1

Kenya 1st Mover PPP RoadProjects14TH March, 2017

Eng. Peter M. MundiniaDirector General,

Kenya National Highways Authority (KeNHA)

MINISTRY OF TRANSPORT, INFRASTRUCTURE, HOUSING AND URBAN DEVELOPMENT

STATE DEPARTMENT OF INFRASTRUCTURE

CONTENTS

Nairobi Southern Bypass Mombasa – Nairobi Nairobi – Thika Highway Rironi – Naivasha – Nakuru Nyali Bridge

2

• Construction commenced early 2012 and is expected to be completed by May 2016.

• 28.6km of dual carriageway with 12 km of slip roads and 8.5 km Service Roads

• Design speed of 100 km/hr.

• Pavement Design: loading of 40 M CESA

Nairobi Southern O&M PPP Project

3

Toll Plaza Location

Toll Plaza Location Just to

the West of Ngong Road Intersection

Proposed: Toll Plaza Location South of Langata

Road I/C

4

Toll Plaza Layout

5

Investments include: Toll plaza to the west of Ngong Road; Provision of containment barriers on both sides of the

central reserve; Local improvements to the interchange slip roads; Improvements to the Nairobi National Park and

Ngong Forest perimeter fencing; Weighbridges CAPEX - 4 WIMs

Nairobi Southern Bypass

6

• Full on-line dualling of Ngong Road from the Dagoretti Corner (Junction Mall) to the Ngong Road Interchange over a total distance of 3.28km with service roads on both sides.

• Upgrading of the Dagoretti Corner junction by provision of a viaduct for through traffic city bound on Ngong Road

Widening of Ngong Road

7

Possible Additional CAPEXADDITIONAL CAPEX (M KSH)

Widening of Ngong Road 3,595.0

Interchange at Gitaru/A8 upgrade works - local Improvements 73.5

Electronic free flow toll gantries for closed system 805.0

Additional Footbridges – 8 No (CAPEX under Review) 1,864.8

Improvements to drainage and other environmental improvements 100.0

Additional fencing Around Ngong Forest 137.3

Total 6,575.6 8

Mombasa – Nairobi Road (A8) A8 is the key arterial road in Kenya Carries ~95% of all freight movement through

Mombasa Port • High transportation cost

• Three times higher cost compared to developed countries

• Transport cost of 45% of cost of goods vis-à-vis 15% in developed countries*

• Inadequate Level of Service

• Long travel times/Lower travel speed

• Increasing Congestion

• Negligible road-side facilities/amenities

A8 - Design Features The whole road is constructed to

bituminous standards

Constructed to Highway type I standards – mobility function

Cross Sections

• Road width varies between 7.0m and 14.0m excluding shoulders and central median

• With exception of newly reconstructed sections, most shoulders are 1.5m wide

Existing road alignment incorporates approximately 29 bridges and numerous box and concrete pipe culverts

Grade Separated Intersections

• Railway Over/Under passes

• Road Overpasses

Design and Operating Speeds

• Design speed =100 kmph

• Outside town - ~100 kmph possible, but passing opportunities limited

• Inside town - ~20 kmph design incorporates speed humps

Current traffic

64,950

19,81213,816

5,508 4,675 4,226 4,285

20,263

2,8528,552

JKIA –Athi

River

GPO -JKIA

Machakos T/off –Sultan Hamud

2,692

8,200 7,625

2,950

Mariakani-

Mombasa

23,236

3,423

16,917

7,305

3,020

23,008

2,746

Bachuma Gate- Maji ya Chumvi

-Mariakani

Sultan Hamud -

Mitto Andei

Mtito Andei –

Bachuma Gate

3,102

7,078

73,503

Athi River -

Machakos T/off

LV HVIn Vehicles /Day

City Traffic

City Traffic

Nairobi –unban traffic

Nairobi –urban traffic Through

Highway traffic

174 km Single Carriageway Fair to Good Road Conditions Rolling to Hilly terrain Urbanized region Part of Northern Corridor

Nairobi – Nakuru (A8)

12

• Low Level of Service: LOS-D/E

• Road Capacity reaching saturation levels. For few sections V/C > 1

• Low Speed: ~ 60 km/hr

• Poor Safety: one of the top 22 Most dangerous roads in the world

• Limited resources for upgradation and maintenance

Current Transport Challenges

0

20

40

60

80

100

120

-12 -6 0 6 12 18 24 30 36 42 48 54 60 66 72 78 84 90 96 102

108

114

120

126

132

138

144

150

156

162

168

174

Spee

d (K

mph

) Average Speed

Riro

ni

Nak

uru

Gilg

il

Nai

vash

a

13

14

Mau Summit

Njoro Rd. Jn.

Nakuru Town

Naivasha

Rironi

Gitaru

B3

B3

C88

A104

A104

To Nairobi

To Eldoret

A104

Traffic Levels

HS IVLoS D

HS IIILoS C

HS IILoS D

HS ILoS E

HS 0LoS B

10,889

A8 SouthLoS E

41,669

14,779

17,160

21,984

8,327

ADTLanes

15

Traffic composition Mau Summit

Njoro Rd. Jn.

Nakuru Town

Naivasha

Rironi

Gitaru

B3

B3

C88

A104

A104

To Nairobi

To Eldoret

A104

Cost Estimate

65 4

30

14 1125 117

Initial CAPEX Augmentation2030

Augmentation2035

Augmentation2040

Total A104 B3/C88 Grand Total

CAPEX (In KSh Billion)

Average Operating Expenditures: 1.8 KSh billion p.a.

Budget KenHA 2015 – 2016

60 KSHb

16

Upgrading Northern Corridor still competitive

2.150.24 2.39

2.71

Current Costs NorthernCorridor

Additional cost fromtolling

Total Costs NorthernCorridor

Current Costs CentralCorridor

Cost of Freight Transport Mombasa – Kampala vs DSM - Kampala in US$/km

Not even taking into account the benefits from road improvement which will reduce the current costs of the Northern Corridor

17

Operation and maintenance of Gitaru to Rironisection (12.431 Km)

Development, operation and maintenance of existing A8 from Rironi to Mau summit (174.94 Km)

Elevated Corridor in Nakuru Town

Strengthening, operation and maintenance of A8 South from Rironi to Naivasha (57.18 Km)

3 toll Charging points on existing A104 at Km 39.500(Kinungi), Km 75.200 (Gilgil) and Km 141.500(Sobeo) and 1 toll charging point on A8 South at Km 1.200 (Rironi).

Mau Summit

Njoro Rd. Jn.

Nakuru Town

Naivasha

Rironi

Gitaru

B3

B3

C88

A104

A104

To Nairobi

To Eldoret

A104

RIRONI- NAIVASHA:

18

Nairobi – Thika Superhighway Nairobi – Thika Super Highway (50.4 km)

Nairobi County (26.78 km

Kiambu County (23.62km)

Cost of development - KES 33 Billion

Super Highway opened for traffic in November 2012

O&M being done by PBC contractor @ 1.1 Billion for 2years

Scheduled to end in April 2016;

Possible extension initiated for 6 months under theprovisions of PBC Contract

19

Nairobi – Thika Super Highway

20

Traffic Analysis and Demand Forecast

67.34%3.35%

15.67%

5.49%7.23%

0.17%

0.49%

0.20% 0.07%

Traffic Composition

Car/Taxi/Auto 2-W/Boda bodaMatatu/Mini Bus Medium and Large BusLGV 2 Axle3 Axle MAV

21

Traffic Analysis and Demand Forecast

22

SUMMARY: IFPPP ROADS –VIABILITY INDICATORS

No Project CAPEXKShs bill)

Project NPV (KShs bill)

Project EIRR %

1 Mombasa - Nairobi 190 332.0 24.1%

2 Nairobi Southern Bypass

7.80 38.2 27.8%

3 Nairobi – Thika Road 4.03 35.0 29.2%

4 Rironi – Naivasha -Nakuru

117 228 20.1%

23

November 2016

Publication of RFQ Notice

March 2017

RFQ Evaluation and short-listing of pre-qualified

bidders

April 2017

Issuance of RFP documents

October 2017

Selection of Preferred Bidder

November 2017

Signing of CA

May 2017

Financial Closure

IMPLEMENTATION TIMELINES

Note: Timelines subject publication of RFQ and approvals, etc.

Investor Conference

Site Acquisition

Guarantees in place

24

Thank You