
62
Funds flow and disbursement arrangements
33. Banking arrangements: The Ministry of Finance (MoF/Treasury) will be required
to open five Designated Accounts denominated in United States Dollars while the
KeNHA, KURA, KRC, MoR and MoT will each open a Project Account denominated in
Kenyan Shillings. Both accounts will be opened in a Central Bank of Kenya or
commercial banks acceptable to International Development Association (IDA). Details of
these accounts once opened and the signatories are to be submitted to the Bank.
Counterpart funding from the GoK is to be remitted into separate project operating
accounts which entities receiving counterpart funding will be required to open.
34. Funds Flow Arrangements: The project will adopt the transaction based
Statement of Expenditure (SOE) method of documentation and disburse through the
reimbursement to the designated account. The Bank will give an initial advance with a
ceiling. Subsequently, the implementing entities will submit their SOE and the Bank will
process the withdrawal applications and deposit funds into the Designated Account.
Funds will then be transferred from the Designated Account at MoF into the project
accounts at the KeNHA, KURA, KRC, MoR and MoT and payments in relation to
project eligible expenditures can be made from these accounts. Each of these
implementing entities will be submitting their own withdrawal application to the Bank
through the MoF.
35. Retroactive financing: The GoK has advanced the preparation and
implementation of some activities of the project. Therefore, a provision of up to US$5
million has been made to cover eligible expenditures incurred on or after November 30,
2011.
36. Risks in the funds flow process. The Kenya portfolio has been facing delays in the
transfer of funds from the Designated Account held at the MoF to the project accounts
held by the implementing entities due to the many approval levels the payment request
has to go through. In addition, there have been delays in the transfer of Government
counterpart funds especially for infrastructure projects and this is likely to affect this
project too. In NUTRIP, Government counterpart funding is about US$113 million of
the project while IDA is financing US$300 million. As a condition of effectiveness, the
GoK will be required to remit into the project operating account an initial amount
equivalent of KES 30 million for Component A. Subsequently, the GoK should remit the
rest of the funds on a quarterly basis for the duration of the project. This will be
monitored by the Financial Management Specialist through the quarterly Interim
Financial Report (IFR).
63
Funds Flow Chart
Figure 2: Funds Flow for the Implementing Entity
37. Disbursement arrangements: The transaction based disbursement SOE will be
used for the project. Other methods of disbursements particularly Direct Payments and
Special Commitments (letters of credit) are encouraged in cases of huge contracts.
Details concerning disbursements will be spelt out in the project‘s disbursement letter
that will be issued by the Bank.
Financial Reporting Arrangements
38. KeNHA, KURA, KRC, MoR and MoT will prepare quarterly un-audited IFRs for
the project in form and content satisfactory to the Bank, which will be submitted to the
Bank within 45 days after the end of the quarter to which they relate. The contents and
format of the IFRs have already been agreed between the Bank and the implementing
entities.
39. The main schedules in the IFR will include: (a) Statement of Sources and Uses of
Funds; and (b) Statement of Uses of Funds by Project Activity/Component.
40. The project will also prepare the projects annual accounts/financial statements
within three months after the end of the accounting year in accordance with accounting
standards acceptable to the Bank. The audited financial statements and management
letter should be submitted to the Bank within six months after the end of the accounting
year. The entities will prepare their accounts in accordance with International Public
Sector Accounting Standards.
WORLD BANK (IDA)
DESIGNATED
ACCOUNT in
USD at Central
Bank of Kenya or
Commercial
Banks (MoR,
MoT, KURA,
KRC, KeNHA)
PROJECT
ACCOUNT
in KES in
Central
Bank of
Kenya/ or
Commercial
Banks
(MoR, MoT,
KURA,
KRC,
KeNHA)
Project transactions paid in both local and foreign currency
Exchequer
(Central
Bank of
Kenya)
KES
GoK Counterpart
Funding
Project Operating
Account in KES in
Central Bank or
Commercial Banks (MoR,
KenHA, KURA, KRC,
KenHA)
64
Auditing Arrangements
41. The office of the Auditor General (previously KENAO) is primarily responsible
for the auditing of all Government projects. The standard audit terms of reference with
Auditor General‘s Office are sufficient for this project. Kenya National Audit Office
(KENAO) will audit NUTRIP annual financial statements prepared by MoT, MoR,
KURA, KRC and KeNHA using the International Standards on Auditing. The audited
financial statements will be submitted to the Bank within six months after the end of the
fiscal year along with the management letter and management response thereto.
42. KeNHA/MoR: There are no overdue audit reports. The audit reports for NCTIP
MoT for fiscal year (FY) 2011 received an unqualified opinion while that of KeNHA was
qualified. The qualification for NCTIP KeNHA was on commitment fee charged on IDA
undrawn funds, though this is a normal charge as long as the Credit remains undisbursed.
All the same, a clearance certificate has been received from KENAO. The other key
issues raised in the management letter of KeNHA relate to interest on delayed payments
attributable to funds flow delays, under expenditure on Nyamasaria-Kericho- Mau
Summit road and maintenance of two project accounts for MoR (which implemented the
component before KeNHA took over) and KeNHA. The reconciliations between MoR
and KeNHA were done and the inactive MoR bank account closed.
43. Meanwhile, the EATTFP KeNHA received a qualified opinion on grounds of
inaccuracies in the Financial Statements. Other issues raised by the auditor included
deficit in budgeted expenditure explained by long procurement procedures and
incomplete project implementation framework of participating countries, maintenance of
two project accounts for MoR (which implemented the component before KeNHA took
over) and KeNHA. KeNHA submitted the required reconciliations to KENAO and a
clearance certificate issued, and the inactive MoR bank account closed.
44. KRC: In the audit of FY June 2010, KRC received a qualified opinion on
grounds of technical insolvency due to accumulated losses; inability to fairly ascertain the
value of property, plant and equipment; illegal allocation of various parcels of land by the
Commissioner of Lands, inability to confirm the receivables balance as at June 30, 2010,
long outstanding debts whose recoverability is in doubt and failure to include investment
of shares in the financial statements as required by Generally Accepted Accounting
Principles (GAAPS). The accounts of KRC were however prepared on a going concern
basis on the support from Government and creditors. In particular, GoK has converted the
outstanding long debts and accrued interest into equity (conveyed by GoK to KRC in a
letter dated February 15, 2012). Furthermore, KRC has prepared a time bound action plan
on how it intends to address the issues raised in the audit report to their conclusion.
45. KURA: In the financial year (FY) June 2010, KURA received an unqualified
audit opinion.
46. The GoK regularly discloses the project audit reports to the public in the spirit of
being transparent.
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47. The audit reports that will be required to be submitted by the implementing
entities and the due dates for submission are shown in the table below.
Table 1: Audit Reports and Due Dates
Audit Report Due Date
MoT, MoR, KURA, KRC and KeNHA Annual audited financial statements and Management Letter for
the project (including reconciliation of the Designated Accounts
with appropriate notes and disclosures and management letter
responses).
Within six months after the
end of each fiscal/financial
year.
Financial Management Action Plan
The following actions need to be taken in order to enhance the financial management
arrangements for the Project.
Table 2: Important Due Dates
(b) Procurement Arrangements
A. General
48. Procurement for the proposed project would be carried out in accordance with the
World Bank‘s “ Guidelines: Procurement of Goods, Works, and Non-Consulting Services under
IBRD Loans and IDA Credits and Grants by World Bank Borrowers, dated January 2011; and
Guidelines: Selection and Employment of Consultants under IBRD Loans and IDA Credits and
Grants by World Bank Borrowers, dated January 2011” and the provisions stipulated in the
Legal Agreement. The various items under different expenditure categories are described
below. For each contract to be financed by the Credit, the different procurement methods
or consultant selection methods, the need for post-qualification, estimated costs, prior
review requirements, and time frame are agreed between the Borrower and the Bank in
the procurement plan. The procurement plan will be updated at least annually or as
required to reflect the actual project implementation needs and improvements in
Action Date due by Responsible
1. Preparation of the Project Implementation Manual Effectiveness GoK
2. GoK remitting into the project account initial
deposit of KES 30 million for Component A
(KeNHA) as counterpart funding.
Effectiveness GoK
3. KURA budgetary modules are customized to move
from a manual to an automated budgetary control
system in a manner satisfactory to the IDA.
March 31, 2013 KURA
4. KeNHA budgetary modules are customized to
move from a manual to an automated budgetary
control system in a manner satisfactory to the IDA.
March 31, 2013 KeNHA
66
institutional capacity. In addition, an overall project implementation manual will be
prepared before the effectiveness of the Credit.
49. Procurement of Works: Works procured under this project would include:
construction of roads along the Northern Corridor and Meru bypass at an estimated total
cost of US$268 million of which 80 percent will be financed from the Credit. The
procurement will be done using the Bank‘s Standard Bidding Documents (SBD) for all
International Competitive Bidding (ICB) and National SBD agreed with or satisfactory to
the Bank. Post-qualification will be carried for all civil works ICB contracts unless
agreed otherwise between the Borrower and IDA and reflected in the respective annual
procurement plan. Bids for large works contracts will be invited without pre-
qualification, consistent with the Governance Action Plan (GAP). Some small works to
improve urban public transport may be undertaken and the use of the framework
agreements could apply. The type and cost for such works will be defined and agreed
between the Borrower and IDA prior to their inclusion in the updated annual procurement
plan.
50. Procurement of Goods: Goods procured under this project would include:
Information Communication Technology (ICT) goods (hardware and software), and
traffic management-related equipment. The procurement will be done using the Bank‘s
SBD for all ICB and National SBD agreed with or satisfactory to the Bank. The project
proposes to introduce new initiatives in the provision of an efficient urban public
transport and the use of framework agreements may be used to implement some actions
such as traffic management measures on an urgent basis. The nature and budget for such
goods will be defined and agreed between the Borrower and IDA prior to their inclusion
in the updated annual procurement plan.
51. Procurement of non-consulting services: Non-consulting services are envisaged
under the project. The type and budget for such services will be defined and agreed
between the Borrower and IDA prior to their inclusion in the updated annual procurement
plan.
52. Selection of Consultants: Consulting firms will be hired for feasibility studies,
designs and supervision of construction contracts while individual consultants will be
employed for technical assistance (TA) services. Shortlists of consultants for services
estimated to cost less than US$200,000 equivalent per contract may be composed entirely
of national consultants in accordance with the provisions of paragraph 2.7 of the
Consultant Guidelines. Public universities will be competitively selected for monitoring
and evaluation (M&E) activities under the project. The project includes some complex
issues and new initiatives that will be piloted in Kenya including BRT. Therefore
procurement under public private partnerships; services of public universities; and
Indefinite Delivery Contracts (IDCs) or Price Agreements (PAs) are likely to be used.
The specific method of procurement to be used and more detailed cost estimates for such
services will be defined and agreed between the Borrower and IDA prior to their
inclusion in the updated annual procurement plan.
67
53. Operating Costs: The GoK will finance operating costs from its own
contribution to the project and will follow its national procurement and administrative
procedures for acquiring goods and services required for the implementation of the
project. The GoK will also pay for costs associated with any resettlement, land
acquisition, compensation and relocation of services.
54. The procurement procedures and SBDs to be used for each procurement method,
as well as model contracts for works and goods procured, are presented in the
procurement plan.
B. Assessment of the agency’s capacity to implement procurement
55. Procurement activities will be carried out by five implementing agencies: two
Government ministries and three state-owned institutions, namely MoR, MoT, KeNHA,
KURA, and KRC. KeNHA, KURA and KRC are state-owned institutions. Each of the
five implementing agencies has constituted a PIT which reports to the CEO of their
respective agencies. A PIT staff includes among other professional staff a PIT leader and
a procurement officer. With the exception of KURA, the other four agencies are
implementing three ongoing IDA-funded projects which are: the NCTIP, East Africa
Trade and Transport Facilitation Project (EATTFP), and KTSSP through the same PITs.
Because KURA is an offshoot of MoR, most of its technical staff and especially members
of its PIT of the proposed project are former MoR staff that have gained a vast experience
in project implementation under the three ongoing projects.
56. An assessment of the capacity of the implementing agencies to implement
procurement actions for the project was carried out by the Procurement Specialist on the
team. The assessment reviewed the organizational structure for implementing the project
and the interaction between the project‘s staff responsible for procurement duties and
management of their respective agencies.
57. Being cognizant of the experience gained by the implementing agencies from the
ongoing projects, and deployment of the same PITs of the ongoing projects for the
implementation of the proposed project, the overall project risk for procurement is
―moderate‖.
58. The key issues and risks concerning procurement for implementation of the
project have been identified and require enhancement include systemic weaknesses in the
areas of: (a) accountability of procurement decisions; (b) procurement record keeping; (c)
capacity of procurement staff; (d) procurement planning; (e) procurement process
administration including award of contracts; (f) contract management; and (g)
procurement oversight. The corrective measures which have been agreed upon are:
(a) Prepare a Procurement Guide that: (i) defines the roles and responsibilities of all
offices that will be involved in any aspect of procurement implementation of the
project; (ii) set out the sequence and timeframe for the completion of procurement
decisions of all individual players as well as for coordination of the contribution
68
of the players in procurement implementation; and (iii) establish service standards
for processing of payments to contractors and suppliers.
(b) Develop and agree with the Bank by September 30, 2012 a procurement training
plan for the PIT.
(c) Align the preparation processes of procurement plans, work plans and budget
estimates.
(d) Establish separate effective tracking systems of: (i) Procurement plan
implementation and (ii) processing of payments to contractors and suppliers.
(e) In consultation with the Public Procurement and Oversight Authority (PPOA) and
KENAO, ensure that procurement audits by PPOA and financial audits by
KENAO are conducted jointly.
59. Kenya has a public procurement law, the Public Procurement and Disposal Act of
2005 (PPDA) that governs purchase of works, goods and services using public resources
by the central Government entities, local authorities, state corporations, education
institutions, and other Government institutions. Under the PPDA, the PPOA has been
established in addition to the Procurement department in the MoF. The PPDA sets out
the rules and procedures of public procurement and provides a mechanism for
enforcement of the law. Some provisions of PPDA are not fully consistent with the
World Bank procurement guidelines and Consultants Guidelines, and therefore these may
not be applied for the implementation of this project without modification. These
provisions and their respective modifications are:
(a) PPDA 55(2): instead, the tender submission date shall be set so as to allow a
period of at least 30 days from the later of: (i) the date of advertisement, and (ii)
the date of availability of the tender documents.
(b) PPDA 4(2)(c): instead, Recipient‘s Government-owned enterprises shall be
allowed to participate in the tendering only if they can establish that they are
legally and financially autonomous, operate under commercial law and are an
independent agency of the recipient‘s Government.
(c) The Recipient shall use, or cause to be used, bidding documents and tender
documents (containing, inter alia, draft contracts and conditions of contracts,
including provisions on fraud and corruption, audit and publication of award) in
form and substance satisfactory to the Association.
(d) PPDA 61(4): instead, extension of tender validity shall be allowed once only, and
for not more than thirty (30) days, unless otherwise previously agreed in writing
by the Association.
(e) PPDA 66 (3)(b): instead, evaluation of tenders shall be based on quantifiable
criteria expressed in monetary terms as defined in the tender documents. It shall
not be based on a merit points system.
(f) PPDA 39: instead, no domestic preference shall be used in the evaluation of
tenders. Therefore, as a result of the non application of PPDA 66(3)(b) and 39,
contracts shall be awarded to qualified tenderers having submitted the lowest
evaluated substantially responsive tender.
(g) PPDA 67: instead, notification of contract award shall constitute formation of the
contract. No negotiation shall be carried out prior to contract award.
69
(h) PPDA 91: instead, shopping procedure will apply for each low value contracts, in
lieu of Direct Procurement, except as otherwise previously agreed in writing by
the Association.
(i) Regulations 47: instead, the two envelope bid opening procedure shall not apply.
C. Procurement Plan
60. The implementing agencies prepared, at appraisal, 18-months procurement plans
for project implementation which provide the basis for the procurement methods. The
plans were consolidated and discussed and agreed between the Borrower and the Project
Team and will be posted in the Bank‘s external website. The procurement plan will be
updated in agreement with the project team annually or as required to reflect the actual
project implementation needs and improvements in institutional capacity. The review by
World Bank of procurement decisions will be provided in the procurement plan for those
contracts that shall be subject to Prior Review.
D. Frequency of Procurement Supervision
61. Based on the capacity assessment of the implementing agencies, it was
recommended that two supervision missions would carry out post-review of the
procurement actions, as most of the contracts are large and will be subject to the Bank‘s
prior review.
70
KENYA NATIONAL URBAN TRANSPORT IMPROVEMENT (NUTRIP)
PROCUREMENT PLAN (THE FIRST 18 MONTHS)
I. GENERAL
1. Project information:
Country: Kenya
Borrower: Republic of Kenya
Project Name: National Urban Transport Improvement Project (NUTRIP)
Project ID: P126321
2. Bank‘s approval Date of the procurement Plan: May 23, 2012
3. Date of General Procurement Notice: May 3, 2012
4. Period covered by this procurement plan: Fiscal Year 2012-2014 (18 months)
II. WORKS
1. Prior Review Thresholds
No Procurement Method
Threshold for
Procurement Method
(US$)
Prior Review
1. ICB 5,000,000 All
2 LIB All values All
3. NCB < 5,000,000 None
4. Direct Contracting All values All
5. Shopping <100,000 None
Note:
ICB = International Competitive Bidding
LIB = Limited International Bidding
NCB = National Competitive Bidding
2. Post-qualification of bidders: Post-qualification will be carried out for all civil
works contracts unless specified otherwise.
3. Framework Agreements: The use of Framework Agreements will apply. The
type and cost of works will be defined and agreed between the Borrower and IDA
prior to their inclusion in the procurement plan.
71
4. Procurement Packages with Methods and Time Schedules
Ref.
No.
Contract
(Description)
Proc.
Method
Pre- or
Post
qualif.
Domestic
Preferen
ce
(yes/no)
Review
by Bank
(Prior /
Post)
Expected
Bid-
Opening
Date
Comments
COMPONENT A (SUPPORT TO KeNHA TO UPGRADE URBAN ROAD INFRASTRUCTURE
ALONG THE NORTHERN CORRIDOR: IMPLEMENTED BY KeNHA)
1.
Capacity enhancement of
A104 from Southern
Bypass- James Gichuru
road (12 km)
ICB Post No Prior Jan 2013
Bidding
documents
expected to
be ready in
Nov 2012.
2.
Capacity enhancement
from JKIA-Southern
Bypass road (15 km)
ICB Post No Prior April
2013
Bidding
documents
expected to
be ready in
Feb 2013.
3.
Capacity enhancement of
A104 from James Gichuru
road Junction- Rironi
(25 km)
ICB Post No Prior April
2013
Bidding
documents
expected to
be ready in
Feb 2013.
4.
Kisumu Northern Bypass
(9 km)
ICB Post No Prior Jan 2013
Bidding
documents
expected to
be ready in
Nov 2012.
SUB-COMPONENT B1 (SUPPORT TO KURA: IMPLEMENTED BY KURA)
5.
Construction of Meru
Bypass roads (21 km) ICB
(1) Post No Prior Oct 2012
Bidding
documents
expected to
be ready in
June 2012.
III. GOODS AND NON-CONSULTING SERVICES.
1. Prior Review Thresholds:
No Procurement Method Threshold for Procurement
Method (US$) Prior Review
1. ICB 500,000 All
2 LIB All values All
3. NCB < 500,000 >70,000
None
4. Shopping <70,000 None 5. Direct Contracting All values All 6. Framework Agreements All values All
72
Note:
ICB = International Competitive Bidding
LIB = Limited Competitive Bidding
NCB = National Competitive Bidding
2. Framework Agreements: The use of Framework Agreements will apply. The
type and cost of goods will be defined and agreed between the Borrower and IDA prior to
their inclusion in the procurement plan.
Ref.
No.
Contract
(Description)
Proc.
Method
Pre or
Post
qualific
ation
Domestic
Preferen
ce
(yes/no)
Review
by Bank
(Prior /
Post)
Expected
Bid-
Opening
Date
Comments
SUB-COMPONENT B1 (SUPPORT TO KURA: IMPLEMENTED BY KURA)
1.
Traffic signaling
equipment
ICB Post No Prior Oct 2012
Bidding
documents
expected to
be ready in
Aug 2012.
2.
ICT software and
hardware
ICB Post No Prior Jan 2013
Bidding
documents
expected to
be ready in
Nov 2012.
SUB-COMPONENT B2 (SUPPORT TO KRC: IMPLEMENTED BY KRC)
3. ICT software and
hardware NCB Post No Prior Dec 2013
Bidding
documents
expected to
be ready in
June 2013.
4.
Track recording car
LIB* Post No Prior Dec 2013
Bidding
documents
expected to
be ready in
June 2013.
SUB-COMPONENT C1 (SUPPORT TO MoT: IMPLEMENTED BY MoT)
5.
ICT software and
hardware for NMTA and
RSA
ICB Post No Prior March
2014
Bidding
documents
expected to
be ready in
Dec 2013.
6.
Supply and installation of
3-D Air Traffic Control
simulators for East Africa
School of Aviation
(EASA) equipment
ICB Post No Prior Feb 2013
Bidding
documents
expected to
be ready in
Nov 2012.
73
Ref.
No.
Contract
(Description)
Proc.
Method
Pre or
Post
qualific
ation
Domestic
Preferen
ce
(yes/no)
Review
by Bank
(Prior /
Post)
Expected
Bid-
Opening
Date
Comments
7.
Supply for assorted
equipment for EASA
Library
NCB Post No Prior Oct 2013
Bidding
documents
expected to
be ready in
Aug 2013.
SUB-COMPONENT C2 (SUPPORT TO MoR: IMPLEMENTED BY MoR)
8.
ICT software and
hardware for National
Construction Authority
and Engineers Registration
Board.
ICB Post No Prior Nov
2012
Bidding
documents
expected to
be ready in
Sept 2012
* LIB will be used in respect of specialist software and other proprietary items for which there are only a few known
suppliers
III. SELECTION OF CONSULTANTS
1. Prior Review Threshold:
Selection Method
Threshold for
Proc. Method
(US$)
Prior Review
1. Quality and Cost Based Selection
(QCBS) (Firms) No Limit ≥ 200,000
2. Least Cost Selection (LCS) No Limit ≥ 200,000
3. Fixed Budget Selection (FBS) No Limit ≥ 200,000
4. Quality Based Selection (QBS) No Limit ≥ 200,000
5. Consultants qualification (CQS) ≤ 300,000 ≥ 200,000
6. Single Source (Firms) No Limit All
7. Single Source (Individual) No Limit All
Note :
QCBS = Quality and Cost Based Selection.
LCS = Least Cost Selection
CQS = Consultant Qualification Selection
FB = Fixed Budget Selection
SSS = Single Source Selection
IC = Individual Consultant
1. Shortlist comprising entirely of national consultants: Shortlist of
consultants for services, estimated to cost less than US$200,000 equivalent
per contract, may comprise entirely of national consultants in accordance with
the provisions of paragraph 2.7 of the Consultant Guidelines.
74
2. Accredited universities in Kenya: One of the accredited universities will be
selected to provide monitoring and evaluation (M&E) services.
3. Public Private Partnerships: Procurement under PPPs will apply for
activities related to the provision of transport infrastructure and services. The
cost for such services will be defined and agreed between the Borrower and
IDA prior to their inclusion in the updated annual procurement plan.
4. Indefinite Delivery Contracts or Price Agreements: The services for which
contracts will apply will be defined and agreed between the Borrower and
IDA prior to their inclusion in the updated annual Procurement Plan.
5. Procurement Packages with Methods and Time Schedules
Ref
No.
Description of Assignment
Selection
Method
Review
by Bank
(Prior /
Post)
Expected
Proposals
Submission
Date
Comments
COMPONENT A (SUPPORT TO KeNHA TO UPGRADE URBAN ROAD INFRASTRUCTURE
ALONG THE NORTHERN CORRIDOR: IMPLEMENTED BY KeNHA)
1.
Consultant Services for Design Review,
Works Supervision;
Southern Bypass- James Gichuru road
Junction
QCBS Prior Feb 2013
RFPs to be
issued in Dec
2012
2.
Consultant Services for Design Review,
Works Supervision;
JKIA-Southern Bypass
QCBS Prior April 2013
RFPs to be
issued in Feb
2013
3.
Consultant Services for Design Review,
Works Supervision;
James Gichuru road Junction -Rironi
QCBS Prior April 2013
RFPs to be
issued in Feb
2013
4. Feasibility and design studies for four
major towns‘ arterial connections QCBS Prior Dec 2012
RFPs to be
issued in Nov
2012
5. Kisumu Northern Bypass QCBS Prior Dec 2012
RFPs to be
issued in Nov
2012
6. Detailed design of Mombasa - Malaba QCBS Prior July 2012 TOR under
preparation
SUB-COMPONENT B1 (KURA: IMPLEMENTED BY KURA)
7.
Consultant Services for Feasibility
detailed Engineering design and studies
(including traffic management studies for
Nairobi CBD), BRT Operations Plan for
a Bus Rapid Transit System Route for
Nairobi starting at Haile Selasie Avenue
through Ring Road Pumwani, Ring Road
QCBS Prior Sept 2012
RFPs to be
issued in August
2012
75
Ref
No.
Description of Assignment
Selection
Method
Review
by Bank
(Prior /
Post)
Expected
Proposals
Submission
Date
Comments
Ngara, Juja Road, Komarock Road and
ends at the junction of Kangundo Road
and Komarock Road. Also included is
part of Outering Road from Kangundo
Road Junction to Juja Road Junction (25
km).
8. Consultancy services for works
supervision for Meru bypass (21km) QCBS Prior Aug 2012
RFPs to be
issued in August
2012
9.
Consultancy services for Urban
Transport Master Plan Study of
Mombasa municipality. The project
study area is in Mombasa and comprises
the Island, Mainland North, South and
West.
QCBS Prior Sept 2012
RFPs to be
issued in Aug.
2012
SUB-COMPONENT B2 (KRC: IMPLEMENTED BY KRC)
11.
Feasibility and detailed engineering
designs and studies
(a) Existing commuter rail lines routes in
Nairobi and preparation of bidding
documents for both works and commuter
rail operator.
(i) Nairobi to Limuru, 48.2 km line
(ii) Makadara to Thika, 56 km line
(iii) Makadara to Embakasi village, 8
km line
(iv) Embakasi to Lukenya, 30 km line
(b) Metro and light rail in Nairobi
QCBS Prior March
2013
RFPs to be
issued in Dec.
2012
12.
Feasibility and detailed engineering
designs and studies of Nairobi Freight
corridor bypass from Embakasi station to
Dagoretti station 35 km line
QCBS Prior March
2013
RFPs to be
issued in Dec
2012
13.
Feasibility and detailed engineering
designs and studies for:
(a) proposed commuter rail line routes in
Mombasa
(i) Mombasa station to Moi
international airport; airport line (5
km)
(ii) Mombasa to Mtwapa line (20 km)
(iii) Mombasa to Diani line (35 km)
QCBS Prior July 2013
RFPs to be
issued in March
2013
76
Ref
No.
Description of Assignment
Selection
Method
Review
by Bank
(Prior /
Post)
Expected
Proposals
Submission
Date
Comments
(iv) Mombasa to Mariakani line (40
km)
(b) Metro and light rail system
14.
Feasibility and detailed engineering
designs and studies for proposed
commuter rail line routes in Kisumu
QCBS July 2013 RFPs to be issued
in March 2013
15.
Technical assistance and advisory
services related to the selection of private
sector operators and associated service –
Nairobi, Mombasa and Kisumu
Commuter rail
QCBS Prior July 2013
RFPs to be
issued in March
2013
SUB-COMPONENT C1 (MoT: IMPLEMENTED BY MoT)
16. Consulting services for the development
of urban transport strategy QCBS Prior Dec 2012
RFPs to be
issued in Oct
2012
17. Development of a strategy on PPPs in
financing airport infrastructure QCBS Prior Dec 2012
RFPs to be issued
in Oct 2012
SUB-COMPONENT C2 (MoR: IMPLEMENTED BY MoR)
18. Monitoring & Evaluation consultant QCBS Prior Aug 2012 RFPs to be issued
in August 2012
62. Training: Each of the implementing agencies will prepare its annual training
program as part of the project annual work plan before submission to the Bank for
concurrence. The program will identify, inter alia: (a) the training envisaged; (b) the
personnel to be trained; (c) the selection methods of institutions or individual conducting
such training; (d) the institutions conducting the training, if already selected; (e) the
duration of the proposed training; and (f) the cost estimate of the training. Report by the
trainee upon completion of training would be mandatory.
B. Environmental and Social (including safeguards)
63. The project‘s anticipated social and environmental impacts are provided in detail
in Annex 7.
64. The Annex also includes, among others, the Bank‘s Operational Policy triggered,
the description of project location, and the resettlement and compensation anticipated
under the project. Details on the total project affected persons, stakeholder consultations,
potential environmental impacts, proposed mitigation measures and the social impact of
the Resettlement Action Plans, Borrower‘s capacity to implement safeguards and an
update on disclosure of safeguard documents are also provided.
77
C. Monitoring & Evaluation (M&E)
65. Results will be monitored by a team of experts from one of the accredited
universities in Kenya. The selected university will sign a contract with MoR and will
work in close collaboration with KeNHA, KURA, KRC and MoT. The indicators and
results for monitoring including the reduction of travel time and transport cost on the
proposed road corridors are provided in the Results Framework. The baseline
information will be available before the beginning of construction, in case those
indicators for which the information is not available. The consultants will provide both
semi and annual reports.
66. The works contracts will be supervised by independent consultants selected
competitively. The consultants will oversee the day-to-day progress of works on the site
and to certify each payment invoice, including compliance by the contractor with all
technical specifications, environmental and social mitigation plans, and contractual
provisions.
67. Communications Strategy: To supplement the work of the M&E consultant
(accredited university in Kenya), the communications specialist on the task team, based at
the Country office, in collaboration with the relevant units in the project implementing
entities have prepared a communications strategy for the project. The key aspects of the
strategy include:
(a) Communication Needs Assessment
The core communications team comprising of World Bank and the implementing
agencies will conduct a communications needs assessment among stakeholders,
beneficiaries, agencies and partners of NUTRIP. This will be necessary to receive
critical feedback for developing a strategic communication program. The assessment
will be carried out during the period June – August 2012.
(b) Strategy Plan and Design
The Communication Strategy will focus on the project‘s deliverables that reflect the
strategic pillar of creating efficient infrastructure services that will increase Kenya‘s
regional competitiveness, achieve high and equitable growth, and create quality jobs
especially for the fast growing urban population. These expectations are aligned
specifically with Kenya‘s transport sector objectives, and more broadly with Kenya‘s
Vision 2030, the Bank‘s Country Partnership Strategy for Kenya and the Bank‘s
Africa Strategy.
(c) Institutional Implementation Arrangements
The Coordinator for the project in MoR will oversee the implementation of the
Communications Strategy during the life of the project and beyond.
(d) Monitoring and Evaluation
The Coordinator for the project will regularly monitor progress on the
implementation and effectiveness of the strategy, and work with the inter-agency
78
oversight committee in addressing critical issues identified in the course of the project
implementation. The committee will regularly brief all the agencies involved in the
project.
(e) Budget
This strategy will initially be implemented over a three year period (2012-2015) at an
estimated cost of US$75,000 and at Mid-Term Review of the project, an assessment
on the progress will be carried out to determine if additional funds will be needed to
scale up the strategy.
79
Annex 4: Operational Risk Assessment Framework (ORAF)
KENYA: National Urban Transport Improvement Project (NUTRIP)
Project Stakeholder Risks Rating High
Description: Private bus and matatus (mini-buses) operators operated in an environment with minimal regulation to date, to the extent that at present there is indiscipline and disregard for safety and environment. These operators are likely to resist introduction of stringent enforcement of the traffic rules; phasing-out of matatus; introduction of large capacity buses; and corridor exclusivity that will be required for successful operation of a sustainable mass transit system. CCN which currently manages traffic and parking in the city, stands to lose that authority once this responsibility is ceded to Nairobi Metropolitan Transport Authority (NMTA), and may resist this change.
Risk Management: Adequate measures will be included in the project to involve the matatu owners in participating through franchises to run larger buses on BRT routes and focusing mini-buses on feeder routes, learning from the experience of similar efforts in Dar-es-salaam, Tanzania, Johannesburg , South Africa, Lagos and Nigeria, among others. Ministry of Transport (MoT) is building support for NMTA through consultations, such that already the Cabinet has approved the Integrated National Transport Policy (INTP), now before Parliament for approval, which calls for the creation of NMTA. The new constitution also offers opportunities as it introduces devolved governance structures that will support the establishment of NMTA. Project stakeholders, in urban areas and other users of the identified transport corridors want them improved given the high economic, environmental and social cost of traffic congestion and the likely benefits to be accrued following successful completion of the project. Resp: Government and Bank
Stage: All Due Date: Continuous
Status: Ongoing
Implementing Agency Risks (including fiduciary) Capacity Rating: Substantial
Description: The implementation of the new constitution and agreed reforms may change the institutional set up and implementation of the project. Some of the implementing agencies could be merged or change roles or new entities introduced creating some uncertainties in the short and medium term. Kenya Urban Roads Authority (KURA) has recently been established (2007) and has not implemented a Bank funded project. This may pose moderate risk related to implementation capacity.
Risk Management: In case drastic changes in the institutional arrangements occur much earlier than Mid Term Review, an early restructuring will be warranted, though, going by past experience - when Kenya National Highways Authority (KeNHA) was established after reforming the Ministry of Roads (MoR) - the changes resulting from the new constitution are likely to be implemented over an extended period with sound arrangements for the transition. In addition the PITs involved in MoT, MoR, KeNHA, KURA, the key implementation agencies, are likely to remain more or less intact and move into any new structure, should there be some consolidation of ministries. The proposed implementing agencies KeNHA, MoR and MoT, with few exceptions, Kenya Railways Corporation (KRC) and KURA are well staffed and experienced in implementing donor financed projects requiring only some further capacity building effort in specialized
80
areas. Internationally qualified consultants will be engaged to carry out detailed design and supervision of works, and where necessary to enhance the capacity of the implementing agencies. Resp: KeNHA, KURA, KRC, MoR, MoT and Bank’s Task Team.
Stage: All Due Date: Continuous
Status: Ongoing
Governance Rating: Substantial Description: Governance in the transport sector has been challenging. Risks in the sector include unclear institutional arrangements; collusion and other forms of bid rigging; fraud during implementation; weak oversight and regulatory capacity for urban transport (details in the agreed Governance Action Plan (GAP) being implemented under NCTIP). Road authorities are currently developing their internal monitoring, control and compliance systems. The current approval procedures still involve the MoR and MoT which poses a risk of delays, duplicity of accountability and temptation to revert to old bureaucratic ways of conducting business unless monitored closely.
Risk Management: The results of implementing the GAP measures in the road sub-sector seem to contribute to improving the business environment, increasing competition and GoK obtaining comparatively more bids than before (from two-three bids to over nine), with some prices below the Engineer’s estimates. Therefore, the relevant aspects of the GAP will be adopted, in particular unit costs will be rigorously investigated and estimated; stringent due diligence of bidders, consultants and suppliers; bids and qualifications will be subjected to much higher levels of scrutiny; and use of post qualification for large works contracts; and the “Engineer” will be the works supervision consultant and not the “Employer”. The implementation of the GAP has raised the necessary attention of the importance of governance and integrity issues in the transport sector. Stringent due diligence measures during procurement will be undertaken including the use of post-qualification criteria, independent review by a procurement specialist of large works contracts and intensified Bank supervision. Procurement and financial management systems continue to be strengthened through ongoing Bank financed projects in Kenya. The probability is declining due to execution of sector policy, institutional reforms to enhance transparency, accountability and sector performance. This has contributed to greater public scrutiny and recent results from a number of contracts illustrate increased competition and competitive prices offered by bidders.
Resp: Bank’s project team
Stage: All stages Due Date: Continuous
Status: Ongoing
81
Project Risks Design Rating: Moderate
Description: Inadequate data and information on urban transport systems and multiplicity of agencies involved in urban public transport lead to less than optimum designs and delays in decision-making.
Risk Management: Technical assistance will be used to facilitate generation of the required data, where necessary. Creation of the NMTA will reduce the number of decision-making points and enhance stakeholder coordination. The proposed project has diverse implementing agencies with different levels of experience and capacities. Standard practice of using internationally qualified consultants to do feasibility studies and detailed designs of major project components and use of familiar technology in civil works makes the likelihood of design failure very low. Resp: Government and Bank
Stage: All Due Date: Continuous
Status: Ongoing
Social & Environmental Rating: Moderate Description: Project Affected Persons not satisfied with compensation arrangements impede site handover and construction schedules, thereby delaying project benefits.
Risk Management: Resettlement Action Plans (RAP) with adequate provisions on grievance redress mechanism will be prepared consistent with the Bank’s guidelines. Implementation will also draw on recent country and Bank experience in applying OP4.12 Involuntary Resettlement in Kenya drawing from recent urban and transport projects, which worked well. The Environmental Impact Assessments (EIA) that have been carried out for some of the road sections show there are no significant and irreversible impacts of major civil works largely because they are rehabilitation or reconstruction of existing assets and confined largely to the existing right of way. Resp: KeNHA, KURA and KRC
Stage: Implementation
Due Date: Continuous
Status: Ongoing
Program & Donor Rating: Moderate Description: The forthcoming general elections divert attention of project implementing agencies and key staff and priorities change when the new Government takes over. Insufficient coordination among development partners that are supporting activities in urban public transport initiatives in Kenya lead to duplication and conflicting directions on policy and institutional reform matters.
Risk Management: Infrastructure and decongesting major urban areas is the stated priority of both coalition partners in the Government of Kenya (GoK). The project is a high priority for the GoK. The GoK had shown commitment and offered part of the road sections for tolling with bi-partisan support in parliament. Through the existing donor coordination arrangements, the Bank will maintain a close dialogue throughout project preparation and implementation to ensure that development partner support is consistent with the Government’s vision. Resp: Government and Bank
Stage: All Due Date: Continuous
Status: Ongoing
82
Delivery Monitoring & Sustainability Rating: Moderate Description: Counterpart funds are not released in a timely manner and in adequate amounts. Monitoring and Evaluation (M&E) capacity is still weak leading to delays in taking corrective actions in a timely manner.
Risk Management: Keep counterpart funding requirement to a reasonable level for all activities. Budgetary allocation and releases would be closely monitored and reported in the quarterly Financial Monitoring Reports. The proposed implementing agencies are reasonably experienced in managing complex projects and would be further strengthened under the project. The project will support the strengthening of M&E functions in the implementing agencies and will be complemented by an M&E consultant (one of the accredited universities). Resp: Government and Bank
Stage: All Due Date: Continuous
Status: Ongoing
Overall Risk Rating Implementation Risk Rating: High
Comments: Risks include the uncertainties regarding the possible changes in the institutional set up in the transport sector and also implementation arrangements arising from the execution and aligning them to the newly adopted Constitution ; the forthcoming general elections and the transition to a new Government thereafter could slow down implementation; and likely resistance from transporters and bus (or mini-bus) operators to introduction of any new regulatory framework for public transport, phasing out matatus and CCN resistance to cede its current responsibility of traffic management and parking management to the proposed NMTA.
83
Annex 5: Implementation Support Plan
KENYA: National Urban Transport Improvement Project (NUTRIP)
Focus of Supervision
1. Implementation support will focus on actions that are critical for project success.
In particular, emphasis will be placed on quality of works; technical compliance; timely
payment to contractors, suppliers and consultants; timely award of contracts; and
adherence to implementation schedules. Continuous supervision will be encouraged
given that most of the Bank‘s task team members are based in the Kenya country office.
This will therefore enable continuous and cost-effective supervision of the project.
2. Upstream reporting, auditing and accountability, and technical compliance
measures to ensure early detection and remedy of problems through ongoing oversight of
the project implementation activities will be emphasized. For civil works contracts, there
will be speedy review of project implementation progress reports prepared by the
engineering supervision firms that will perform the day to day independent certification
of the quality of work, payment certificates and compliance with contract terms.
3. In case of procurement documents subject to prior review, these will be carefully
reviewed by both the technical expert(s) and the Senior Procurement Specialist on the
team to ensure that they comply with the project‘s technical requirements and the Bank‘s
procurement and consultants guidelines.
4. The Financial Management Specialist will carry out periodic reviews of the
project‘s five implementing agencies‘ financial management systems and controls and
where necessary will conduct reviews of statements of expenditure and monitor the
availability and adequacy of the counterpart funds as reported in the quarterly Financial
Monitoring Reports/Interim Financial Reports. These reviews will be utilized for
improving the implementing agencies‘ systems and performance in these areas.
5. Before each supervision mission, the project implementing agencies will submit
to the Bank, a detailed consolidated project implementation progress report which will
provide the status of the project activities and identify all implementation issues facing
the project. These reports combined with site visits will be the basis for reaching
agreement with the client on the activities for the upcoming period and resolution of
implementation issues facing the project.
Mode of Supervision
6. The Task Team will undertake supervision as follows:
(a) Where necessary, provide technical, procurement and financial management
support to the project‘s implementing agencies from the country based team;
(b) Quarterly supervision reviews of the project, including visits to the project
sites. The review teams will comprise an engineer, procurement specialist,
84
financial management specialist, communications specialist, environmental
specialist, transport specialist Bus Rapid Transit (BRT), railways specialist,
social development specialist and the task team leader;
(c) Annual fully fledged supervision missions involving all the key task team
members;
(d) The communications specialist on the team will prepare a brief on the
implementation status of the project and post it on the external country office
website semi-annually; and
(e) Similarly, the communications specialist on the team will assist the Kenya
National Highways Authority, Kenya Urban Roads Authority, Kenya
Railways Corporations, Ministry of Transport and Ministry of Roads to
prepare brief implementation progress reports of the project, and post them on
their websites.
Monitoring
7. On the side of the Government of Kenya (GoK), the capacity of the
implementation agencies is augmented by technical assistance and consultant services,
particularly in the areas of designs, supervision, project coordination, monitoring and
evaluation, and user surveys. The annual Monitoring and Evaluation (M&E) reports
produced by the M&E consultants (an accredited university in Kenya) will be discussed
at workshops with stakeholders, both during their preparation and on finalization. This
will be particularly important for engaging the matatu and private bus operators regarding
the proposed reforms in the urban public transport systems.
Budget
8. The above activities would require both the Bank and the GoK‘s management to
allocate adequate resources for their staff to be able to carry out comprehensive project
supervision. Inadequate resources will hamper the implementation of the proposed
intensive follow up and monitoring required for mitigating the potential risks identified.
(a) What would be the main focus in terms of support during implementation:
Time Focus Skills Needed Resource Estimate Partner Role
First
twelve
months
Technical review
of bidding
documents,
proposals and bid
and technical
evaluation reports
and review of
technical reports
(feasibility and
design study
reports)
Civil engineering,
urban transport,
institutional, railways,
PPP, financial
management,
procurement, an
independent
technical/procurement
specialist and
communication
45 staff-weeks of Bank
staff plus 26 staff-
weeks of Short Term
Consultant (STC).
Approx.US$250,000
No partner
involved but the
information will
be share by other
development
involved in urban
transport in
Kenya
85
12-48
months
Technical review
of bidding
documents,
proposals and
supervision of
works, and
technical reports
Civil engineering,
urban transport,
financial management,
M&E, social
development, railways,
procurement and
communication
Annually, 30 staff-
weeks of Bank staff
plus 18 staff-weeks of
STC.
Approx. US$190,000
per annum
Other
(b) Skills mix required.
Skills Needed Number of Staff
Weeks/annum
Number of
Trips/annum
Comments
Team Leadership 26 4 site visits (local) Country Office (CO) staff
Civil engineering 10 4 site visits (local) STC [International]
Urban transport 8 2 site visits STC (International)
Procurement 5 2 site visits CO
Social Development 2 2 site visits CO staff
M&E 2 2 site visits STC (local)
Financial management 5 2 site visits CO staff
Environmental 3 2 site visits HQs staff
Railways 6 2 site visits STC (International)
Communications 2 4 site visits CO staff
(c) Partners
Name Institution/Country Role
JICA AfDB, French
Development Agency (AFD)
and European Union (EU)
Japan, France, AfDB,
and EU
Other development partners are interested in
supporting urban transport activities in Kenya under
parallel financing. There is therefore need for
appropriate coordination and harmonization of
assistance to avoid duplication.
86
Annex 6: Economic and Financial Analysis
KENYA: National Urban Transport Improvement Project (NUTRIP)
I. Economic and Financial Analysis
Road Sections
Rehabilitation of the Jomo Kenyatta International Airport (JKIA) –Westlands-
Rironi; Kisumu Bypass and Meru Bypasses
1. The economic analysis was carried out on the above road sections. These road
sections have low capacity and are in a poor condition and are scheduled for
reconstruction/ rehabilitation/upgrading under this project. Table 1 shows the existing
situation and pavement structure and road conditions for the respective road sections.
Table 1: Existing Pavement Structure and Road Conditions Package Name Package
Constituents
Road
Length
Kilometer
(Km)
Current Condition
Package 1:
JKIA Junction
to Southern
Bypass Junction
and associated
roads
Mombasa road
from JKIA
Interchange to
Nairobi Southern
Bypass junction
(A104)
7.3 Pavement geometric cross section poor (no paved
shoulders), access to roadside buildings unsafe
Pavement structural strength inadequate for long
term usage
Facilities for non motorized traffic crossing highway
non-existent
Airport South
Road (C59)
2.8 Pavement structure in advanced state of
deterioration due to exhaustion of service life
Pavement geometric cross section inadequate for
traffic
Facilities for non motorized traffic non existent
Access road from
Mombasa Road
to JKIA
Passenger
Terminal (B10)
3.6 Existing pavement in need of periodic maintenance
intervention
Road service levels low during peak traffic periods
due to congestion
Facilities for non motorized traffic poor
Access road from
Mombasa Road
to Nairobi Inland
Container Depot
2.0 Existing access lanes in poor condition and layout
poses hazard
Package 2:
Southern
Bypass junction
to James
Gichuru Road
Mombasa road
from Nairobi
Southern Bypass
junction to
Langata Road
3.0 Pavement geometric cross section poor (no paved
shoulders)
Pavement structural strength inadequate for long
term usage
Facilities for non motorized traffic crossing highway
inadequate
Mombasa
Road/Uhuru
Highway from
Langata Road
Roundabout to
3.8 For traffic load, severe congestion
Pavement geometric cross section poor in relation to
function
Pavement structural strength inadequate for long
term usage
87
Package Name Package
Constituents
Road
Length
Kilometer
(Km)
Current Condition
Museum Hill
interchange Facilities for non motorized traffic crossing highway
inadequate
Chiromo Road
from Museum
Hill Interchange
to Westlands
Roundabout
1.6 Pavement geometric cross section poor in relation to
function
Pavement structure in advanced state of
deterioration due to exhaustion of service life
Facilities for non motorized traffic crossing highway
inadequate
Waiyaki Way
from Westlands
Roundabout to
James Gichuru
Road
3.1 Pavement structure in advanced state of
deterioration due to exhaustion of service life
Facilities for non motorized traffic crossing highway
inadequate
Package 3:
James Gichuru
Road to Rironi
Waiyaki Way
from James
Gichuru Road to
Southern Bypass
junction at Gitaru
13.0
Pavement structure in advanced state of
deterioration due to exhaustion of service life
Facilities for non motorized traffic crossing highway
inadequate
A104 from
Southern Bypass
junction at Gitaru
to Rironi
12.2
Pavement structure in advanced state of
deterioration due to exhaustion of service life
Facilities for non motorized traffic crossing highway
inadequate
Package 4:
Construction of
Kisumu
Northern
Bypass
Kisumu Northern
Bypass
9.0 Missing bypass for Kisumu City
Package 5:
Meru Bypasses
Western 11 Pavement structure is earth
Eastern 10 Pavement structure is earth
2. The above road sections are currently unfit to serve their intended purposes and
are scheduled for reconstruction/rehabilitation under this project. Table 2 shows the
projected traffic pavement load classes for different sections of the project road in
accordance with the Kenya Road Design Guidelines.
88
Table 2: Traffic Load Classes Package Name Package Constituents Road
Length
(Km)
Pavement Traffic Load Classes
Package 1: JKIA
Junction to
Southern Bypass
Junction and
associated roads
JKIA Interchange to
Nairobi Southern
Bypass junction
(A104)
7.3 Class T O: over 60 million cumulative equivalent
standard axles in 15 years
Airport South Road
(C59)
2.8 Class T O: over 60 million cumulative equivalent
standard axles in 15 years Access road from
Mombasa Road to
JKIA Passenger
Terminal (B10)
3.6 Class T O: over 60 million cumulative equivalent
standard axles in 15 years
Access road from
Mombasa Road to
Nairobi Inland
Container Depot
2.0 Class T 2: 3- 10 million equivalent standard axles in 15
years
Package 2:
Southern Bypass
junction to James
Gichuru Road
Junction
Mombasa road from
Nairobi Southern
Bypass junction to
Langata Road
3.0 Class T O: over 60 million cumulative equivalent
standard axles in 15 years
Mombasa Road/Uhuru
Highway from Langata
Road Roundabout to
Museum Hill
interchange
3.8 Class T O: over 60 million cumulative equivalent
standard axles in 15 years
Chiromo Road from
Museum Hill
Interchange to
Westlands Roundabout
1.6 Class T O: over 60 million cumulative equivalent
standard axles in 15 years
Waiyaki Way from
Westlands Roundabout
to James Gichuru Road
3.1 Class T O: over 60 million cumulative equivalent
standard axles in 15 years
Package 3: James
Gichuru Road
Junction to Rironi
Waiyaki Way from
James Gichuru Road to
Southern Bypass
junction at Gitaru
13.0
Class T O: over 60 million cumulative equivalent
standard axles in 15 years
A104 from Southern
Bypass junction at
Gitaru to Rironi
12.2
Class T O: over 60 million cumulative equivalent
standard axles in 15 years
Package 4: Kisumu
Northern Bypass
Kisumu Northern
Bypass
9.0 Class T 2: 3- 10 million equivalent standard axles in 15
years Package 5: Meru
Bypasses
Western 11 Class T 3: 1-3 million equivalent standard axles in 15
years
Eastern 10 Class T 3: 1-3 million equivalent standard axles in 15
years
3. The proposed interventions for each of the road section comprises of the
following:
89
Table 3: Proposed Interventions Package Name Package Constituents Road
Length
(Km)
Proposed Interventions
Package 1:
JKIA Junction
to Southern
Bypass junction
and associated
roads
Mombasa road from JKIA
Interchange to Nairobi
Southern Bypass junction
(A104)
7.3 Provision of facilities for non motorized traffic
Increase in number of lanes from current six (2
carriageways x 3 lanes)
Strengthening of existing pavement
Reconfiguration of access to roadside buildings
and Inland Container Depot
Airport South Road (C59) 2.8 Reconstruction of existing pavement
Construction of second carriageway within
existing ROW
Grade separation where Airport South Road
meets access road to JKIA Passenger Terminal
Provision of facilities for non motorized traffic
Access road from Mombasa
Road to JKIA Passenger
Terminal (B10)
3.6 Periodic maintenance of existing pavement
Widening from four (2 lanes x 2 carriageways)
to six lanes (2 carriageways x 3 lanes)
Provision of facilities for non motorized traffic
Improvement of facilities for securing access to
the airport
Access road from Mombasa
Road to Nairobi Inland
Container Depot
2.0 Reconfiguration and reconstruction of access
road network leading from A104 to the Nairobi
Inland Container Depot
Package 2:
Southern
Bypass junction
to James
Gichuru Road
Junction
Mombasa road from
Nairobi Southern Bypass
junction to Langata Road
3.0 Provision of facilities for non motorized traffic
Increase in number of lanes from current six (2
carriageways x 3 lanes) without land acquisition
Strengthening of existing pavement
Grade separation for Popo Road junction
Reconfiguration of access to roadside buildings
Mombasa Road/Uhuru
Highway from Langata
Road Roundabout to
Museum Hill interchange
3.8 Construction of overpasses/viaduct with down
ramps and access ramps as necessary
Provision of facilities for non motorized traffic
Chiromo Road from
Museum Hill Interchange
to Westlands Roundabout
1.6 Provision of facilities for non motorized traffic
Increase in number of lanes from current six (2
carriageways x 3 lanes)
Reconstruction of existing pavement
Reconfiguration of access to roadside buildings
Overpass/viaduct at Westlands Roundabout
Waiyaki Way from
Westlands Roundabout to
James Gichuru Road
3.1 Provision of facilities for non motorized traffic
Increase in number of lanes from current six (2
carriageways x 3 lanes) where practical without
land acquisition
Reconstruction of existing pavement
Overpass/viaduct at Westlands Roundabout
Grade separation for James Gichuru junction
Reconfiguration of access to roadside buildings
90
Package Name Package Constituents Road
Length
(Km)
Proposed Interventions
Package 3:
James Gichuru
Road Junction
to Rironi
Waiyaki Way from James
Gichuru Road to Southern
Bypass junction at Gitaru
13.0
Provision of facilities for non motorized traffic
Increase in number of lanes from current six (2
carriageways x 3 lanes) where practical without
land acquisition
Reconstruction of existing pavement
Reconfiguration of access to roadside buildings
A104 from Southern Bypass
junction at Gitaru to Rironi
12.2
Provision of facilities for non motorized traffic
Reconstruction of existing pavement including
service roads
Package 4:
Kisumu
Northern
Bypass
Kisumu Northern Bypass 9.0 Construction of bypass
Construction of facilities for non motorized
traffic
Installation of grade separated interchange at
junction with B1
Package 5:
Meru Bypasses
Western and Eastern 21 Construction of a bypass.
4. Benefits expected to accrue from improvement activities include savings to be
made by motorists on vehicle operating costs, travel time costs and environmental costs.
Assumptions
5. Net benefits were computed using the Highway Development and Management
Model (HDM-4), which simulates highway cycle and vehicle operation condition and
costs for multiple road design and maintenance alternatives. The discount rate was set to
12 percent and the evaluation period to 20 years. Maintenance and reconstruction costs
were estimated in financial and economic terms (net of taxes and subsidies), economic
cost being on average 80 percent of financial costs. Vehicle fleet characteristics and
economic unit costs were defined for six vehicle classes reflecting 2010 costs which are
given in Table 4.
Table 4: Typical Unit Road User average Costs (US$/vehicle-km 2008) Roughness IRI Car Light
Truck
Medium
Truck
Heavy
Truck
Matatu Buses
2 0.313
0.351 0.583 1.083 0.318 0.635
4 0.310.
0.370
0.615
1.142
0.328
0.635
6 0.329
0.400 0.667 1.249 0.345 0.728
8 0.346 0.428 0.715 1.350 0.366 0.796
10 0.372 0.460 0.771 1.470 0.395 0.887
12 0.401 0.497 0.833 1.601 0.429 0.989
14 0.432
0.536 0.899 1.735 0.466 1.094
16 0.464 0.577 0.965 1.871 0.504 1.202
Typical Unit Road User Costs composition for Roughness =2.0 IRI (US$/vehicle-km)
91
RUC component Car Light
Truck
Medium
Truck
Heavy
Truck
Matatu Buses
Fuel and Oil 0.083
0.120 0.179 0.346 0.110 0.219
Tires 0.003 0.023 0.023 0.039 0.003 0.023
Parts and Labor 0.049 0.127 0.245 0.389 0.108 0.157
Depreciation and Interest 0.162
0.064 0.100 0.269 0.043 0.078
Crew time 0.000 0.017 0.035 0.038 0.017 0.094
Passenger and cargo time 0.017 0.000 0.000 0.002 0.037 0.139
Total 0.313 0.351 0.583 1.083 0.318 0.635
*Matatu =mini-bus with 14 passengers
Working Time
6. The value of working time for a car passenger was estimated considering an
average economic annual income of KES 180,000 per annum and 2000 working hours
per year (250 days at eight hours), and the value of working time for a public transport
passenger was estimated as twice the minimum wage rate. The value of non-working
time was considered as 25 percent of working time and the percentage of work journeys
to be 35 for cars and 25 for public transport. The value of cargo time has been estimated
on the basis of an average cargo value of US$400 per ton and cost of working capital of
15 percent. The following table presents typical road user costs of different roughness
levels, in US$ per vehicle-km, and typical road user costs composition for road roughness
equal to two International Roughness Index (newly constructed asphalt surface).
Road Maintenance Unit Costs
7. Table 5 shows the typical road maintenance costs which were considered in the
HDM-4 analysis.
Table 5: Maintenance Unit Costs Road Work Units Economic
Cost (USD)
5 cm overlay M2 20
Patching M2 20
Other Routine maintenance Cost per year 500
Road Sections
8. Five packages were formulated each of which comprises a number of
homogenous sections. Table 6 presents the road section lengths, the proposed road works
and estimated financial base investment costs (2008 prices for which an update is
underway).
92
Table 6: Road Section Characteristics Secti
on
No.
Road Section
Name
Section
Length
(km)
Work Description Base
Cost (M
US$)*
Base Unit
Cost (M
US$/ km)
Package 1: JKIA junction-Southern Bypass and associated roads
1. Mombasa road
from JKIA
Interchange to
Nairobi Southern
Bypass junction
(A104)
7.3 Provision of facilities for non motorized
traffic
Increase in number of lanes from current six
(2 carriageways x 3 lanes)
Strengthening of existing pavement
Reconfiguration of access to roadside
buildings and Inland Container Depot
37.18 2.4
2. Airport South Road
(C59)
2.8 Reconstruction of existing pavement
Construction of second carriageway without
land acquisition
Grade separation where Airport South Road
meeting access road to JKIA Passenger
Terminal
Provision of facilities for non motorized
traffic
3. Access road from
Mombasa Road to
JKIA Passenger
Terminal (B10)
3.6 Periodic maintenance of existing pavement
Widening from four (2 lanes x 2
carriageways) to six lanes (2 carriageways
x 3 lanes)
Provision of facilities for non motorized
traffic
Improvement of facilities for securing
access to the airport
4 Access road from
Mombasa Road to
Nairobi Inland
Container Depot
2.0 Reconfiguration and reconstruction of
access road network leading from A104 to
the Nairobi Inland Container Depot
Package 2: Southern Bypass Junction to James Gichuru Road Junction
1. Mombasa road
from Nairobi
Southern Bypass
junction to Langata
Road
3.0 Provision of facilities for non motorized
traffic
Increase in number of lanes from current six
(2 carriageways x 3 lanes) without land
acquisition
Strengthening of existing pavement
Grade separation for Popo Road junction
Reconfiguration of access to roadside
buildings
114.08 9.92
2. Mombasa
Road/Uhuru
Highway from
Langata Road
Roundabout to
Museum Hill
interchange
3.8 Construction of overpass/viaduct with
downramps as necessary
Provision of facilities for non motorized
traffic
3. Chiromo Road
from Museum Hill
Interchange to
Westlands
Roundabout
1.6 Provision of facilities for non motorized
traffic
Increase in number of lanes from current six
(2 carriageways x 3 lanes)
Reconstruction of existing pavement
93
Secti
on
No.
Road Section
Name
Section
Length
(km)
Work Description Base
Cost (M
US$)*
Base Unit
Cost (M
US$/ km)
Grade separation for Riverside Drive
junction
Reconfiguration of access to roadside
buildings
Overpass/viaduct at Westlands Roundabout
4. Waiyaki Way from
Westlands
Roundabout to
James Gichuru
Road
3.1 Provision of facilities for non motorized
traffic
Increase in number of lanes from current six
(2 carriageways x 3 lanes) where practical
without land acquisition
Reconstruction of existing pavement
Overpass/viaduct at Westlands Roundabout
Grade separation for James Gichuru
junction
Reconfiguration of access to roadside
buildings
Package 3: James Gichuru Road Junction to Rironi
1. Waiyaki Way from
James Gichuru
Junction to
Southern Bypass
junction at Gitaru
13.0 Provision of facilities for non motorized
traffic
Increase in number of lanes from current six
(2 carriageways x 3 lanes) where practical
without land acquisition
Reconstruction of existing pavement
Reconfiguration of access to roadside
buildings
54.08 2.14
2. A104 from
Southern Bypass
junction at Gitaru
to Rironi
12.2 Provision of facilities for non motorized
traffic
Reconstruction of existing pavement
including service roads
Package 4: Kisumu Northern Bypass
1. Kisumu Northern
Bypass
9.0 Construction of bypass
Construction of facilities for non motorized
traffic
Installation of grade separated interchange
at junction with B1
8.45 0.94
Package 5: Meru Bypasses
1. Meru Bypass
Western
11 Construction of a bypass to bitumen
standards.
25 0.51
2. Meru Bypass
Eastern
10 Construction of a bypass to bitumen
standards.
*Updating of costs underway
Traffic Data
9. Table 7 shows the projected traffic data for the project roads. The growth rates
used were derived from historical and economic data and are shown in Table 7.
94
Table 7: Projected Average Annual Daily Traffic (AADT) 2012 No. Road Section AADT (vpd)
Package 1: JKIA junction-Southern Bypass
1. JKIA – Southern Bypass (2005=48913)* 73547
2. JKIA Airport Access (2006=5480) 7773
3. Airport South Road (2006=8940) 12682
Package 2: Southern Bypass to James Gichuru Road Junction
1. Southern Bypass – Langata (2005=58471) 87919
2. Langata – Museum (2005=80890) 121629
3. Museum – Westlands (2005=53774) 80856
4. Westlands James Gichuru (2005=27163) 40843
Package 3: James Gichuru Road Junction to Rironi
1. James Gichuru – Naivasha Road (2005=27163) 40843
2. Naivasha Road – Rironi (2005=11463) 17236
Package 4: Kisumu Northern Bypass
1. A1/B1 to Mamboleo (2009=6963) 8293
2. Kisumu Northern Bypass (2009=1770) 2108
Package 5: Meru Bypasses
1. Western Bypass (2010=800) 899
2. Eastern Bypass (2010=766) 861
Note: Figures in parentheses refer to the AADT by road section and respective year the data was collected.
Table 8: Adopted Future Growth Rates Vehicle Category Growth Rate (%)
JKIA-Rironi Kisumu
Bypass
Meru
Bypasses
Saloon cars 6 6 6
Station wagons 6 6 6
Pick-up, Vans 6 6 6
Matatu, Minibus 6 6 6
Bus 5 5 5
Light Goods Vehicles 5 5 5
Medium Goods Vehicles 5 5 5
Heavy Goods Vehicles 5 5 5
Economic Evaluation
10. HDM-4 analysis was carried out for two different works. These include:
(a) ―Without‖ project case basically involving minor routine and periodic
maintenance such as grass clearance, pavement patching and crack sealing; and (b) ―With
base case scenario‖ basically involving widening and construction of a new pavement
and subsequent routine and periodic maintenance.
11. Sensitivity Analysis was undertaken for each of the sub-sections and compared
with the ―base case scenario‖ as follows:
95
(a) High capital cost scenario assuming that the cost of capital and that of
recurrent works will be 20 percent higher than the base case scenario costs;
(b) Low benefits scenario assumes that accrued benefits will be 20 percent lower
than the base case scenario benefits; and
(c) High capital cost and low benefits scenario which assume that the cost capital
and that of recurrent works will be 20 percent higher than the base case
scenario and accrued benefits will be 20 percent lower than the base case
scenario benefits.
12. The Net Present Value (NPV) and the Economic Internal Rate of Return (EIRR)
for the reconstruction are shown in Table 9.
Conclusion
13. These results show that each of the five road sections are economically viable
(positive NPVs and EIRR>12%), even under the worst situation when both costs go up
by 20 percent and the benefits go down by 20 percent.
Table 9: Summary of NPV and EIRR
Road Section Benefits (US $ M) NPV(US$ M) EIRR (%) Package 1: JKIA junction to Southern
Bypass
Base Case 469.97 65.4
Costs up by 20% 454.7 57.7
Benefits down by 20% 390.57 58.7
Costs up by 20% and
Benefits down by 20%
375.3 51.6
Package 2: Southern Bypass to James
Gichuru Road Junction
Base Case 190.5 36.6
Costs up by 20% 170.1 30.7
Benefits down by 20% 132 29.5
Costs up by 20% and
Benefits down by 20%
111.6 24.7
Package 3: James Gichuru Road Junction
to Rironi
Base Case 148.6 33.9
Costs up by 20% 132.1 28.8
Benefits down by 20% 102.3 27.7
Costs up by 20% and
Benefits down by 20%
85.8 23.3
Package 4: Kisumu Northern Bypass Base Case 53.3 23
Costs up by 20% 44.4 20.2
Benefits down by 20% 33.7 19.6
Costs up by 20% and
Benefits down by 20%
24.9 16.9
Package 5: Meru Bypasses Base Case 11.6 17.2
Costs up by 20% 7.1 14.8
Benefits down by 20% 5.6 12.4
96
Annex 7: Environmental and Social Safeguards
Operational Policy (OP) 4.01, OP /Bank Procedure (BP) 4.11 and OP/PB 4.12
Environmental Safeguards
1. The Project‘s anticipated social and environmental impacts have triggered Bank
Operational Policy (OP) 4.01 (Environmental Assessment), as well as OPs 4.12
(Involuntary Resettlement), and 4.11 (Physical Cultural Resources). The environment
category of the project is B – Partial Assessment – as proposed activities, which for the
most part involve rehabilitation/expansion of existing roads within the right of way (in
addition to some relatively short bypasses that will not traverse natural habitats) will
have moderate and reversible impacts. Overpasses will be constructed largely within the
existing right of way.
Table 1: Safeguard Policies Triggered by the Project
Yes No
Environmental Assessment (OP/BP 4.01) [ X] [ ] Natural Habitats (OP/BP 4.04) [ ] [ X] Pest Management (OP 4.09) [ ] [ X] Indigenous Peoples (OP/BP 4.10) [ ] [ X] Physical Cultural Resources (OP/BP 4.11) [ X] [ ] Involuntary Resettlement (OP/BP 4.12) [ X] [ ] Forests (OP/BP 4.36) [ ] [ X] Safety of Dams (OP/BP 4.37) [ ] [ X] Projects on International Waterways (OP/BP 7.50) [ ] [ X] Projects in Disputed Areas (OP/BP 7.60) [ ] [ X]
Description of Project Locations and Resettlement/Compensation
2. Component A (a). Construction of additional lanes on Jomo Kenyatta
International Airport (JKIA)-Likoni-James Gichuru-Rironi road (A104).
3. The proposed project shall have several components that include providing
additional lanes, dualling of an existing road, constructing a new access roads and
rehabilitation of existing road. The specific components of the project include the
following:
Construction of additional two (2) lanes from JKIA-Nyayo Stadium (approx.
12 km).
Construction of an elevated roadway with two (2) lanes on either side from
Nyayo Stadium to Museum Hill Roundabout (approx. 4 km).
Construction of additional two (2) lanes from Museum Hill Roundabout to
Uthiru (approx. 12 km).
Rehabilitation of the existing carriageway from Uthiru to Rironi (approx. 18
km).
Dualling of Airport South Road (approx. 3 km).
Construction of access road to the proposed Barabara Plaza (approx. 2 km).
97
Construction of access road to Inland Container Depot (approx. 2 km)
Widening of access to JKIA Airport (approx. 2 km).
4. The additional lanes will largely use the available space in between the roads of
the Highway from JKIA to Uthiru covering a total distance of approximately 28km. The
various selected roads earmarked for either construction, expansion, provision of an
elevated roadway or rehabilitation have been identified by Kenya National Highways
Authority (KeNHA) as important sections that require urgent attention in order to reduce
the frequent, unpleasant and the high cost of traffic congestion.
5. Project Affected Persons (PAPs). The census was conducted in the project area
and the cut-off date was March 2, 2012. The total number of vendors in the census that
will be compensated is 344. These vendors have 238 spouses and 740 children who are
dependents and not vendors, resulting in a total number of 1,322 Project Affected Persons
(PAPs). None of the PAPs have any recognizable legal right or claim to the land they are
occupying as they are carrying out business on public land (road reserve). These
informal businesses at the roadside include vending fruits, vegetables, soft drinks,
magazines, second hand clothes and shoes, plants and toys. The majority of these vendors
have temporary wooden stands for their businesses while some place their merchandise
on plastic paper or mobile hand carts that are quickly taken away for safe keeping at the
end of each day‘s activities Only a few PAPs have properly constructed kiosks which
they securely close at night with merchandise inside them.
6. There will be no land acquisition for this section. Works will be within highway
way leave. No residential or permanent business premises shall be affected by the
proposed project. Refer to Table 2.
Table 2: Summary of the Location, Vendors, Affected Structures and PAPs Location
No of
Vendors
Commercial
Structures
Type of Businesses PAPs
Total
PAPs
Adults Children
1. Westlands Area 29 6 Car Park, Car Wash, Taxi
Bay, Bus Park
46 30 76
2. Kangemi Bridge 189 5 Vending fruits, vegetables,
clothes, transport, shoe
shiners, soft drinks, eggs,
potatoes, onions, grocery
330 486 816
3. Uthiru Junction
(Uthiru-Naivasha
Road Junction)
18 18 Vendors selling fruits,
vegetables, soft drinks and
confectionery
22 21 43
4. Uthiru
Corporation near
Footbridge
23 23 Vending fruits, vegetables,
electrical, clothes, fish
(omena), tailoring, cereals
41 55 96
5. 87 Junction 4 4 Vendors selling shoes
clothes, soft drinks, plants
and confectionery
7 5 12
6. Stage 87 9 9 Vending shoes, clothes,
fruits, vegetables, sweets,
cigarettes, sodas
14 15 29
7. Kinoo 56 59 Vending fruits, vegetables,
charcoal and clothes
93 96 189
98
8. Gitaru 9 9 Vending sodas, snacks,
cigarettes, sweets, calling
cards, water, fruits and
vegetables
16 14 30
9. Airport South
Road at junction
with North
Airport Road
7 Mobile trolley
/ temporary
stand / Motor
bikes
Vendors selling fruits, soft
drinks, confectionery and
motorbike transport
13 18 31
10. Nyayo Stadium Few
Mobile
Hawkers
Mobile
Hawkers &
newspaper
vendors
Temporary Hawkers
selling, magazines &
newspapers, fruits,
accessories and toys
- - -
Total 344 133 582 740 1322
7. Income Restoration. There shall only be one main type of income restoration,
namely Non-Land Based (arising from loss of business structures and businesses).
Displacement of persons will be largely at locations next to the highway. For the wooden
stands and kiosks, valuation has been done at Full Replacement Cost, plus the cost of
transporting building materials to an alternative site where the PAPs may work, as well as
the cost of any labor and contractors‘ fees. GoK has also included the loss of income for
a period of six months before business picks up at the alternative site. Those without
stands (who display their goods on the ground), movable carts, and taxis, will be
compensated for loss of business for a period of six months before business picks up at
the alternative site.
8. Since the majority of the vendors have temporary structures (refer to Table 3)
where they carry out their business activities, KeNHA will negotiate with the vendors for
appropriate relocation to an area as close as possible to where they are currently carrying
out their businesses. For those with slightly bigger kiosks, KeNHA will assist with
appropriate relocation of such structures within the area to allow for project
implementation. All the vendors support the proposed road project and request for timely
notice and assistance for relocation to any appropriate site within the area.
Table 3: Informal Business Structures to be Affected by the Road sections Site Location Type of Commercial Structures/Facility Total Number
of Structures
1. Westlands Area Bus Stage, Matatu Stage, Taxi Bay, Public
Toilet, Billboards
6
2. Kangemi Bridge Metal shelter, wooden 5
3. Uthiru Junction (Naivasha Road Junction) Temporary Sheds 18
4. Uthiru Corporation (Near Footbridge) Temporary Wooden Stands 23
5. 87 Junction Temporary Sheds 4
6. Stage 87 Wooden sticks with polythene sheet 9
7. Kinoo Wooden Stand, wooden stand with
polythene sheet, Wooden Kiosk, Metallic
Stand
59
8. Gitaru Wooden sticks with polythene sheet 9
9. Airport South Road at Junction with Airport
North Road
Temporary Sheds. Mobile trolley and
motor bikes
-
10. Nyayo Stadium Mobile Hawkers and Newspaper Vendors -
11. Middle space between the two roads of the
highway from JKIA to Uthiru
Billboards and Trees
Total 133
99
9. The project will greatly improve road usage, reduce traffic congestion, minimize
the losses associated with excess use of fuel during hold-ups and also significantly reduce
accidents. The introduction of the proposed additional lanes and grade separation will
improve traffic flow, enhance road safety and reduce/eliminate inconveniences which
currently are commonplace in the Nairobi Central Business District (CBD) and its
immediate environs.
10. JKIA – Rironi RAP Estimate (Table 4). The RAP is estimated to cost KES106,
577,400 (approximately $US1,268,778.5).
Table 4: Resettlement Cost Estimates
Nr Structure Valuation Cost
(KES)
1. Structures 2,714,000.00
2. Loss of business profit (for six months) 34,830,000.00
3. Trees 23,000,000.00
4. Relocating billboards, road signs, bus stop 2,400,000.00
5. Relocating street lights 14,000,000.00
6. Cost of Monitoring & Evaluation (5%) 3,000,000.00
Sub-Total 1 77,230,000.00
Contingency (15%) 11,584,500.00
Sub-Total 2 88,814,500.00
Inflation (20%) 17,762,900.00
Grand-Total 106,577,400.00
11. Component A (b). The 9 km Kisumu Northern Bypass. Kenya National
Highways Authority (KeNHA) is planning to construct a new road to link Mamboleo to
Otonglo (approximately 9 km). The bypass starts at Mambo Leo Junction of Kisumu-
Kakamega (A1) Highway. After Mambo Leo Junction, the bypass goes through a quarry
field, and then heads towards Kanyakwar Hills at Riat Tor (Hill). Then it curves around
the Kogony Hill, passes in front of Jans Senior Academy and runs for about 1 km. After
curving out westward after Tor 9, it crosses Riat-Paradise Murram road 100 meters to the
south of Abuson Shop. After avoiding the eastern flank of the Abuson River, the bypass
then runs southwards in a straight line. It crosses Kisumu – Butere rail line before ending
on an Intersection on Kisumu-Kisian (B1) Road at a point about 400 meters to the east of
Kotetni Primary School fence. The new alignment will traverse private land that is mostly
used for agricultural purposes.
12. A total of 1,441 PAPs will be affected along this road 9 km section (refer to
Tables 5 and 6). The bulk of the compensation will be acquisition of small pieces of land
to attain the right of way required for the 9 km long, 110m wide reserve for the brand
new road. The 1441 persons are impacted through the purchase of 99 Ha of land. The
purchase is therefore for small parcels of land belonging to PAPs. 249 PAPs with 1124
dependents will need to move permanently off the land. The balance of 46 landowners
and 22 dependents are only affected through partial loss of land. No PAPs will be moved
temporarily. Since the road is on a new alignment passing through virgin settled land,
temporary loss of business will not be experienced. There are no roadside temporary
structures affected and there are no squatters. The PAPs will be compensated (i) at full
100
market replacement values for loss of land and all non-land assets, such as
houses/structures, trees, crops, and other immovable assets that are situated on the
acquired land; and, (ii) for costs of physical location in cases of homestead loss; loss of
temporary income by business operators and their employees; and, loss of rental income
from houses/structures built on acquired private land.
Table 5: Summary of Project Affected Persons by the Mamboleo to Otonglo Road
Item Description No.
1. Number of affected persons on the 9
km Mamboleo to Otonglo road
Male:
Female:
Institutions:
Unknown:
Total
174
87
13
21
295
2. Affected Land Parcels Hectarage 99 Ha.
3. Number of persons whose structures
are affected:
Male:
Female:
Learning Institutions:
Total:
133
52
3
188
4. Number and types of structures
affected
Permanent
Semi-Permanent:
Temporal:
Total:
150
242
165
557
5. Number of businesses affected and
owned by:
Male
Female
Total:
43
20
63
13. There were a total of 295 households (refer to Table 6) affected as follows:-.
PAPs enumerated were 1441. These consisted of PAPs who are land owners, land and
structures owners, tenants of businesses, employees of businesses, residential tenants and
dependants.
Table 6: Summary of Households Affected by the Mamboleo to Otonglo Road
Item Total
Number Disaggregation
1. Households whose head was identified by name
and the size household established 130 Male
Female Institutions Total
86 41 3 130
2. Household whose head was identified by name but
whose household size was not established 144 Male
Female Institutions Total
88 46 10 144
3. Households whose head was not identified by name
nor household size established 21 Unknown
4. The total number of households established in
individual parcels of land along the 9 km road 295
5. Of the 130 Households in (a) plus the 144
household heads in (b), the total number of PAPs
established
1,441
101
14. Component B (e). The Meru town bypass roads (Western B6-C482-B6 and
(Eastern B6-C92-D482-C91) is approximately 21 km long of single carriageway, two-
lane 6.5 meters wide, and bitumen surfaced road with 1.0 meters shoulders on each side.
The existing road is a narrow gravel road averaging 4 meters wide that will be upgraded
to bituminous standards. It will traverse Ntakira, Mpuuri and Ntima locations on the
Western bypass and Igoki and municipality location on the Eastern bypass in Imenti
North district of Eastern Province of Kenya. The major items of works to be executed
under the contract include the following:
Setting out, referencing and taking cross sections;
Site clearance and removal of top soil;
Earthworks;
Constructing drainage structures (box and pipe culverts including protection
works);
Construction of pavement comprising bitumen surfacing, cement stabilised base
and improved material sub-base;
Works necessary for the safe and convenient passage of traffic through the
works;
Provision of road furniture e.g., signs, guardrails, marker posts, wire fencing,
etc.; and
Operations ancillary to the main works, such as the construction of offices,
laboratories and staff housing, accommodation works, relocation of services, the
operations in quarries and borrow areas, the provision of water supply, the
diversion of existing services.
15. The design of the road includes facilities such as lay-bays, bus bays and widening
at market centres along the road. PAPs enumerated were 823 (refer Table 7). These
consisted of PAPs who are land owners, land and structures owners, tenants of
businesses, employees of businesses, residential tenants and dependants.
Table 7: Census of PAPs for Meru Bypass
Category Unit Number
Land PAP 440
Land and structures PAP 60
Business tenants PAP 15
Employees of business PAP 2
Residential tenants PAP 9
Subtotal, number of PAPs to be compensated 526
Dependants PAP 297
Total PAP 823
16. The bulk of the compensation will be for small pieces of land to expand the road
on each side. Thirteen land parcels out of 500 will be fully acquired necessitating eight
families to be fully relocated and five will lose full pieces of land. The household
members for the eight families to be fully displaced are 36. 440 land parcels will be
102
acquired partially for compensation since the remaining land portions can still be utilized
productively and economically.
17. Five public meetings were organized by the Consultant in collaboration with the
local administration and the Kenya Urban Rural Authority (KURA) Upper Eastern
Regional Office. These consultations along with dates, venue and attendance sheets are
recorded in the Resettlement Action Plan (RAP).
18. Failure to understand and manage social issues can have enormous economic
costs, cause significant damage to the reputations of organizations involved and even put
entire investments at risk. Some of the common social risks that can impact on project
outcomes are summarized as follows:
Social support systems are left behind.
Loss of social/business network e.g. Loss of contacts for procurement of business
materials.
While new business opportunities may be found, such opportunity may pose risks
such as disruption of way of life to host community, emergent new ways of life
such as rise in prostitution, drug use and crime rate.
The proposed RAPS are designed to mitigate these social risks.
Environmental Characteristics of Project Areas
19. Component A (a). The project area is mainly built up therefore there will be
minimal or negative animal species that will be displaced. Although a 2 km section of the
road expansion from JKIA to Nyayo Stadium does run parallel to the Nairobi National
Park, there is a buffer provided by an industrial estate between the road and the
boundaries of the Park. Therefore the road works will not impose additional stress on
wildlife, though construction waste should be disposed of well outside the vicinity of the
National Park.
20. Component A (b). The escarpment occurs in the form of rounded shapes on the
east side of Kisumu-Kakamega (A1) Road at which point they taper into piedmont plains
that form a gentle Kanyakwar valley that meet the bulk-hill on which Kisumu city is
built. The hills do not have gazette forest except at Scarp 9 near Jans Senior Academy
where a small area is set aside for arboreal practice. Bush and shrubs occupy the scarps
along which the bypass road corridor is planned.
21. Component B (e). The road generally traverses through rolling topography with a
general altitude of 1,700 meters at the Western Bypass and 1,500 meters at the Eastern
Bypass. Both bypasses cross River Kathita and several small perennial streams. The
river and the streams originate from Mt Kenya and intersect the project road, flowing
eastwards as tributaries of the River Tana. The project is in the vicinity of the Imenti
Forest, which is one of the many small remnant patches of the forest in which fragmented
elephant herds shelter, threatened by a burgeoning human population of agriculturalists
103
who are not sympathetic to their presence. The Imenti Forest lies east of Mount Kenya
between the towns of Embu and Meru and today a small herd of elephants (probably no
more than about 50) shelters within, surrounded by human settlement and isolated from
their Mount Kenya brethren. Illegal logging within the forest itself is inflicting further
pressure on this small band of surviving elephants, whose future is uncertain unless safe
passage for them can be arranged by way of a corridor so that the elephants can reach the
Mount Kenya forests. The proposed bypass does not traverse the forest but follows the
edge of the forest for about 2 km around Gitoro area before joining B6 road - hence not
affecting the forests, or coming close to the wildlife sensitive sites. The Kenya Forestry
Service has an electric fence which prevents access to the Imenti Forest.
22. In addition to the Environmental and Social Impact Assessment (ESIAs) prepared
for the investment components, ToRs for environmental and social studies of the Bus
Rapid Transit (BRT) and Commuter Rail Technical Assistance components have been
prepared and disclosed May 6, 2012 in the InfoShop and May 28, 2012, in-country. The
summary is provided in Table 10.
Environmental Impacts
23. Potential environmental impacts may include soil erosion and disturbance of
water flows, water pollution, traffic disruption, noise, gaseous and dust pollution and
temporary disturbance of flora and fauna (mainly during the construction phase). In the
case of the improvement of the Northern Corridor road (namely JKIA-Turnoff-
Westlands-Rironi road section through Nairobi and associated service roads and major
junctions) some mature trees (though not indigenous species) will be lost as a result of
road widening.
Mitigation measures
24. KeNHA will liaise with the Kenya Forestry Service on replacement tree planting
activities. The magnitude of tree cutting in these urban areas is not sufficient to
necessitate the preparation of a Forest Management Plan, or to trigger the Bank‘s
Operational Policy on Forests, OP 4.36. Nevertheless, it is important to undertake
replacement tree planting liaising with Kenya Forestry Service and local municipality
authorities with responsibility for maintaining roadside verges and vegetation.
25. Since the expected negative impacts will relate to the construction phase of the
project, mitigation and support measures will be incorporated in the relevant clauses in
the contract documents, for the road sections. Such clauses include, among others,
provisions for appropriate measures for storage, handling, transportation and disposal of
all waste material; provision of adequate sanitary facilities; rehabilitation and surface
restoration of borrow pits; basic training in construction health and mitigation measures
against spread of Human Immunodeficiency Virus/Acquired Immune Deficiency
Syndrome (HIV/AIDS); and sustainable seeding and tree growing to restore vegetation to
its original condition; and extraction of water.
104
26. In the road rehabilitation sites, OP 4.11 (Physical Cultural Resources) is also
being triggered. Construction will take place in proximity to areas of cultural, historical,
and religious significance (the museum at Provincial Commissioner‘s House, Uhuru
Park, and the Nairobi Synagogue). Guidelines for ―chance finds‖ procedure will be
integrated into the contracts for construction. These include development of a cultural
property management plan if physical cultural resources are found or adversely affected
(although this is not expected to be the case, and consultations have already been held
with stakeholders and their concerns about the construction process have been noted and
addressed). Table 8 below summarizes the project‘s potential environmental impacts and
proposed mitigation measures.
27. Component A (b). The escarpment occurs in the form of rounded shapes on the
east side of Kisumu-Kakamega (A1) Road at which point they taper into piedmont plains
that form a gentle Kanyakwar valley that meet the bulk-hill on which Kisumu city is
built. The hills do not have gazetted forest except at Scarp 9 near Jans Senior Academy
where a small area is set aside for arboreal practice. Bush and shrubs occupy the scarps
along which the bypass road corridor is planned.
28. Component B (e). The road generally traverses through rolling topography with a
general altitude of 1,700 meters at the Western Bypass and 1,500 meters at the Eastern
Bypass. Both bypasses cross River Kathita and several small perennial streams. The
river and the streams originate from Mt Kenya and intersect the project road, flowing
eastwards as tributaries of the River Tana. The project is in the vicinity of the Imenti
Forest, which is one of the many small remnant patches of the forest in which fragmented
elephant herds shelter, threatened by a burgeoning human population of agriculturalists
who are not sympathetic to their presence. The Imenti Forest lies east of Mount Kenya
between the towns of Embu and Meru and today a small herd of elephants (probably no
more than about 50) shelters within, surrounded by human settlement and isolated from
their Mount Kenya brethren. Illegal logging within the forest itself is inflicting further
pressure on this small band of surviving elephants, whose future is uncertain unless safe
passage for them can be arranged by way of a corridor so that the elephants can reach the
Mount Kenya forests. The proposed bypass does not traverse the forest but follows the
edge of the forest for about 2 km around Gitoro area before joining B6 road - hence not
affecting the forests, or coming close to the wildlife sensitive sites. The Kenya Forestry
Service has an electric fence which prevents access to the Imenti Forest.
29. In addition to the ESIAs prepared for the investment components, ToRs for
environmental and social studies of the BRT and Commuter Rail Technical Assistance
components have been prepared and disclosed May 6, 2012 in the InfoShop and May 28,
2012, in-country. The summary is provided in Table 10.
105
Table 8: Potential Environmental Impacts and Proposed Mitigation Measures
Nature of Impact Mitigation measure taken or to be taken
Slope failure o In sections with high filling along the roadside, all slopes to be cut at
the natural angle of repose and bush grass planted.
o Extremely steep hillsides to be protected by terracing, gabions, stone
pitching and planting of ground cover vegetation
o Side drains to be lined
Altered
topography and
landscape
o Re-vegetate with original vegetation as much as practical when the
construction is over
o To the extent possible, the engineering design to as much as practical
blend with the natural landscape.
o Material sites to be rehabilitated.
o Plant trees 2-3 meters from road to provide shade and stabilize
roadsides and river banks. Trees should not be planted on the inside of
a curve where they might block the view of oncoming vehicles.
Contamination of
land and water
from hazardous
materials and
petroleum products
o Regular servicing and maintenance of construction equipment
o All applicable laws, regulations and standards for the safe use,
handling, storage and disposal of hazardous waste will be followed.
o Hazardous materials will be stored within dedicated areas at work
camps and marshalling yards in full compliance with regulatory
requirements. Temporary storage of hazardous materials at remote
sites must be located at a minimum of 100 meters from a waterway.
o Areas dedicated for hazardous material storage shall provide spill
containment and facilitate clean up through measures such as:
maximum separation from sensitive features, e.g., rivers; clear
identification of the materials present; access restricted to authorized
personnel and vehicles only, and dedicated spill response equipment.
o Storage sites for petroleum products shall be secured and signs will be
posted which include hazard warnings, who to contact in case of a
release (spill), and access restrictions and under whose authority the
access is restricted will be posted.
Establishment of
Quarries and
Borrow Pits
o The contractor should prepare (for approval by the Engineer) a borrow
pit rehabilitation plan.
o Upon acquisition of all borrow sites, these should be fenced with
wooden posts and an access gate erected.
o Rehabilitate quarry sites and other material sites to discourage
pounding which are mosquito breeding grounds. Exposed sites are
also sites of water-borne disease transmission for both human and
animals.
o Upon decommissioning, site to be rehabilitated to the satisfaction of
the Engineer.
106
Nature of Impact Mitigation measure taken or to be taken
o Top soil (30 cm) should be piled up for use in rehabilitation of the
diversion routes.
o Waste excavated materials should be disposed off in a manner that
ensures protection of waterways.
o Re-vegetation of these sites with the previously existing vegetation.
o The contractor to submit to the road engineer a camp and site office
plan defining all facilities to be created. These include human waste
disposal facilities and solid waste management facilities.
o Ensure that all waste materials at the point of construction are
transported to a place of safe disposal.
Health impacts/
HIV/AIDS o Sensitise workers and the surrounding community on awareness,
prevention and management of HIV/AIDS through staff training,
awareness campaigns, multimedia, and workshops or during
community Barazas.
o Ensure that all construction machines and equipment are in good
working conditions to prevent occupational hazards; lighting devices
and safety signal device will be installed for night-time operations.
o Contractor to provide all workers with appropriate protective clothing
such as helmets and dust masks while working in dusty environment.
o Work to minimize or altogether eliminate mosquito breeding sites.
Non-critical
natural habitat and
biodiversity loss
o Liaise with wildlife and forestry officials and wildlife organizations,
civil society, and community representatives to avoid ecological hot
spots, and to be sensitive to breeding and migration seasons, along
road works (particularly along Imenti Forest).
o Protect against poaching and theft of precious woods at camp sites.
Water Pollution in
natural water
courses/Water
conservation
o Avoid construction, especially heavy earthworks during heavy rains.
o Install grease traps for surface run-off in market centres.
o Implement water use management and conservation plans at
construction and camp sites.
o Installation of soil erosion control devices, e.g., gabions and planting
ground cover vegetation.
Run-off
sedimentation o Grit traps will be incorporated as part of the drainage system.
o Planting of grass on the verges to reduce soil erosion and transport of
suspended matter.
Air pollution
generated through
construction
activity,
construction
o In filling sub grade, water spraying is needed to solidify the material.
After compacting, water spraying should be regular to prevent dust.
o The location and operation of asphalt batch plants need to be as far as
possible from residential areas- at least 500 meters from downward
wind direction of asphalt mixing sites.
107
Nature of Impact Mitigation measure taken or to be taken
machinery and
vehicular traffic o Operators should use personal protective equipment (PPE) such as
dust masks, boots, and protective eye wear.
o Vehicles and construction machinery will be required to be properly
maintained and to comply with relevant emission standards.
o Surface dressing of diversions through population centres.
o Regular dust collection, removal and water sprinkling at the asphalt
mixing and cement stabilization yards.
o Water should be sprayed during the construction phase, in the line and
earth mixing sites, asphalt mixing site, and diversion roads.
o Monthly maintenance of asphalt and stabilization plants.
o Speed controls by temporary speed pumps on diversions where
necessary.
o Planting trees in the road reserve will help to filter out particulate
matter emitted from exhaust fumes and dust.
o Avoid night time construction when noise is loudest.
Noise pollution o Operators should use protective personal equipment (PPE) such as
helmets and ear mufflers.
o Monthly maintenance of construction machinery.
o Cleared vegetation, earth and stone will be properly disposed of so as
not to block the water-ways.
Change in natural
drainage pattern o Avoid construction during heavy rains.
o Planting of conservation vegetation to control erosion and
consequently sedimentation.
o The drainage facilities will be periodically cleared so as to ensure
water flow.
Roads pass near
areas of cultural,
historic, and
religious
significance
o As necessary, consult with National Museums of Kenya about Right
of Way of the proposed project. Chance finds procedures clauses will
be inserted into all construction contracts, with the Supervising
Engineer retaining responsibility for the enforcement of such clauses,
and notification of appropriate cultural authorities in the event of
archaeologically and/or culturally significant finds.
Increased Traffic
accidents o At the start of construction of the road, it will be necessary to start a
sustained road safety campaign incorporating strict enforcement of the
Traffic Act (e.g., driver training, removal of broken-down vehicles
from the road, etc.)
o Clearing of vegetation on the road reserve to improve sight distance
and visibility.
o Proper signage to warn motorists and others of any hazards.
o The pavement of road shoulders within the sand harvesting areas will
108
Nature of Impact Mitigation measure taken or to be taken
be designed to full-strength and to extra width for frequent trafficking
and parking of tractors.
o Guard rails will be provided in sections with steep slopes.
o Installing clear road signs especially while approaching bends,
junctions, bridges, and roadside settlements.
o Appropriate road markings should be designed in locations where
standards are compromised to warn drivers of safety hazards.
Social and environmental benefits
30. In addition to social and environmental impacts requiring mitigation, the project
will generate significant social and environmental benefits. The social benefits will
accrue from opportunities for short-term employment during construction, but there will
also be long-term benefits from increases in road safety and time saved. The travel time
along road sections under the project is expected to reduce by 30 percent and vehicle
operating costs are expected to be reduced by 25 percent with the proposed
improvements; and the provision of road-side amenities, including bicycle tracks,
pedestrian crossings, service roads along the selected road sections, and improvement of
junctions will enhance safety on roads.
31. Road safety issues are a major concern in Kenya that claims about 3,000 lives
annually. This project will complement the efforts under the Northern Corridor Transport
Improvement Project (NCTIP) and the Kenya Transport Sector Support Project (KTSSP),
where a National Road Safety program has been developed and approved by the GoK.
Under the project, attention will be given to increasing awareness of road safety through
information provision and education of adults as well as children along the selected road
corridors. The design of the project will include widening of the existing road in critical
places to allow for bicycle paths and pedestrian sidewalks to enhance safety in selected
areas.
32. The project will greatly improve road usage, reduce traffic congestion, minimize
losses associated with excess use of fuel during hold-ups and also significantly reduce
accidents. The introduction of the proposed additional lanes and grade separation will
improve traffic flow, enhance road safety and reduce/eliminate inconveniences which
currently are commonplace in the Nairobi CBD, Kisumu and Meru and their immediate
environs. The reduction in traffic congestion along the JKIA –Nyayo Stadium route will
reduce the current practice of motorists taking shortcuts through the Nairobi National
Park or along residential roads adjacent to the park, which increases air pollution in the
Park and causes distress to wildlife. Smooth traffic flow also has strong greenhouse gas
reduction benefits and reduces local air pollution. Nitrogen oxide8, carbon dioxide, and
8 Nitrogen oxides (NOx) act as indirect greenhouse gases by producing the tropospheric greenhouse gas
'ozone' via photochemical reactions in the atmosphere. Carbon dioxide is a primary greenhouse gas.
109
carbon monoxide emissions are likely to be reduced by a factor of 2-3 due to the
reduction of repetitive stop-starts.
Chronic exposure to carbon monoxide is associated with increased risk for adverse cardiopulmonary
events.
110
Table 9: Summary of Social Impacts Covered in the RAPs
Nature of works Land
acquisition
No of PAPs Cost of RAP
(million)
Consultations
1
JKIA-Likoni - James Gichuru-Rironi
Road (A104): The proposed project shall
have several components that include
providing additional lanes, dualling of an
existing road, construction of a new access
roads and rehabilitation of the existing
road. The additional lanes will largely use
the available space in between the roads of
the highway from JKIA to Uthiru.
Approximate 51 kms of road sections.
No
Mostly informal traders
Total 344 vendors to be compensated and
133 temporary structures affected.
The 344vendors have 238 spouses and 740
children (dependents). There will be no land
acquisition. Works will be within highway
way leave
KES106.6
(US$1.3 equivalent)
Three
consultations on
February 29th
and
March 2, 2012.
Minutes and
attendance
included in the
RAP
2
KISUMU Bypass: KeNHA is planning to
construct a new road to link Mamboleo to
Otonglo (approximately 9 km).
Construction of the Kisumu Northern
bypass along the Northern Corridor.
New road 9 km.
Yes 1,441 PAPs
KES1,055.3
(US$12.87
equivalent)
Consultations
held during
census on April
23 through April
30, 2012.
3
Meru Bypass: Construction of Meru
bypasses to decongest the town. The
existing road is a narrow gravel road
averaging 4m wide that will be upgraded
to bituminous standards. The works to be
executed under the contract comprise the
construction of approximately 21 km of
single carriageway, two-lane 6.5 meters
wide, bitumen surfaced road with 1.0
meters shoulders on each side.
500 land
parcels with
estimated
area of
19.1ha will
be acquired.
The affected population will be 526 persons
to be compensated as follows: 440 to be
compensated for land only; 60 for land and
structures; and 26 are tenants to be paid a
disturbance allowance.
There are 297 are dependents.
13 land parcels will be acquired fully
whereby 8 families with a population of 36
people will be fully resettled and 5 full
pieces acquired. The bulk of compensation is
for acquiring small pieces of land on either
side of road for expansion.
KES372.0
(US$4.4 equivalent)
Five (5) public
meetings
organized by the
Consultant and
KURA on March
10, and March
11th
, 2012
TOTAL COSTS OF RAPS KES1,533.9
(US$18.6 equivalent)
111
Borrower’s Capacity to Implement Safeguards
33. KeNHA has substantial experience in the preparation and implementation of
Environmental and Social Management Plans (ESMPs) and RAPs in compliance with
previous Bank standards, conducted under earlier Bank-financed projects, including
among others, the Northern Corridor Transport Improvement Project, and the Kenya
Transport Sector Support Project. KeNHA has experienced social specialists with
experience in implementing OP 4.12 on staff. The environmental specialist has
undertaken preparation and monitoring of ESIAs for Bank financed projects at both
KeNHA and previously at Kenya Power and Lighting Company. Although KURA has
less in-house experience, they have recently hired an environmental specialist, and the
Environmental and Social Impact Assessment (ESIA) submitted and cleared for the Meru
bypass was of a high standard.
Stakeholder consultations
34. Stakeholder consultations were conducted for all PAPs as well as local
businesses, farms, and public institutions (schools, care homes, etc) along the route
(roads). Dates of consultations are provided in Table 9. Key concerns were: dust
pollution from construction; construction waste disposal; loss of custom due to limited
accessibility to shops, petrol stations, and hotels during construction; limited accessibility
to a religious institution (Nairobi Synagogue); road safety during construction; and
adequate compensation for land acquisition. Monitoring will be undertaken to ensure
proper environmental impact mitigation measures are in place ( frequent watering of
roads; disposal of waste away from residential and market areas; adequate safety signs
and safe crossing points; provision of access points to businesses, institutions, and houses
of worship). Compensation issues will be addressed through the implementation of the
RAPs consistent with Bank policy and standards.
Disclosure of Safeguards Documents
35. All the ESIAs and RAPs including an Environmental and Social Management
Plan (ESMP), has been cleared by the World Bank and was disclosed in the Bank‘s
InfoShop and in-country (Table 10). The draft Terms of Reference for the ESIAs for
development of Bus Rapid Transit corridor and the Commuter Rail network were
prepared and also disclosed both in the Bank‘s InfoShop and in-country. The
implementing agencies have staff with adequate experience and qualifications to manage
environmental and social matters associated with their respective infrastructure
rehabilitation components. All construction projects will adhere to the rules and
regulations of the National Environmental Management Authority (NEMA), and all
necessary permits will be obtained prior to construction.
112
Table 10: Environmental and Social Safeguards Reports
Item
no.
Road section/Commuter rail Clearance by the
Bank
Disclosed in
InfoShop
Disclosed in-
Country
Environmental and Social Impact Assessments (ESIAs)
1.
Expansion and improvement of the
Northern Corridor road section
through Nairobi starting from JKIA
turnoff-Westlands-Rironi
May 4, 2012 May 9, 2012 May 9, 2012
2. Kisumu Northern Bypass May 4, 2012 May 9, 2012 May 8, 2012
3.
Meru Bypasses. Construction of
approximately 20 km of single
carriageway, two-lane 6.5 m wide,
and bitumen surfaced road with 1.0
m shoulders on each side.
April 23, 2012 April 24, 2012 April 24, 2012
Resettlement Action Plans (RAPs)
1.
Expansion and improvement of the
Northern Corridor road section
through Nairobi starting from JKIA
turnoff-Westlands-Rironi
April 26, 2012 May 3, 2012 May 2, 2012
2.
Kisumu Northern Bypass: new road
to link Mamboleo to Otonglo
(approx. 9 km).
May 6, 2012 May 9, 2012 May 9, 2012
3.
Meru Bypasses. Construction of
approximately 21 km of single
carriageway, two-lane 6.5 meters
wide, and bitumen surfaced road
with 1.0 meter shoulders on each
side.
May 7, 2012 May 9, 2012 May 9, 2012
Terms of Reference (ToRs)
1.
Environment and Social Impact
Assessments for development of Bus
Rapid Transit Systems and
Commuter Rail network
May 6, 2012 May 11, 2012
May 28, 2012
(disclosed on the
websites of KURA
and KRC)
Wajir
Turkana
Marsabit
Garissa
Isiolo
Kitui
Tana River
Mandera
Kajiado
Narok
Samburu
Mwingi
Taita Taveta
Kwale
Moyale
Laikipia
Kilifi
Baringo
Malindi
Lamu
Nakuru
Makueni
West Pokot
Nyeri
Machakos
Nandi
Thika
Meru North
Migori
NyandaruaKericho
Mbeere
Uasin Gishu
Siaya Koibatek
Buret
Keiyo
Trans Mara
Meru Central
Bomet
Bungoma
Trans Nzoia
Busia
Tharaka
Suba
Kiambu
Marakwet
Kirinyaga
Kisii
NyandoBondo
ButereKakamega
Embu
Kisumu
Teso
Kuria
Homa Bay
Lugari
Nyamira
Mt Elgon
Muranga
Gucha
Nairobi
Maragua
Meru South
Vihiga
Rachuonyo
Lamu
Suba
Mombasa
LamuLamu
Suba
MombasaMombasa
A2
A1
A109
A3
A23
A14
A104
A109
A1
A109
A1
A104
A104
A104
A3
A104
A104
A3
A3
A109
A104
A1
A3
B9
B3
B1
B8
6B
B4
B5
B7
B2
B5 B6
B2
B9
B3
B1
B1
B9
B9
B7
B3
B4B4
B9
B8
B7
B4
B9
B9
B5
B7
B7
B9
B4
B8
B5
WOTE
LAMU
EMBU
HOLA
MERU
MAUA
ITEN
KWALE
KITUI
THIKAKENOL
BOMET
KISII
NAROK
SINDO
CHUKA
AWASIBONDO
SIAYA
BUSIA
IJARA
WAJIR
TAVETA
KILIFI
KIAMBU
OGEMBO
MIGORI
LITEIN
MWINGI
VIHIGA
NAKURU
BUTERE
KITALE
ISIOLO
MOYALE
LODWAR
MALINDI
KAJIADO
NAMANGA
MURANGA
NYAMIRA SIAKAGO
KERICHO
AMAGORO
NANYUKI
BUNGOMAELDORET
GARISSA
MARALAL
MANDERA
KERUGOYA
WUNDANYI
ISEBANIA
KILGORIS
MACHAKOS
HOMA BAY
MASALANI
OL KALOU
KAPSABETKAKAMEGA
KAPSOWAR
KABARNET
MARSABIT
MARIMANTI
KAPSAKWONY
KAPENGURIA
OLOITOKITOK
NANDI HILLS
OL JORO OROK
Legend DISTRICT HQ
PROVINCIAL HQ
Clsfd_RoadsRoadClass
AB
KenyaDistrictBounndaries
ATHI RIVER
KISUMUNORTHERNBYPASS
MERUBYPASSES
RIRONI JOMOKENYATTA INTLAIRPORT (JKIA)
ROADS TO BE IMPROVED UNDER NUTRIP
NATIONAL URBAN TRANSPORT IMPROVEMENT PROJECT
LAPSSET CORRIDOR