konza techno city status update

8/14/2019 KONZA TECHNO CITY STATUS UPDATE

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KONZA TECHNO CITY STATUS UPDATEBy

Catherine Adeya, PhDAg. CEO, KOTDA

[email protected]

November, 2013
mailto:[email protected]:[email protected]


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Invest in Silicon Savannah 2


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Konza Vision 2030Konza is a Vision 2030flagship project to position

Kenya as a leading ICTdestination by leveraging and

expanding Kenyas

technology focusedindustries.

KONZA


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Konza will be positioned as amid-density urban environment


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Science Parks, BPO Centres, Data Centres.

Commercial office space Hotels and Convention Centres

Real Estate residential properties.

Large scale commercial shopping malls e.g. Mall of Africa.

Recreation and entertainment venues e.g. Sports Stadium. Film and Media Centre.

Financial District.

Community support services, including health, clinics, green

space, educational institutions, houses of worship etc.

University, Research Centre .

Transportation Infrastructure.

World class ICT infrastructure.

Utilities, Roads and other infrastructure.

Investment Opportunities in KonzaTechno City


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Why KONZA

Create 200,000 jobs in BPO-ITES and

related sectors in 20 years.

World class infrastructure and

technology to facilitate research,education and business.

Kenya becomes a knowledge based

economy. Higher quality of life

EconomicBenefits


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Why KONZA Cont

SocialBenefits

Mixed urban development, class

residential and working

environment.

Enhance local R&D,

Entrepreneurship and IT enterprise

formation culture.


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The Ministry of ICT, was spearheadingthe project, engaged International

Finance Corporation (IFC) as the

Transaction Advisor. IFC hired theMaster Delivery Partner 1 (MDP1) in

August 2012 to prepare a detailed

economic development strategy and

physical master plan for Phase 1 to be

developed in the next five years

(2013-2017)

Profile

Project Profile


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MDP1 was a multi-disciplinary team


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Master Delivery Partner 1(MDP1)to prepare a detailedeconomic

development Strategy

and Physical master

plan for Phase 1 to be

developed in the nextfive years (2013-2017)

MDP1 HiredAug2012


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MDP1 Complete

Vision +

Mission

Sector

Strategy

Real Estate

Strategy

Action

Plan

GoK

Implementation

Local PhysicalDevelopment Plan(LPDP)

Business andGovernance

Master

Plan +

Design

Financial

Strategy

MDP1 Assignment Complete (Aug 2012-Feb 2013) In progress


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MDP1 Deliverables

Anchor Tenant Strategy. Local Physical Development Plan

(LPDP).

Physical Master Plan. Infrastructure Financing Plan.

Business and Cash-Flow Plan.

Governance plan for the Konza.

Technopolis Development

Authority (KOTDA).

MDP1


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MDP1 conducted intensive sector strategyand tenant outreach


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Potential Investors per region

Region No. of

Interests

Regd.

Kenya 253

Rest of Africa 21

Middle East 13

Europe 15

Asia 8

North America 3

South America 1


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This Phase establishes a framework

for the future growth of Konza16,675Direct jobs


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The Phase integrates multiple

program regions


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Hotel: 6,000 m2

Lab:35,000m2

Civic and Flex: 14,000 m2Office:

81,000m2

University:194,000m2

Lower income housing: 100,000m2

Hospital:50,000m2

Studio1 bed: 510 units

24 bedrooms 1,300 units

Retail: 65,000m2

Upper income housing: 240,000m2Studio1 bedroom: 420 units

24 bedrooms: 1,050 units

Middle income housing: 660,000m2Studio1 bedroom: 1,720 units

24 bedrooms: 4,400 units

School: 44,000m2

This Phase, with catalysts in place, could

entail 1.5M m2of total vertical development.


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Program will be distributed throughout the Stitch on

specialized bands connected by a mixed-use bar.


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Phase 1 Entry Plaza


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Phase 1 Office Band


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Phase 1 Science & Research Band


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Phase 1 Residential Band


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Phase 1 University Band


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MDP2Procurement of MDP2 completed

The two firms evaluated were: Tetra Tech, Inc (USA)

Dar Al-Handasah Consultants

(Lebanon)

Tetra Tech won and announced by

Ministerial Tender Committee (MTC)

as the MDP2 awaiting signing

Contract.

Status


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MDP2ROLE

Brand & Market

Konza

Public Realm

Guidelines

Land leases

Building Parcel

Guidelines

Financial

Analysis

Capacity

building &

Organization

Development

for KOTDA

Design

Management

Construction

Management

R l f MDP2


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Role of MDP2

MDP2 will support the development plans of the Government ofKenya and the KOTDA through the implementation of Phase 1 of

KTC.

MDP2 will supplement the capacity of KOTDA:1) Creation of Branding and Marketing Campaign for KTC

2) Public Realm Guidelines and Building Parcel Guidelines

3) Land Lease Negotiations with Parcel Developers

4) Project Financial Analysis and Summary

5) Capacity Building and Organization Development for KOTDA6) Design Management for Public Infrastructure

7) Construction Management for Public Infrastructure

K P t ti l i ti


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Konza Potential incentives(started discus sions w ith Treasury )

Potential financial policies Corporate income tax exemption

Stamp duty exemption

Employment-based grants

Tax policy to encourage headquarters establishment

VAT and duty-free import of materials for business purposes

Revisions to existing depreciation policies

Potential regulatory policies Expedited company incorporation

One-stop shop

Single window clearance

Easing of restrictions on foreign ownership and employment

I f t t ill b fi d b diff t


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Infrastructure

$1,060M

On-site

$750M

Off-site

$310M

Project Finance

Government of Kenya

KOTDA

Financing Entities

Infrastructure will be financed by different

entities, requiring key partnerships.


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Government will need to play a key rolein infrastructure delivery

KOTDA will sign land leases with vertical


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KOTDA

Property

Management

Construction

Contractor

Vertical DeveloperLand Lease Payment &

Service Fees

Commercial Life Science

Retail Residential

Target Uses

99 Year Land Lease

Management

Contract

BanksDebt

Developers equity

3rd party equity

Investor

Institutional

InvestorsDebt

Equity

Equity

EPC Contract

TenantsTenant Attraction

GoKCounties

Taxes

Taxes

KOTDA will sign land leases with vertical

developers.


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CONTACT US:Konza Technopolis Development Authority

(KOTDA)

Telposta Towers, 10th Floor, Kenyatta Avenue

P.O. Box 30519-00100

Nairobi, Kenya.

Telephone: +254 020 4920230/221

Email: [email protected]

Website: www.konzacity.co.ke
mailto:[email protected]://www.konzacity.co.ke/http://www.konzacity.co.ke/mailto:[email protected]

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