Kenya - Nairobi Outer Ring Road Improvement Project - Appraisal Report

AFRICAN DEVELOPMENT FUND PROJECT : NAIROBI OUTER RING ROAD IMPROVEMENT COUNTRY : KENYA PROJECT APPRAISAL REPORT OITC DEPARTMENT October 2013 TABLE OF CONTENTS CURRENCY EQUIVALENTS .......................................................................................................................I FISCAL YEAR ....................................................................................................................................................... I WEIGHTS AND MEASURES ................................................................................................................................... I ACRONYMS AND ABBREVIATIONS ....................................................................................................................... I LOAN INFORMATION ........................................................................................................................................... II PROJECT SUMMARY ................................................................................................................................III PROJECT OVERVIEW ........................................................................................................................................... III NEEDS ASSESSMENT ........................................................................................................................................... III BANK’S ADDED VALUE ..................................................................................................................................... IV KNOWLEDGE MANAGEMENT ............................................................................................................................. IV RESULTS-BASED LOGICAL FRAMEWORK ............................................................................................... V INDICATIVE PROJECT TIME FRAME .................................................................................................................... VI 1. STRATEGIC THRUST & RATIONALE ............................................................................................ 1 1.1 1.2 1.3 2. PROJECT LINKAGES WITH COUNTRIES STRATEGIES AND OBJECTIVES ...................................................... 1 RATIONALE FOR BANK’S INVOLVEMENT .................................................................................................. 1 DONORS COORDINATION ........................................................................................................................... 2 PROJECT DESCRIPTION .................................................................................................................. 2 2.1. PROJECT DESIGN ......................................................................................................................... 2 2.2. DEVELOPMENT OBJECTIVES AND PROJECT COMPONENTS ............................................ 3 2.3. TECHNICAL SOLUTION RETAINED AND OTHER ALTERNATIVES EXPLORED ............. 4 2.4. PROJECT TYPE .............................................................................................................................. 5 2.5. PROJECT COST AND FINANCING ARRANGEMENTS ............................................................ 5 2.6. PROJECT’S TARGET AREA AND BENEFICIARIES ................................................................. 6 2.7. PARTICIPATORY PROCESS DURING PROJECT PREPARATION......................................... 6 2.8. BANK GROUP EXPERIENCE AND LESSONS REFLECTED IN PROJECT DESIGN ............. 7 2.9. KEY PERFORMANCE INDICATORS .......................................................................................... 7 3. PROJECT FEASIBILITY .................................................................................................................... 8 3.1. ECONOMIC AND FINANCIAL PERFORMANCE....................................................................... 8 3.2. ENVIRONMENTAL AND SOCIAL IMPACTS ............................................................................. 8 4. IMPLEMENTATION ......................................................................................................................... 10 4.1. IMPLEMENTATION ARRANGEMENTS ................................................................................... 10 4.2. MONITORING............................................................................................................................... 12 4.3. GOVERNANCE ............................................................................................................................. 13 4.4. SUSTAINABILITY ........................................................................................................................ 13 4.5. RISK MANAGEMENT .................................................................................................................. 14 4.6. KNOWLEDGE BUILDING ........................................................................................................... 15 5. LEGAL INSTRUMENTS AND AUTHORITY .................................................................................. 15 5.1. LEGAL INSTRUMENT ................................................................................................................. 15 5.2. CONDITIONS ASSOCIATED WITH BANK’S INTERVENTION ............................................. 15 5.3. COMPLIANCE WITH BANK POLICIES .................................................................................... 16 6. RECOMMENDATION ....................................................................................................................... 16 APPENDIX I: COUNTRY’S COMPARATIVE SOCIO-ECONOMIC INDICATOR APPENDIX II: TABLE OF ADB’S PORTFOLIO IN KENYA APPENDIX III: RELATED PROJECTS FINANCED BY DONORS APPENDIX IV: PROJECT PROCUREMENT PLAN APPENDIX V: MAP OF PROJECT AREA Currency Equivalents As of 01.07.2013 1 UA = 1 UA = 1 UA = 1 SDR 1.50396 USD 127.58 KES Fiscal Year Kenya: 1 July – 30 June Weights and Measures 1 metric tonne 1 kilogram (kg) 1 meter (m) 1 millimeter (mm) 1 kilometer (km) 1 hectare (ha) = = = = = = 2204 pounds (lbs) 2.200 lbs 3.28 feet (ft) 0.03937 inch (“) 0.62 mile 2.471 acres Acronyms and Abbreviations ADB (AfDB) ADF AFD AIDS CBO African Development Bank KURA Kenya Urban Roads Authority African Development Fund Agence Francaise de Developpement Acquired Immune Deficiency Syndrome Community Based Organization KES KRB LC MTP Kenya Shilling Kenya Roads Board Local Cost Medium Term Plan COMESA Common Market for Eastern & Southern Africa NACC National AIDS Control Council - Kenya CSP EIRR ESAP ESIA ESMP EU FE GHG GOK GPN HDM HIV JICA JKIA Country Strategy Paper Economic Internal Rate of Return Environmental and Social Assessment Procedures Environmental and Social Impact Assessment Environmental and Social Management Plan European Union Foreign Exchange Greenhouse Gas Government of Kenya General Procurement Notice Highway Development and Management System Human Immunodeficiency Virus Japan International Cooperation Agency Jomo Kenyatta International Airport NEMA NGO NPV PAP PCR RAP RFP RSIP SPN STI UA USD VOC National Environment Management Authority Non-governmental Organization Net Present Value Project Affected Persons Project Completion Report Resettlement Action Plan Request for Proposals Road Sector Investment Program Specific Procurement Notice Sexually Transmitted Infection Unit of Account United States Dollar Vehicle Operating Costs i Loan Information Client’s information BORROWER: REPUBLIC OF KENYA EXECUTING AGENCY: KENYA URBAN ROADS AUTHORITY Financing plan Source Amount (UA) Instrument ADF LOAN 77,040,000 Loan ADF GRANT GOV. OF KENYA TOTAL COST 560,000 Grant 8,800,000 Counterpart 86,400,000 ADB’s key financing information Loan currency Interest type Interest rate spread Service Charge Commitment fee Tenor Grace period NPV (base case) EIRR (base case) Unit of Account (UA) Not Applicable Not Applicable 0.75% on amount disbursed and outstanding 0.50% on the un-disbursed loan amount 50 years 10 years USD 84.65 million 16.8% Timeframe - Main Milestones (expected) Concept Note approval Project approval by ADF Loan and Grant Agreement Signing Loan Effectiveness Last Disbursement Completion Last repayment ii June, 2013 November, 2013 January 2014 March, 2014 December, 2018 December, 2017 April, 2064 PROJECT SUMMARY Project Overview 1. The Nairobi Outer Ring Road Project is an improvement of an arterial road in the city of Nairobi, designed as a congestion-relief highway. The project road is 13km long and traverses Nairobi East and Nairobi North districts thereby, benefiting an estimated population of at least 2.2 million representing some 70% of the Nairobi County population. Other beneficiaries include users of major city connecting arterial roads of: Nairobi-Thika highway, Eastern Bypass, Northern Bypass, Mombasa Road, and onto the Jomo Kenyatta International Airport (JKIA). Key outcomes include improved accessibility to the larger populations of Nairobi Eastlands area, reduced travel time to commuters, improved air quality to travellers and residents residing closer to the roadway, improved property values arising from reduced congestion, and improved business environment for informal traders arising from new market facilities and improved sanitation. The disadvantaged youth from the informal settlements are also poised to gain from artisan training program under the project aimed at enhancing their skills to assure long-term gainful employment thereafter. 2. The expansion of the existing single carriageway road into a dual highway is expected to directly enhance the traffic circulation and eliminate bottlenecks to traffic flow to various economic activity centres such as the industrial zone, and the vast populous residential areas of Eastlands. The proposed dual carriage highway would therefore impact positively on the informal and formal businesses by providing them with improved accessibility and enhanced roadside air quality. The project road is to further enhance a secondary access to the Jomo Kenyatta International Airport, which reinforces the JKIA’s strategic role as a regional logistics hub. It is further estimated that by improving the existing road, the annual vehicular GHG emission rates in tones in the corridor would drop by at least 70% due to improved average traffic operating speeds along the project corridor particularly, with the integration of the Bus Rapid Transit System as envisaged by the year 2022. 3. The Outer Ring Road project involves improvement of the existing single carriageway road to a 2-lane dual carriageway complete with service roads, grade separated intersections, pedestrians foot over bridges, walkways and cycle tracks over the entire length of the road. Other complementary civil works elements include: 250 market stalls and associated sanitary facilities, planting of 4,500 trees along the corridor, children’s traffic safety park, and 3 Wellness centres for HIV/AIDs and related illnesses. In addition, the project shall provide artisan training to at least 500 disadvantaged youths (60% to be women) residing in the neighbouring informal settlements to enable them secure gainful employment, capacity building in traffic management to Kenya Urban Roads Authority (KURA), and JKIA design study to Kenya Airports Authority (KAA). The total cost of the project net of taxes is UA 86.4 million. The project is jointly financed by the Bank Group (89.8%) and the Government of Kenya (10.2%). The project will be implemented over a five year period (2014-2018). Needs Assessment 4. The project is aligned to Kenya’s Vision 2030 which underscores the need for increased investments in transport infrastructure under the Medium Term Plan II (20132017), as an enabler to building a robust, internationally competitive, dynamic and inclusive economy. Both economic and social pillars of the Vision 2030 and MTP II place strong emphasis on improved linkages and accessibility to national, regional and global contexts by creating a sustainable World class living and working environment. Transport infrastructure iii stock in Nairobi is less extensive and barely matches the present demand as indicated by the Master Plan for Urban Transport in the Nairobi Metropolitan Area (2006-2025). The Master Plan identified the expansion of Outer Ring Road as key to improving mobility and accessibility in Nairobi and prioritized it for improvement by the year 2012. GoK’s Sessional Paper on Integrated National Transport Policy (INTP) of 2010 indeed highlights top transport sector challenges in Kenyan urban centres (Nairobi included) as poor transport services, inappropriate modal split, and weak adherence to environmental requirements. The congestion problem in Nairobi is to partly be addressed by road network expansions, and planned development of mass transit systems, all geared at creating an urban environment that is safe, liveable and business-friendly as the Country’s future driver of growth. Bank’s Added Value 5. The Bank is best placed and experienced to successfully finance the Outer Ring Road Project, owing to its experience in partnering with the GoK to deliver the Nairobi-Thika Highway Project in 2012. The importance of the project road as part of the broader Nairobi road network is in line with the Bank’s Urban Development Strategy of 2011. The project will directly contribute to reduction of congestion in Nairobi and provide up to 2,000 local jobs, and indirectly contribute to an enabling environment for private sector investment. This project is also aligned with the Bank’s Country Strategy Paper (CSP 2008-2013) under Pillar I, which emphasizes infrastructure development for enhanced growth. Further, the Bank has a unique opportunity to demonstrate that by investing in congestion relief infrastructure, GHG emissions can sustainably be cut down to reduce the carbon ‘footprint’ in keeping with Bank’s long-term Green Growth Strategy. Knowledge Management 6. It has long been realized in transportation planning practice that expanding road capacity alone would not sustainably address congestion in cities in the long-term. Accordingly, the Bank and GoK have both agreed that the Outer Ring Road project should encompass a traffic demand management component by way of Technical Assistance focusing on simpler methods that would quickly result into improved overall traffic flow with little capital requirements. Illustrations on how improved traffic operating speeds and conditions impact on reductions in GHG emissions over time is expected to generate ideas and a framework for addressing congestion problem in other African cities facing similar challenges. The monitoring and evaluation framework under this project has been designed as a stand-alone component to provide mechanism for organizational learning to promote best practices in urban traffic management. iv NAIROBI OUTER RING ROAD IMPROVEMENT PROJECT RESULTS-BASED LOGICAL FRAMEWORK Country And Project Name: Nairobi Outer Ring Road Improvement Project Purpose of The Project: To reduce congestion so as to enhance economic efficiency of the city of Nairobi PERFORMANCE INDICATORS RESULTS CHAIN Indicator (including CSI) Baseline OUTPUTS OUTCOMES IMPACT Improved mobility and accessibility in Average travel time on the the city of Nairobi Corridor 45 mins in 2012 Improved economic and social welfare of people living along the corridor Average household income Congestion on Outer Ring Road is Volume/Capacity ratio reduced 0.8-1.2 in 2012 Local jobs created ASSUMPTIONS/RISKS/MITIGATION MEASURES Field surveys Average travel time on project road to reduce to 15 minutes by 2017 Average household incomes to increase by 5-10% by 2020 in the project zone of influence. 0.4-0.6 in 2017 Risk: Unfavourable macro-economic conditions & Nonconducive business environment Targeted area socio-economic Mitigation: Continued government and Donor support to studies infrastructure development in the Country. Field survey and Monitoring Risk: Lack of sustainability of investments in the city transport network expansion; studies; Number of jobs created for men N/A and women Improved air quality along the project GHG Emission concentrations CO2 xx(2012); corridor (CO2 & particulate matter) ppm particulate matter5 xx (2012) 2000 jobs created, at least 30% for Project progress reports women by 2017 Construction of 13km dual carriageway; Planting of 4,500 trees along the corridor; 250 market stalls; Construction of one (1) Children’s traffic safety park; 2 trading sites rehabilitated; and 3 Wellness centres established along the corridor km of road constructed; No. of trees planted; No. of Market stalls constructed; Traffic safety Park constructed; N/A No. of trading sites rehabilitated; No. of Wellness centres established by 2015, 4 km completed by 2017, 13km completed completed 100% resettlement of PAPs by 2014; by 2015 conducted HIV/AIDS, road safety and gender sensitization at least twice; All market stalls, wellness centres, & safety park completed; all trading centres rehabilitated Technical support Traffic management capacity of N/A KURA strengthened; operations management at JKIA enhanced N/A Number of youths trained in artisan courses—60% are women Capacity building completed Artisan training for youths KEY ACTIVITIES USD XX/Year MEANS OF VERIFICATION Target 30-40% reduction in CO2 Particulate matter5 in 2017 & Mitigation: GoK plans to expand Kenya Roads Board mandate to raise additional funds from the capital markets to meet road development needs for Nairobi. Project includes consultancy service to strengthen the traffic management capacity at KURA. Progress, disbursement and Risk : delay in implementing RAP financial reports from KURA Mitigation: commencing the process well ahead of Bank supervision mission reports project start. Project completion reports Risk: cost over run Mitigation: use of current cost estimates and including contingency in the project. consultancies By 2015, 150 youths trained, by 2017, at least 500 youths trained. COMPONENTS INPUTS I. Civil Works: Nairobi Outer Ring Road (13km), rehabilitation and expansion of markets and building of additional stalls, Children Safety Park, and establishment of Wellness centres – UA 72.12 million Total Cost with contingencies: UA 86.4 (USD 131.33) million II. Consultancies: Const. supervision, technical audit services, Baseline data collection & KAA Airport Study - UA 7.44 million III. Technical assistance in Traffic Management – UA 0.35 million ADF Loan: UA 77.04 million (PBA of UA 74.425million and Cancelled resources of UA IV. Skills development – UA 0.21 million 2.615million); ADF Grant: UA0.56 million (from cancelled resources); Government of III. Compensation and Resettlement – UA 6.28 million Kenya: UA8.80 million XX = data to be collected at project commencement v NAIROBI OUTER RING ROAD IMPROVEMENT PROJECT Indicative Project Time Frame vi REPORT AND RECOMMENDATION OF THE MANAGEMENT TO THE BOARD OF DIRECTORS ON PROPOSED LOAN AND GRANT TO KENYA FOR THE NAIROBI OUTER RING ROAD IMPROVEMENT PROJECT Management submits the following Report and Recommendation on proposed a loan of UA 77.04 million (UA 74.425 million from ADF12 PBA and UA 2.615 million from cancelled loans), and a grant of UA 0.56 million from cancelled resources, to the Republic of Kenya to finance the Outer Ring Road Improvement Project. 1. 1.1 STRATEGIC THRUST & RATIONALE Project Linkages with Countries Strategies and Objectives 1.1.1 Urban transport system in Kenya has in the recent past been shaped by rapid economic change and increasing rate of motorization. Transport infrastructure stock in Nairobi less extensive and barely matches the present demand as shown under the Master Plan for Urban Transport in the Nairobi Metropolitan Area (2006-2025). The Government of Kenya (GoK) launched its long-term development strategy, Vision 2030, and the second five-year Medium Term Plan (MTP II) for the period 2013-2017. Under Vision 2030, the GoK identified transport infrastructure as facilitator of rapid economic growth. The expansion of transport infrastructure networks as espoused in the MTP II is thus viewed as fundamental to socio-economic transformation. Both economic and social pillars of the Vision 2030 and MTP II place strong emphasis on the need for Nairobi metropolitan to enhance linkages and accessibility to national, regional and global contexts by creating a sustainable World class living and working environment. 1.1.2 Optimising mobility and accessibility through effective transportation is a prerequisite for creating a truly competitive business environment. For Nairobi to function as a centre of growth, it needs further development of an integrated social and economic infrastructure. An additional investment in new road facilities and traffic management measures is therefore, critical in addressing the congestion and related poor transport service problems in Nairobi. The proposed project is aligned to the objectives of the Sessional Paper on Integrated National Transport Policy (NITP) of 2010 and Vision 2030, geared at creating an environment that is safe, liveable and business-friendly as the Country’s future driver of growth. 1.1.3 The Vision 2030, the Sessional Paper on NITP and the Nairobi Urban Transport Master Plan (2006-2025) are all in line with the Bank’s Urban Development Strategy of 2011 and the Bank’s Development Strategy (2013-2022), which prioritize support to infrastructure development as a key area for the Bank’s assistance and foster private sector development via elimination of supply chain bottlenecks and reduction in costs of doing business. The project is further aligned with Pillar I of the Kenya’s extended CSP of 2008-2013, which supports infrastructure development for enhanced growth. 1.2 Rationale for Bank’s Involvement 1.2.1 Bank’s involvement on this project will contribute to decongestion of the major grid roads in Nairobi thereby easing accessibility to its main industrial zone and populous residential areas of Eastlands consequently, creating conducive environment for private sector investment in accordance with the Bank’s Urban Development Strategy. The current Master Plan for Urban Transport in the Nairobi Metropolitan Area (2006-2025) prioritized the Outer Ring Road for improvement by 2012. Having successfully financed the Nairobi-Thika highway and a number of trunk roads in the East African region, the Bank is better positioned to build on its past experience in funding additional mega urban transport project in Kenya in a bid to consolidate its vast sector and regional experience. The road serves a population of at least 2.2 million of middle-to-low income groups whose livelihoods are mostly derived from informal roadside businesses. Improved vehicle operating speeds shall significantly reduce roadside concentration of GHG emissions and as a consequence, improve air 1 quality for residents and traders. The Bank therefore, has a unique opportunity to demonstrate that by investing in congestion relief infrastructure, GHG emissions can be cut down to reduce the carbon ‘footprint’ in keeping with Bank’s long term Green Growth Strategy. 1.3 Donors coordination 1.3.1 Donor coordination in Kenya is carried out at both sector and national level through the Aid Effectiveness Group (AEG). The overall Bank collaboration with other Development Partners (DP) in Kenya was formalized in January 2007 with its entry into the Harmonization Alignment and Coordination (HAC) group set up in 2003. The HAC group currently comprises 7 donor partners. The transport sector donor group is currently co-chaired by Principal Secretary of Ministry of Transport and Infrastructure and JICA. The Bank chaired the Roads and Transport Sector Development Working Group (TSDWG) until 2010 before JICA took over the leadership of the group. The Bank is one of the leading financiers in the road sub sector in Kenya. 1.3.2 The TSDWG meets regularly to harmonize development partners’ responses and positions with respect to institutional, policy, financing and project implementation issues. The major players involved in the transport sector include: World Bank (39%), AfDB (21%), China (13%), EU (9%), AFD (8%), JICA (7%), BADEA/OFID (3%), KfW (1%), and Others (1%)—UN-Habitat and Trade Mark East Africa. The Bank’s intervention on Outer Ring road has been informed by the Study on Master Plan for Urban Transport in the Nairobi Metropolitan Area (2006-2025) funded by JICA. The main debate within the sector currently include: mobilization of financing for urban transport mass transit systems, setting up an institutional framework for managing and coordinating Nairobi Metropolitan transit systems, and reforms in governance of the transport sector aimed at aligning transport sector institutions with the New Constitutional dispensation with emphasis on devolution. Table 1.1: Average 5-Year Sector Expenditure (UA million) Sector or subsector Size Exports GDP Road Transport Cont. – Kenya* 10.1 Players - Public Annual Expenditure (average) GOK a UA 570 (64.3%) Million Labor Force Donors UA 316.4 million (35.7 %) Level of Donor Coordination Existence of Thematic Working Groups: Kenya Existence of SWAPs or Integrated Sector Approaches: Kenya ADF's Involvement in donor coordination***: Kenya * Average of the last five years(2007 – 2011) for transport and Communication; Yes Yes Member ‘a’ - the last five years average 2. 2.1. PROJECT DESCRIPTION Project Design 2.1.1 The existing Outer Ring Road is 13km long, 2-way single carriageway roadway carrying about 1040 vehicles/hour/lane (v/h/l) for a standard lane design capacity of 800v/h/l, which is 30% more than the design capacity. Traffic is thus in excess of its design capacity at peak hours. The proposed project is therefore designed as a congestion-relief highway. 2.1.2 The project road predominantly traverses a fairly densely populated urban setting with a disproportionate share of the populace being youth: 20-30 years at 46.4% and 30-40 years constituting 25.2%, mostly engaged in the informal entrepreneurial activities. The proposed project recognises 2 these activities and seeks to support them by way of providing additional market facilities, ablution facilities, artisan skills training, and rehabilitation of trading sites by paving them using appropriate mix of machine and labour-based techniques so as to enhance and sustain employment opportunities to the unemployed youth—preferably women. The project shall also provide children’s traffic safety park, HIV/AIDS counselling, sensitization and related health services to the informal operators/ inhabitants along the corridor as a means to improving the living standards and supporting their operations. 2.2. Development Objectives and Project components 2.2.1 The development objective of the project is mainly to enhance economic efficiency through improved mobility and accessibility to businesses thereby supporting economic and social development of the Nairobi city and the Country at large. The specific objective is to improve the road transport infrastructure network by expanding traffic capacity of the Nairobi Outer Ring Road to address congestion, and provision of market stalls for the informal traders (most of whom are women). This will in part, contribute to fostering inclusive growth by reducing gender related income disparities between the various income groups in Nairobi. The provision has been made for future Bus Rapid Transit (BRT) systems under the project by 2022. This will go a long way in ‘greening’ transport in the city of Nairobi, in accordance with Bank’s 10-year Strategy twin objectives of inclusive growth and green growth. 2.2.2 The components included under this project are briefly discussed here below. I. Road Construction Civil Works: This component involves improvement of the existing 13km single carriageway road to a 2-lane dual carriageway complete with service roads, 6 grade-separated intersections, pedestrians’ foot-over-bridges, walkways and cycle tracks over the entire length of the road. Complementary works include: planting of 4,500 trees, market stalls and associated sanitary facilities, children’s traffic safety park, and Wellness centres for HIV/AIDs and related illnesses. The civil works will be tendered as one (1) contract; the complementary civil works are to be undertaken by local sub-contractors. II. Consulting Services: This component includes: (i) construction supervision services for the road civil works; (ii) technical audit services; (iii) baseline data collection including HIV/AIDS prevalence, household income and road safety awareness, road safety auditing, and periodic monitoring of socio-economic development impacts; (iv) development of urban roads maintenance strategy intended to improve management of urban storm water drainage problem in Kenyan towns including Nairobi; (v) JKIA runway design study; and (vi) Airports operational management study including technology transfer in project management to Kenya Airports Authority staff. III. Technical Assistance: The traffic management technical assistance (TA) component targets improving efficiency of the entire transport system. It entails a traffic engineering consultancy on ‘quick win’ simpler methods expected to result into improved overall traffic flow without requiring significant capital intervention on the city’s transport network—main focus shall be on parking management, modifications of road configurations, and pedestrianization of streets. It shall also include development of a traffic impact assessment guideline for Kenya and training of the Executing Agency’s staff on how to conduct traffic impact assessments in practice. IV. Training for the youth: This component entails support to the youth currently working in the informal sector within the Corridor, and who have no formal training. Under the project, at least 500 youths (60% to be women) in three years shall be selected to be trained as artisans in local technical training institutions to enhance their skills to enable them secure gainful employment thereafter. 3 V. 2.3. Compensation and Resettlement: This component makes provision for the adequate compensation and resettlement of Project Affected Persons identified in the Project Environmental and Social Impact Assessment. Technical solution retained and other alternatives explored 2.3.1 The alternative project designs for the project road were evaluated with regard to traffic capacity over the project life cycle. A calibrated traffic model was used in traffic operations analysis under existing and future conditions. Existing traffic operations on Outer Ring Road is poor at Level of Service (LOS) F for the intersections and through movements. 2.3.2 Future traffic demands were projected for a 20-year horizon, assuming a different growth rate for the different vehicles type and project life period as stated in the technical annex B7-16, and a short term growth rate of 6% in the year of opening. Medium growth rate of 1.5% - 2.5% was applied for the different vehicle categories for the construction period of 2014-2016. With that growth, sectional volumes along Outer Ring Road will be as high as 2,500 vehicle/hour., assuming a lane capacity of 800 vehicle/hour. It was found that 3 lanes will be required to accommodate the future demand in each travel direction of Outer Ring Road. A short term growth rate of 6% was applied to obtain traffic volumes for the year of opening. Design options explored were as presented in Table 2.1. Table 2.1: Project Alternatives Considered and Reasons for Rejection Alternative Alternative 1 Alternative 2 Brief description Reasons for rejection Three (3) lanes design in each direction with 4  This option would improve traffic circulation as signalised intersections and 2-grade separated indicated by increased travel speeds from intersections at Juja road and Jogoo road 10km/hr. to at least 69km/hr. on the corridor but intersections to provide acceptable levels of service at significantly higher costs, which in overall at the intersections and over the entire road length reduces the economic returns (EIRR) below the with mean operating speed of 69km/hr., 12% threshold hurdle rate. corresponding to LOS A. Other interchange elements including weaving merge/diverge area and ramps would function satisfactorily. Congestion Pricing entailing establishing toll booths  Whereas such initiative has worked in cities on the existing busy Outer Ring Road and charging elsewhere in the developed World, the extent of users reasonable fees enough to manage traffic congestion relief arising from it is difficult to demand on the road. quantify; further, the willingness-to-pay by the current road users and population directly served by the road is considered very low and would in essence serve to disenfranchise majority urban poor by severely undermining their mobility and accessibility to economic activity locations. 2.3.3 The analysis for Alternative 3 involving a design for two (2) lanes per direction with all the 6 junctions and roundabouts improved to grade separated intersections with a provision for Bus Rapid Transit (BRT) by 2022 has been adopted for the project road. The design will provide higher levels of service A up to the year 2032. The Road will operate as an expressway with mean speed of 80km/hr. The Jogoo Road interchange elements including ramps (loops), weaving and merge/diverge areas would also function satisfactorily. 2.3.4 The adopted alternative demonstrates the decongestion benefits over the do-nothing scenario based on the traffic simulations carried out, which confirms that congestion in the corridor would be fully ameliorated. The adopted technical solution is supported by best international practices using traffic simulations and is consistent with state of development in the Country. 4 2.4. Project type 2.4.1 The ADF financing will support improvement of the identified road project and related services. The investments against which funds are to be disbursed are well defined and specific. Therefore, a mix of ADF loan and grant is considered as the most appropriate instruments for the intervention of the Bank in this operation. 2.5. Project cost and financing arrangements 2.5.1 The overall project cost estimate (net of taxes) is UA 86.40 million (USD 131.33 million) of which the foreign cost is UA 60.00 million (USD 91.20 million) or 69% of the total, and the local cost is UA 26.40 million (USD 40.13 million) or 31% of the total. The project cost estimate is based on feasibility and detailed design studies of the project considering unit prices of similar recent and ongoing international tenders in Kenya. The project cost estimates by component and by category of expenditure are indicated in Table 2.2 and 2.3 respectively. Table 2.2: Project Cost Estimates by Component (Net of Taxes) (UA million) Component I. Road Construction Civil Works II. Consultancies & Technical Audit III. Technical Assistance IV. Training for Youth Empowerment Total Base Cost Physical Contingency (5%) Price Contingencies (7.5%) V. Resettlement & Compensation Total Foreign Cost Local Cost Total 48.07 5.29 0.25 0.15 53.76 2.67 3.57 0.00 60.00 16.04 1.32 0.06 0.04 17.46 0.89 1.77 6.28 26.40 64.11 6.61 0.31 0.19 71.22 3.56 5.34 6.28 86.40 % foreign 75 80 80 80 75 0.00 69 2.5.2 The proposed project will be co-financed by the Bank Group and the GOK. The Bank financing will be in the form of ADF loan amounting to UA 77.04 million and ADF grant amounting to UA 0.56 million, representing 89.8% of the total project cost (net of taxes). The GOK counterpart contribution amounts to UA 8.80 million representing 10.2% of the overall project cost (net of taxes). Table 2.3: Project Cost by Category of Expenditures (UA Million) Category Works Services Total Base Cost Foreign Cost Local Cost Total Cost % of foreign 48.07 5.69 53.76 16.04 1.42 17.46 64.11 7.11 71.22 0.75 0.80 0.75 Physical Contingency 2.67 0.89 3.56 Price Contingency Miscellaneous Total Project Cost 3.58 0.00 60.00 1.76 6.28 26.40 5.34 6.28 86.40 0.00 2.5.3 The ADF resources for the project will come from the ADF 12 Performance Based Allocation (PBA) for Kenya of an amount UA 74.425 million, Redeployment from Cancelled resources of the amounts of UA 2.615 million as loan and UA 0.560 million as grant. The Bank will cover 100% of foreign cost and 66.6% of the project local cost. The financing plan of the project and source of ADF financing are summarized in Table 2.4. The expenditure schedule by component is also presented in Table 2.5. Detailed costs and expenditure schedules are provided in Annex B1. 5 Table 2.4: Sources of Financing (UA million) Source of Financing Foreign Currency Cost Local Currency Cost 59.55 0.45 0.00 60.00 17.49 0.11 8.80 26.40 ADF loan ADF grant GoK Total Project cost Total Costs 77.04 0.56 8.80 86.40 % Total 89.2 0.6 10.2 100 Table 2.5: Expenditure Schedule by Component (UA Million) I. Road Construction Civil Works 2014 7.22 2015 25.96 2016 25.96 2017 12.98 Total 72.12 II. Consultancies & Technical Audit 0.71 2.22 2.28 2.23 7.44 0.17 0.18 - 0.35 component III. Technical Assistance 0.07 0.07 0.07 0.21 V. Resettlement & Compensation 6.28 - - - 6.28 Total Base Cost 14.21 28.42 28.49 15.28 86.40 IV. Training for Youth Empowerment 2.6. Project’s target area and beneficiaries 2.6.1 The project is a 13 km-long Outer-Ring Road located in Nairobi City County traversing districts of Nairobi East and Nairobi North directly serving a population of 2,2 million—constituting about 70% of Nairobi City County population. In addition to this population, there are other beneficiaries mainly users of major connecting corridors such as the Nairobi-Thika Highway, Eastern Bypass road, Kangundo Road, Northern Bypass road, Mombasa Road, and the Jomo Kenyatta International Airport. The key outcomes include improved accessibility to the larger population of Eastlands area of Nairobi, commuters to be relieved from endemic congestions as a result of reduced travel times on the project road, industries whose commodity deliveries would be more reliable due to elimination of bottlenecks on the roadway, direct and indirect jobs created during construction and operation, beneficiaries of the complementary initiatives including increased property values due to improved corridor operating environment, and overall contribution to improved business environment in the city. Further, the project would provide market facilities for the informal traders along the corridor and artisan training to the youth from the neighbouring slums currently working in the informal sector but lacking formal training to assure sustainable employment opportunities to them. 2.7. Participatory Process during Project Preparation 2.7.1 The Government of Kenya requested for financial assistance from the Bank towards the improvement of Outer Ring Road in August 2012. The Bank thereafter held consultations with the executing Agency (KURA) during the supervision mission of the December 2012, to assess the level of preparedness and prioritization of the project road. Further, public and stakeholder consultations for the proposed road project were held during the ESIA and RAP preparations. These consultations captured the major concerns associated with the project from all concerned and interested parties which included representatives of community based associations such as the Transporters Association, the Traders (Jua Kali) Associations, Market Owners, Parents Association (Schools), Athi Water Services Board, Nairobi City County, Kenya National Highways Authority, Civil Society Organisations (CSOs). Consultations ensured that both women’s and men’s views were taken on board in the project design, resettlement and compensation issues and issues of concern during project implementation. Some of stakeholders will further be represented in the Project Oversight committee (POC) to help oversee smooth implementation of the project. 2.7.2 In addition to fruitful consultations with the stakeholders, during preparation and appraisal of the project, the Bank also held discussions with delegation of the EC, the World Bank, and JICA representatives in Kenya regarding lessons learned on completed and on-going projects, and policy 6 coordination in the sector with regard to monitoring and supervision of projects under implementation. A summary of issues raised during consultation is provided in Technical Annex B8. 2.8. Bank Group experience and lessons reflected in project design Status and Impact of Prior Bank Intervention in the Sector 2.8.1 The Bank Group has since 1967, financed 22 operations in the transport sector in Kenya amounting to UA 805.64 million. Out of the cumulative amount, 14.6% contributed to the improvement of urban transport in Kenya under the Nairobi–Thika road improvement project, which has had a considerable positive impact on congestion in the city of Nairobi. Completed projects include: rehabilitation of 2,000km of rural access roads and trunk roads. These contributed to improved agricultural productivity and regional integration. The Bank currently has five on-going road projects: Timboroa-Eldoret road, Mombasa-Nairobi-Addis Ababa road projects Phases II&III, Athi River-Namanga road, Mwatate-Taveta road project, and Mass Rapid Transit System (MRTS) study for Nairobi metropolitan. The road projects are aimed at enhancing regional trade and fostering economic integration in East Africa whereas the MRTS is to address congestion in the city of Nairobi. The completed projects generally had long project start-up delays, and time overruns owing to factors such as: underestimation of project durations, late compliance with loan covenants by the GoK, and lengthy procurement procedures, and delayed payment of counterpart funds by the Government. Disbursement status of on-going projects is attached as Appendix II. Nairobi-Thika Improvement Project was completed in December 2012 and the PCR is under preparation. The current progress rating for transport portfolio is on average satisfactory with no project rated as PP or PPP. Lessons Learned and Reflected in Project Design 2.8.2 The project design has taken into account lessons learned from the on-going projects as well as previous interventions of the Bank and other donors active in the transport sector in Kenya. The specific lessons from a similar project, the Nairobi-Thika Highway project, and which have been incorporated in the proposed project design include: consideration for road safety audit of designs and safety awareness during construction to minimize road crashes, clearance of Right-of-Way (RoW) prior to start of civil works to avoid construction delays and time overruns, reasonable project duration, and establishment of Project Oversight Committee (POC) comprising of stakeholders from various Government departments and NGOs to facilitate timely decision making during project implementation. 2.8.3 The Bank has also reduced the number of conditions to be met prior to first disbursement, and continues to increase its share of the project financing to mitigate delayed payments of counterpart funds. In a bid to reduce project start and implementation delays, the Outer Ring Road Project adopts Advance Contracting procedures. 2.9. Key performance indicators 2.9.1 The achievement of the project objectives will be measured by the following indicators: (i) reduced congestion to acceptable level; (ii) improved air quality along the project corridor; and (iii) increased household incomes of people in the project area of influence. Indicators for monitoring and evaluating project outcomes are included in the Project Logical Framework. 2.9.2 The project design has provided for a consultancy component dealing with baseline and periodic data collection and analysis as a basis for monitoring and evaluation of project objectives and outcomes during implementation. Other additional data shall include: transport cost and travel time for specific types of vehicle and trip, accident data, jobs created in the construction and related activities, gender differential in roles and responsibilities, and HIV/AIDS prevalence. The indicators will be measured at project inception, mid-term and completion, and three years later. Where relevant, indicators will be disaggregated by gender. 7 3. 3.1. PROJECT FEASIBILITY Economic and financial performance 3.1.1 The methodology for the economic analysis is based on cost benefit analysis by comparing the “with” and “without “ project scenarios over a period of 20 years, using the Highway Development and Management Model (HDM-4). A discount rate of 12%, a standard conversion factor (SCF) of 0.80 for converting financial costs to economic costs, a residual value of 20% and upgrading period of 3 years (36 months) starting June 2014 were adopted. The economic costs consist of (i) the capital investment costs and (ii) the routine and periodic maintenance expenses. The benefits consist of savings in (i) vehicle operating costs; (ii) motorized traffic travel time for passengers and cargo; (iii) non-motorized traffic travel time for passengers and cargo; and (iv) reduction in road maintenance costs. The measures of assessing project viability used are the EIRR, and NPV. Details of Traffic and Economic Analysis are presented in Technical Annex B7. The summary of the economic analysis for the selected pavement intervention is presented in Table 3.1. Table 3.1: Key Economic and Financial Figures 16.8% EIRR(Base case) US$ 84.65 million NPV (12% Discount) 12.8% EIRR (+20% costs & -20% benefits) 3.2. Environmental and social impacts 3.2.1 The project is classified as Category I according to the Bank’s ESAP. The Project involves large scale road construction in a fairly densely populated urban setting. Although the length of the road is only 13 Km long, the proposed project involves new construction of a dual carriageway road in a corridor that previously had a single carriageway. The proposed project intervention will lead to loss of productive assets (business premises, etc.) for certain socio-economic groups in particular for women, some urban poor and vulnerable groups along the project corridor. The number of affected persons exceeds 200 persons. A summary of the ESIA and RAP have been prepared and were disclosed on 11 July 2013. Environment 3.2.2 The most significant adverse impacts of the project at pre-construction includes loss of business to 445 informal traders (Hawkers and petty traders) with temporary shelters along the project corridor; land take and loss of assets for 177 properties within the construction corridor. During construction, the key impacts includes (i) traffic delays and disruption in a road corridor that carries annual average daily traffic of more than 20,000 vehicles; (ii) disruption of public utilities especially, water supply, sewerage and electricity; (iii) risk of accidents both construction and traffic accidents; (iv) noise, dust and vibration. 3.2.3 Adequate mitigation measures for adverse impacts have been identified and included in the ESMP. These include (i) compensation and relocation of project affected persons; (ii) development of detailed traffic management plans to guide traffic during construction; (iii) development of utilities relocation plan and effective liaison with utility providers to ensure minimal damage and disruption of services; (iv) road safety awareness and sensitization to reduce the risks of accidents; (v) inclusion of the necessary environmental clauses in the project construction tender document so as to ensure the implementation of the ESMP (vi) ensure independent environmental supervision during construction phase. The total ESMP implementation cost is estimated as KES 12,000,000 whereas the compensation and relocation is estimated as KES 794,966,000. 8 3.2.4 Positive impacts include (i) reduction in Green House Gas (GHG) emissions; (ii) reduction in travel time and cost of travel; (iii) reduction in traffic congestion in the city; (iv) creation of employment; (v) improved access to social services; and (vi) increased land value along the corridor. Climate Change 3.2.5 The project as designed will contribute significantly to climate change mitigation through improved traffic flow and reduction in GHG emissions. Currently an average daily traffic of more than 20,000 vehicles traverses the corridor. By the end of the road design life of 20 years the average daily traffic is projected to be more than 55,000 vehicles. The current GHG emissions in tons per year are Volatile Organic Carbons (VOC) – 413, Nitrogen Oxides (NOx) – 345, Carbon monoxide (CO) – 1,605. The projected emissions without the project intervention in 20 years’ time in tons per year are VOC – 1,131, NOx – 942 and CO – 4,389. The project will reduce the emission by year 20 to below 2012 emissions, in tons per year; VOC – 334, NOx – 445 and CO-1,041. Adaptation measures incorporated in the design includes the: tree planting in relation to sequestering carbon emissions from road traffic and use of appropriate flood return periods for the sizing of bridges, culverts and longitudinal drains. Further, the design has provided for drainage structures in sections along the corridor that experiences flooding particularly, closer to Mathari River and Ngong River. Gender 3.2.6 Gender equality and women empowerment is being enhanced in this project based on lessons learnt from Nairobi-Thika road project. Project design has specific provisions regarding participation of women during implementation. There is strong emphasis to ensure that more women shall be given opportunities to work at the construction site. Accordingly, a quota of 30% will be targeted at women recruits in accordance with the New Constitutional dispensation requirement on gender parity. A project Specific Gender Plan of Action is to be prepared by the Executing Agency at implementation to enhance understanding on the gender dimensions of road infrastructure development by identifying gender specific barriers; and to determine how to address the different needs and dynamics of women and men in the project area. The design includes measures aimed at improving the work environment for women by ensuring provision of ablution corners, dedicated for women, code of conduct to prevent abusive language and unwanted approaches at the work place. 3.2.7 Among the negative results of expanding the road to four lanes will be relocation of road side market operators and traders (36.2% of hawkers are women). As a mitigation measures, the project will create 250 additional market stalls and expand the existing 8 markets belonging to the County to accommodate the affected persons. The Council will give equal opportunity between men and women in allocating the additional space. Furthermore, the project will implement an artisanal training program for at least 50 disadvantaged youth in the project area 60% of whom will be young women— participants to be selected collectively by NACC, KURA and NGOs working in the area. Although there is no plan to set up workers camp, the project will implement an awareness program on curbing the spread of HIV/AIDS and STI among workers and communities focusing on women and girls who statistics show have a higher (national) prevalence rate of 6.9% compared to men at 4.4 % (2012). Social 3.2.8 The major positive impact arising from the project road is the relief in traffic congestion and access to facilities which will translate into reduced time of travel and vehicle operating cost. These factors will directly contribute to economic gains thereby reducing poverty to the extent that economic activities increase. The project road constitutes a secondary collector road for traffic from the populous residential suburbs and industrial zones of Ruaraka and Baba Dogo, distributed onto the main highways of: Nairobi-Thika highway, Eastern Bypass road, and Mombasa Road through to the Central Business District. The project road provides a more direct route to the United Nations Headquarters at Gigiri for traffic from the international airport, avoiding the congested Uhuru Highway and the Eastern By-Pass. During construction approximately 2000 direct jobs shall be 9 created with many more through material suppliers for works and during operations. While relocation shall cause hardship in the short run, in the long-run the opportunities to be created through the relocation plan, which entails provision of additional space and better facilities for business is expected to increase. The training program for the youth, under the project will widen opportunities of well-paying jobs and self-employment. 3.2.9 The spread of HIV/AIDS and STI is a matter of concern to the nation as a whole although the prevalence went down between 2007 and 2012 from 7.2% to 5.6% with a project area proxy of 4.9% (2012). Among the mitigation measures, the project has incorporated in its design the establishment of three (3) Wellness Centres along the project road. The program shall be implemented in collaboration with the National Aids Control Council (NACC) and an NGO, IOM which is currently working on HIV/AIDS mainstreaming in Nairobi City with the Ministry of Health and the National Aids Control Program (NASCOP). The fear of increased accidents both during construction and operation was expressed at pubic consultations. The road design has been subjected to safety audit as a way of identifying and correcting for unsafe road features before implementation. Further, enforcement of road signage and clear demarcation of diversions shall be part of the traffic management plan to be issued to the contractor by the GoK to assure traffic safety compliance on work site. Additional measures aimed at curbing road carnage during construction and in operation include: Traffic safety campaigns to be undertaken in collaboration with National Transport and Safety Authority (NTSA); provision of separate walkways, removal of markets off road reserve, construction of foot-overbridges, and construction of School Traffic Safety Parks for inducting awareness and safety practice to children. Involuntary Resettlement 3.2.10 The expansion of the existing single carriageway Outer Ring Road to a dual carriageway road is expected to affect approximately 445 informal businesses (garages, furniture shops, building materials and hardware, car sale yards, car wash, metal fabrication), hawkers and traders. Additional 177 properties will be affected by the road widening and will require relocation and compensation. For most of the market operators, the expansion of the existing 8 markets under the project would adequately accommodate the affected persons. The project will implement a RAP which has been prepared in compliance with the Bank’s Involuntary Resettlement Policy and a budgetary provision of KES794,966,000 has been factored in as part of project cost. 4. 4.1. IMPLEMENTATION Implementation Arrangements 4.1.1 Executing Agency: The Kenya Urban Roads Authority (KURA) will be the main executing agency for the project whereas Kenya Airports Authority will be the executing agency for the airport components consisting of: runway design study for the JKIA and the airports operational study. The two agencies fall under the Ministry of Transport and Infrastructure, coordinated by one Cabinet Secretary. They are well structured with adequate number of qualified and experienced technical staff to implement projects of such size and complexity. KURA and KAA have experience in implementing projects financed by bilateral and multilateral donors such as EU and the World Bank. The executing agencies have been assessed and considered competent enough to conduct procurements and reporting requirements envisaged under the project. The Bank and other donors have financed on-going training and Technical Assistance to KURA aimed at strengthening its capacity to implement projects. In addition, the KURA recently recruited additional senior project engineers, procurement experts, environmental and social experts, and transport economists in response to their increasing project portfolio. The environmental and the transport economist recently hired are to be deployed to the Outer Ring Road project team to oversee Monitoring and Evaluation aspects under the project, and to help the project engineer in regularly updating the RBLF. 10 4.1.2 The Director General of KURA shall designate a project coordinator for the day-to-day management of the project. The CEO of KAA will also assign a Project Engineer for the components to be executed by KAA. Project Oversight Committee (POC) made up of representatives from relevant stakeholders from the Government and private sector institutions shall provide overall coordination of the project, particularly, assisting with relocation of services from the Right-of-Way. The POC will be chaired by the Principal Secretary, Infrastructure, Ministry of Transport and Infrastructure. 4.1.3 The road works will be undertaken by competent and experienced civil engineering works contractor, while the supervision of the civil works will be undertaken by experienced engineering consulting firm, all to be procured competitively. The Consultant in collaboration with KURA’s Social and Environmental Expert will supervise and monitor implementation of the environmental and social management plans including the implementation of RAP. 4.1.4 Procurement: All procurement of works and acquisition of consulting services financed by the Bank will be in accordance with the Bank's “Rules and Procedures for Procurement of Goods and Works”, and “Rules and Procedures for the Use of consultants” both dated May 2008 and revised July 2012. All procurements shall be based on the relevant Bank Standard Bidding Documents and Request for Proposals. The project Procurement Plan has been prepared by the Executing Agencies and approved by the Bank, copy is attached in Annex B5. The Government has requested for the use of Advance Contracting procedure for road civil works, project supervision, and technical audit consultancy services, as a way of limiting project start delays. 4.1.5 KURA will be responsible for the procurement of works and roads related consultancy services, whereas KAA will be responsible for airport related consultancy services. The resources, capacity, expertise and experience of KURA have been assessed and found to be adequate to carry out the procurement activities required for the project. Since KURA is a relatively young institution having been established in 2007 as an autonomous authority, there is a need to further strengthen the institution and its technical staff particularly, with regard to procurement skills. Toward the same, the Bank conducted a 3-day training session for KURA technical and procurement staff early in 2013 on Bank’s Procurement Rules and Procedures. Further, KURA recruited in July 2013, four (4) procurement experts including a Chief Procurement Officer, which has significantly strengthen their procurement capacity. 4.1.6 Financial Management and Disbursement Arrangements: The project’s financial management transactions will be managed within the existing set-up at KURA.The Financial Management (FM) capacity of KURA and KAA have been assessed as adequate for purposes of carrying out the FM of the project. KURA has thirty one (31) accountants in its finance department headed by a General Manager in charge of Finance & Administration. Overall day-to-day FM operations are overseen by a Finance Manager. The finance department comprises of Chief Accountant, three Senior Accountants and three Account Assistants based at the Head Office and in ten regions spread across the country each has a Regional Accountants assisted by Accounts Assistants and are in charge of all aspects of accounting and financial management as laid out in its Financial Policies, Guidelines and Procedures Manual. KURA is currently finalizing on the implementation of Microsoft Dynamics Ax 2012 ERP which also includes a Project Module to align it with the Public Financial Management Act 2012. Financial Control risks were assessed by the Bank financial management experts and adjudged moderate. 4.1.7 In keeping with the Paris Declaration on Aid Effectiveness and Accra Agenda for Action, the project will make use of the Kenya’s public financial management systems. KURA will prepare quarterly financial reports and send to the bank no later than forty five (45) days after the end of each quarter. The project financial statements will be prepared within three (3) months after the closure of every financial year and presented to the auditors by 30 September. The project financial statements 11 will be audited by the Auditor General based on the Bank’s audit terms of reference. The complete audited project financial statements (including a management letter and responses) will be submitted to the Bank within six (6) months of the end of the financial year. In addition, value for money audit (VfM) is incorporated under the technical audit services to ensure that funds will be used for intended purposes with due regard to economy and efficiency. 4.1.8 KURA’s finance department is responsible for consolidating the organization’s overall budget. All the departments prepares their own annual budget estimates which are based on individual activities and in accordance with the budget ceilings as advised by the Ministry of Transport and Infrastructure .After approval by KURA’s Board of Directors, the consolidated budget is then submitted to the National Treasury through the line Ministry for inclusion into the National budget. 4.1.9 Budget monitoring by the finance department is done both internally and externally. Internally, through the requisition level, where monitoring is done through commitments on budget line items. Monitoring is also done at the Finance department where every month, a variance report is generated and communicated to the various user departments for information and corrective actions. Externally, every quarter, KURA communicates its budget performance to the Board of Directors, Kenya Roads Board and Ministry of Transport and Infrastructure. 4.1.10 KURA has an Internal Audit department headed by a manager who reports to the Board of Directors and administratively to the Director General. This department has six auditors including one technical auditor. This department will play an important role in conducting regular project internal audits with the reports shared with the Bank as needed. The Kenya Roads Board also conducts audits on funds disbursed for maintenance twice a year to ensure its funds are utilized efficiently. 4.1.11 With regard to disbursement, KURA and KAA will utilize the Bank’s Direct Payment method for all components except artisan training where Special Account method is preferable, as explained in the Disbursement Handbook. These methods will be used for payments to contractors or service providers upon recommendations of their satisfactory performance by the project authorized consultant and officials. The Bank’s Disbursement Letter will be issued stipulating key disbursement procedures and practices as it relates to these methods. Further disbursement details are provided in Annex B3 4.2. Monitoring 4.2.1 The overall procurement, project supervision and monitoring falls under the Director General of KURA and the Managing Director of KAA regarding the implementation of airport studies. The authorities are well organized with qualified and experienced professionals. KURA will assign a project coordinator for the close follow up and timely response to correspondence forwarded from the Consultants and Contractor. The Authority will attend tripartite monthly progress meetings and conduct site visits to discuss and address issues related to progress of works. KURA shall also be responsible for monitoring the Result Based Logical Framework in consultation with appropriate institutions. The monitoring of environment and social mitigation measures will lie with Environmental and Social Unit of KURA and the National Environmental Management Authority (NEMA). On the Financial Management and Auditing aspects, the existing accounting and reporting systems of the authority meet the Bank’s minimum requirements to provide, with reasonable assurance, accurate and timely information on the status of the project required by the Bank. In addition to the Bank’s implementation support and review of the performance of the project through periodic visits and during the mid-term review, KURA will produce Quarterly Borrowers Progress Reports and submit to the Bank. The Bank’s implementation monitoring time frame is indicated in Table 4.1. 12 Table 4.1 – Implementation Monitoring Timeframe Q2 – 2014 Project Launching Monitoring process / feedback loop Supervision and Progress Report Q2 – 2014 Procurement of Civil Works Completed Procurement Plan/Progress Report Q4 – 2015 50% of Civil Works completed mid-term review Midterm Review & Progress Report Q2 – 2017 Substantial completion of civil works Supervision and Progress Report Q2 – 2018 Q4 – 2018 End of Defects Liability period Project Completion Supervision and Progress Report Project Completion Report Timeframe 4.3. Milestone Governance 4.3.1 The project will be implemented by KURA using the Country’s PFM systems hence it will adopt all the Governance and Anti -Corruption policies and guidelines of the Country. Board of directors of KURA will provide an oversight role with a mandate from the Ministry Transport and Infrastructure. The Bank will provide some oversight especially during supervision missions and follow up meetings. KURA has set Guidelines on Corporate Governance and all Board Members are committed and support all the issues articulated in the Corporate Governance Guidelines. All the AntiCorruption measures that pertain to KURA and the Government will apply to this project. KURA also has an anti-corruption prevention committee with members from each department. This committee meets regularly to review areas of exposure and handles any reported cases of corruption. 4.3.2 The specific governance risk mitigation measures of the project include: (i) the appointment of independent Auditor with approval of Auditor General’s Office to ensure that funds are used efficiently and for the intended purposes; and (ii) Bank prior review and approval of all project procurement activities. 4.4. Sustainability 4.4.1 Project sustainability depends on the quality of works executed. It will also largely depend on Government’s capacity to plan, finance and carry out routine and periodic maintenance on a timely basis. Further, implementation of effective axle-load-control programs to prevent overloaded trucks from damaging road assets is imperative. 4.4.2 The Government has identified transport infrastructure development as one of the priority focus areas for medium term action to attain the objectives of Vision 2030. Kenya Roads Board (KRB), which was established in 1999, has ring fenced financing (from fuel levies and transit fees) for road maintenance. The Kenya Road Maintenance Fuel Levy is managed by KRB and the Fund revenue has increased annually on the average by 12.5% from KES 7.74 billion (USD 101.8 million) in 2002/03 to 24.2 billion (USD 291.6 million) in 2011/12 in USD terms. The increase in the fuel levy by 55% (from KES 5.8/litre to KES 9.0/litre) in 2006 has doubled the Road Fund Revenues and shows the commitment of the Government to the sustainability of the roads subsector. 4.4.3 Furthermore, the road sub-sector has undergone reforms through the Roads Act 2007, which led to the establishment of three road authorities for the management, financing, and maintenance of roads, namely: KeNHA, KeRRA and KURA. These were primarily meant to enhance the sustainability of the road investment in the country. To date, private contractors in Kenya carry out nearly 100% of the routine and 95% of periodic maintenance of the national network. KURA has been mandated to manage the urban road network, including the maintenance with financing from the Road Fund. KURA contracts out the entire routine and periodic maintenance to the private sector, thus enhancing the development of the domestic contracting industries, which is a good indication toward the sustainability of investment in the road sub-sector. The maintenance of the project road is to be outsourced under performance based contracting, after the defect liability period. Furthermore, KURA 13 is trying to protect the investment by improving the enforcement of the axle load control for vehicle passing through the towns. 4.4.4 As mandated by the Kenya Roads Act 2007, Ministry of Transport and Infrastructure (MoTI) has issued the Road Sector Investment Program (RSIP) (2010-2024) to guide the development and maintenance of the road sub sector. According to RSIP, it is estimated that about KES 40 billion is required for the maintenance of the entire road network annually and periodic maintenance of KES 111 billion. Analysis of road maintenance funding shows that sufficient funds are available to cover routine maintenance of the road network in good and fair condition, from the road fuel levy tax. This does not include the backlog maintenance. In the medium to long term, GOK is considering widening the road user charging system by incorporating long term infrastructure bonds based on its successful usage in South Africa since 2008, public private partnerships, and upward revision of road maintenance levy fund charges, targeted charges on heavy commercial vehicles, fees from road reserve management, weight distance charges, vehicle license fees, traffic offence charges and parking fees. 4.4.5 With respect to the project, maintenance of the completed sections will be the responsibility of the project contractor during the construction phase and defects liability period. After completion, KURA will be responsible for maintenance of the road through financing from the Road Fund. KURA plans to outsource the maintenance under performance based contracting. The financial requirement for routine maintenance amounts to KES 38.2 million (USD 0.46 million) per year, starting 2018 and KES 2.0 billion (USD 24.0 million) for periodic maintenance in 2024. The impact of the project maintenance costs on Governments’ recurrent costs will not be significant as the GoK has sufficient capacity to carry out the project’s routine and periodic maintenance. Implementation of the measures above will thus ensure sustainability of the road sub-sector. Annex C1 gives details of road network financing needs and revenues. 4.5. Risk management 4.5.1 The design of the project assumes several risks which might affect the attainment of project objectives. The risks and mitigation measures are discussed as follows: 4.5.2 Impact Risk: Unfavourable macro-economic conditions and Non-conducive business environment in Kenya is likely to undermine private consumption due to high inflation arising from high electricity and fuel costs. The GoK has embarked on active management of power tariffs to curb unnecessary increases in energy costs and strongly emphasizes fast-tracking of proposed infrastructural developments and accelerated budget execution. These measures are intended to spur growth and expand the economy to facilitate lower debt to GDP ratio resulting in increased aggregate demand and investor confidence. 4.5.3 Outcome Risks: Lack of sustainability of investments in the city transport network expansion will undermine the needed capacity to meet the traffic demand in the long-term thereby reducing the chronic congestion on grid road network in Nairobi. Continued prioritization of investments in the Country’s transport infrastructure in the national budget by the Government coupled with continued donor support to infrastructure development, and GoK’s plans to raise additional funds through infrastructure bonds will no doubt bridge the funding gap needed for sustained investments in the city transport network. 4.5.4 Output/implementation Risks: (i) Delay by Governments in the implementation of RAP may cause delays in the project. The existence of well-prepared RAP and the Government’s commitment to start the process of compensating the PAPs well before project start will significantly minimize this risk. 14 (ii) Cost Overrun: is another risk which the project is likely to face. This risk is being mitigated by use of recent data for cost estimation and provision of adequate contingencies within the cost estimates. 4.6. Knowledge Building 4.6.1 Congestion problems cannot sustainably be addressed by building new roads and expansion of roadway capacity alone. There is need for improved traffic demand management practice to complement physical measures aimed at tackling traffic congestion. Toward this end, a technical assistance service has been provided for under the project focusing on simpler methods to secure quick wins for improved overall traffic flow and that would not require significant capital intervention. Other output under the component includes development of a guideline to assist KURA in assessing traffic impacts arising from new developments within the urban areas and in-house training for engineers on how to manage traffic demand in practice and undertake traffic impact assessments. Illustrations on how improved traffic operating speeds and conditions impact on reductions in GHG emissions over time is expected to generate ideas and a framework for addressing congestion problem in other regional cities facing similar challenges. The monitoring and evaluation framework has been designed as a stand-alone component to provide mechanism for organizational learning to promote best practices in urban traffic management. 5. 5.1. LEGAL INSTRUMENTS AND AUTHORITY Legal Instrument 5.1.1 The Bank instruments to finance this operation are an ADF loan of UA 77.04 million and an ADF grant of UA 0.56 million, both on standard ADF terms and conditions. 5.2. Conditions associated with Bank’s intervention (A) Conditions Precedent to Entry into Force of the Loan and Grant Agreements: The entry into force of the Loan Agreement shall be subject to the fulfilment by the Borrowers of the conditions set forth in Section 12.01 of the Fund’s General Conditions Applicable to Loan Agreements and Guarantee Agreements (Sovereign Entities), while the Protocol of Agreement for the Grant will enter into force subject to the fulfilment by the recipient of the provisions of Section 10.01 of the General conditions Applicable to Protocols of Agreement for Grants of the Fund. (B) Conditions Precedent to First Disbursement of the Loan: The obligations of the Fund to make the first disbursement of the loan shall be conditional upon entry into force of the Loan Agreement as stated in paragraph 5.2(A) above and the provision of evidence by the Borrower, in a form and substance satisfactory to the Fund, of the fulfilment of the following condition: (i) The Borrower having submitted a schedule (the “Works and Compensation Schedules”) detailing inter alia, (A) the sections into which the contract for the civil works will be divided and (B) a timeframe for the compensation of the Project Affected Persons (PAPs) with respect to all such sections, in each case, in form and substance satisfactory to the Fund; (C) Conditions Precedent to First Disbursement of the Grant: The obligations of the Fund to make the first disbursement of the Grant shall be conditional upon entry into force of the Grant Agreement as stated in paragraph 5.2(A) above and the provision of evidence by the Grant Recipient, in a form and substance satisfactory to the Fund, of the fulfilment of the following condition: (i) The Grant Recipient having opened a foreign currency Special Account for the receipt of the Grant funds. (D) Other Condition applicable to the Loan. The other condition applicable to the loan is: (i) The Borrower will provide evidence, in form and substance acceptable to the Fund, that prior to commencement of construction on any section of any lot of the civil works, all Project Affected 15 Persons have been compensated and/or resettled with respect to the relevant section of the relevant lot in accordance with the RAP and any updates to the RAP as well as the Works and Compensation Schedule. (E) Undertakings applicable to the Loan and the Grant. The Borrower and Recipient undertake as follows: i) to implement and report on the implementation of the Environmental and Social Impact Assessment, the Environment and Social Management Plan and the RAP on a quarterly basis in form acceptable to the Fund; and ii) to regularly update the Fund on the status of the reforms in the road sub-sector and alternative plans being put in place to assure continuity in project implementation. 5.3. Compliance with Bank Policies 5.3.1 This project complies with all applicable Bank policies and does not require any exception. 6. RECOMMENDATION 6.1.1 Management recommends that the Board of Directors approve the proposed ADF loan of UA 77.04 million: (UA 74.425 million from ADF-12 PBA allocation and UA 2.615 million from cancelled resources), and an ADF grant of UA 0.56 million from cancelled resources, to the Republic of Kenya to finance the project described in this report subject to the conditions stipulated above. 16 APPENDIX I APPENDIX I: COUNTRY’S COMPARATIVE SOCIOECONOMIC INDICATOR Develo- Developing ped Countries Countries Year Kenya Africa Basic Indicators Area ( '000 Km²) 2011 Total Population (millions) 2012 Urban Population (% of Total) 2012 Population Density (per Km²) 2012 GNI per Capita (US $) 2011 Labor Force Participation - Total (%) 2012 Labor Force Participation - Female (%) 2012 Gender -Related Dev elopment Index Value 2007-2011 Human Dev elop. Index (Rank among 186 countries) 2012 Popul. Liv ing Below $ 1.25 a Day (% of Population) 2005-2011 580 42.7 22.9 71.7 820 37.0 46.3 0.538 145 43.4 30,323 1,070.1 40.8 34.5 1 609 37.8 42.5 0.502 ... 40.0 98,458 5,807.6 46.0 70.0 3 304 68.7 39.1 0.694 ... 22.4 35,811 1,244.6 75.7 23.4 38 657 71.7 43.9 0.911 ... ... Demographic Indicators Population Grow th Rate - Total (%) Population Grow th Rate - Urban (%) Population < 15 y ears (%) Population >= 65 y ears (%) Dependency Ratio (%) Sex Ratio (per 100 female) Female Population 15-49 y ears (% of total population Life Ex pectancy at Birth - Total (y ears) Life Ex pectancy at Birth - Female (y ears) Crude Birth Rate (per 1,000) Crude Death Rate (per 1,000) Infant Mortality Rate (per 1,000) Child Mortality Rate (per 1,000) Total Fertility Rate (per w oman) Maternal Mortality Rate (per 100,000) Women Using Contraception (%) 2012 2012 2012 2012 2012 2012 2012 2012 2012 2012 2012 2012 2012 2012 2010 2012 2.7 4.3 42.4 2.7 82.1 99.8 24.2 57.7 58.8 37.1 10.0 58.9 90.3 4.6 360.0 49.6 2.3 3.4 40.0 3.6 77.3 100.0 49.8 58.1 59.1 33.3 10.9 71.4 111.3 4.2 417.8 31.6 1.3 2.3 28.5 6.0 52.5 103.4 53.2 67.3 69.2 20.9 7.8 46.4 66.7 2.6 230.0 62.4 0.3 0.7 16.6 16.5 49.3 94.7 45.5 77.9 81.2 11.4 10.1 6.0 7.8 1.7 13.7 71.4 Health & Nutrition Indicators Phy sicians (per 100,000 people) 2004-2010 Nurses (per 100,000 people)* 2002-2009 Births attended by Trained Health Personnel (%) 2009-2010 Access to Safe Water (% of Population) 2010 Access to Health Serv ices (% of Population) 2000 Access to Sanitation (% of Population) 2010 Percent. of Adults (aged 15-49) Liv ing w ith HIV/AIDS 2011 Incidence of Tuberculosis (per 100,000) 2011 Child Immunization Against Tuberculosis (%) 2011 Child Immunization Against Measles (%) 2011 Underw eight Children (% of children under 5 y ears) 2009-2011 Daily Calorie Supply per Capita 2009 Public Ex penditure on Health (as % of GDP) 2010 13.9 118.0 43.8 59.0 77.0 32.0 6.2 288.0 92.0 87.0 16.4 2 092 11.1 49.2 134.7 53.7 67.3 65.2 39.8 4.6 234.6 81.6 76.5 19.8 2 481 5.9 112.2 187.6 65.4 86.4 80.0 56.2 0.9 146.0 83.9 83.7 17.4 2 675 2.9 276.2 730.7 ... 99.5 100.0 99.9 0.4 14.0 95.4 93.0 1.7 3 285 8.2 Education Indicators Gross Enrolment Ratio (%) Primary School - Total Primary School - Female Secondary School - Total Secondary School - Female Primary School Female Teaching Staff (% of Total) Adult literacy Rate - Total (%) Adult literacy Rate - Male (%) Adult literacy Rate - Female (%) Percentage of GDP Spent on Education 2009-2012 2009-2012 2009-2012 2009-2012 2009-2011 2010 2010 2010 2008-2010 113.3 112.0 60.2 57.1 43.9 87.4 90.6 84.2 6.7 101.9 98.4 42.3 38.5 43.2 67.0 75.8 58.4 5.3 103.1 105.1 66.3 65.0 58.6 80.8 86.4 75.5 3.9 106.6 102.8 101.5 101.4 80.0 98.3 98.7 97.9 5.2 Environmental Indicators Land Use (Arable Land as % of Total Land Area) Annual Rate of Deforestation (%) Forest (As % of Land Area) Per Capita CO2 Emissions (metric tons) 2011 2000-2009 2011 2009 9.7 0.5 6.1 0.3 7.6 0.6 23.0 1.2 10.7 0.4 28.7 3.1 10.8 -0.2 40.4 11.4 GNI Per Capita US $ 2011 2010 2009 2008 Kenya 2007 2006 2005 2004 Africa Population Growth Rate (%) 2.8 2.7 2.6 2.5 2.4 2.3 2.2 2.1 2012 Ke ny a 2011 2010 2009 2008 2007 2006 2005 2004 Afri ca Life Expectancy at Birth (years) 71 61 51 41 31 21 11 1 2012 2011 2010 Kenya 2009 2008 2007 2006 2005 2004 Africa Infant Mortality Rate ( Per 1000 ) 90 80 70 60 50 40 30 20 10 0 2012 2011 2010 last update : 2009 Kenya 2008 2007 2006 2005 2004 Note : UNAIDS; UNSD; WHO, UNICEF, WRI, UNDP; Country Reports. n.a. : Not Applicable ; … : Data Not Available. 2003 Sources : AfDB Statistics Department Databases; World Bank: World Development Indicators; 1800 1600 1400 1200 1000 800 600 400 200 0 Africa May 2013 APPENDIX II APPENDIX II: TABLE OF ADB’S PORTFOLIO IN KENYA 31 July 2013 Project Name Kimira- Oluch Smallholder Farm Improvement Project (Loan) Kimira- Oluch Smallholder Farm Improvement Project (Grant) Small-Scale Horticulture Development Project Multinational - Drought Resilience and Sustainable Livelihood Green Zones Developmemt Support Project Agric. Sub Total Mombassa Nairobi Transmission Line Kenya Elec Transmission Project Menengai Geothermal Development project (ADF Loan) Menengai Geothermal Development project (SREP Grant) Menengai Geothermal Development project (SREP Loan) Multinational - Ethiopia /Kenya Power Interconnexion project NELSAP Power Sub Total Community Empowerment and Institutional Support Project (CEISP) Technical Industrial Vocational and Entrepreneurship Training (TIVET) Multinational - Support to African Virtual University (Phase 2) Support to Enhancement of Quality and Relevance in HEST Social. Sub Total Timboroa - Eldoret Road Project Mombasa-Nairobi-Addis Corridor II Arusha- Namanga-Athi River Road Developm Multinational Holili-Taveta Voi Road Mombasa-Nairobi-Addis Corridor III Transport Total Integrated Land & Water Management (AWTF) Water Services Boards Support Project Water Services Boards Support Project (RWSSI) Lake Victoria Water and Sanitation Programme (Regional*) Nairobi River Basin Restoration Scaling-up Rainwater Management Small Towns Water and Sanitation WSS Sub Total Grand Total Source: SAP PS Module, EARC, July 2013; Note: * Unsigned loans/grants not included in the denominator; Approval Date Signature Entry Into Force Effec. For 1st Disb Net Commitments (UAm) Disb: Ratio (%)* 31May06 31May06 5Sep07 19Dec12 12Oct05 14Jul06 14Jul06 26Nov07 27Feb13 30Nov05 21Sep06 14Jul06 13Mar08 5May13 27Feb06 20Oct06 6Nov06 20May08 Not Yet 16Mar06 80.71 91.20 52.68 0.00 6May09 6Dec10 14Dec11 14Dec11 14Dec11 19Sep12 16Jun10 4Jun09 23Mar11 12Mar12 12Mar12 12Mar12 6Dec12 20Sep10 22Jan10 14Dec11 10Jul12 10Jul12 10Jul12 1Mar13 26Jul11 23Jan10 14May12 10Jul12 10Jul12 10Jul12 Not Yet 23Jan12 17Dec07 16Dec08 16Dec11 14Nov12 23Feb09 23Feb09 24Jan12 6Dec12 2Jul09 7Apr09 24Jan12 19Feb13 2Jul09 15May09 14Feb12 19Feb13 24Nov10 1Jul09 13Dec06 16Apr13 30Nov11 23Mar11 11Dec09 8Feb07 15Jul13 12Mar12 20Jul11 2Apr10 30Apr07 Not Yet 29Jun12 6Jan12 6Apr11 4Jan08 Not Yet 17Sep12 13Jan09 21Nov07 5Dec07 17Dec10 6Dec10 5Jul12 3Nov09 27Aug09 26Nov07 24Jun08 4Apr11 23Mar11 7Dec12 5Apr10 15Jun10 18Nov08 24Jun08 4Apr11 9Dec11 7Dec12 14May10 15Jun10 12Mar09 12Mar09 23Nov11 9Dec11 27Mar13 21Jan11 22.98 1.15 17.00 37.41 25.04 103.6 50.00 46.70 80.00 4.95 11.54 75.00 39.77 308.0 17.00 25.00 10.00 28.00 80.0 35.00 125.00 49.24 75.00 120.00 404.2 1.70 35.19 9.84 10.39 35.00 0.60 70.00 162.72 1,058.50 **PP = Problematic Project, PPP = Potentially Problematic Project 86.68 48.5 43.55 1.99 24.10 0.00 8.57 0.00 1.86 18.8 32.59 31.15 21.90 0.00 29.8 25.40 21.05 88.85 0.00 8.08 26.9 68.49 54.80 60.70 3.56 15.67 29.01 17.40 27.43 22.9 Closing Date Perf. Status** 30Sep14 30Sep14 31Dec14 30Jun18 30Jun14 Satisf 31Dec13 30Jun15 31Dec17 31Dec17 31Dec17 1Jan18 31Dec14 Satisf Satisf Satisf 31Jul14 31Dec13 30Jun17 30Jun18 Satisf Satisf Satisf N/A 29Feb16 31Dec15 31Dec13 31Dec18 31Dec17 Satisf 30Dec13 30Dec13 30Dec13 31Dec15 31Dec15 7Dec15 31Dec14 Satisf PPP Satisf N/A Satisf N/A Satisf Satisf Satisf N/A Satisf Satisf Satisf N/A Satisf APPENDIX III APPENDIX III: RELATED PROJECTS FINANCED BY DONORS Project Title Donor Region USD million Timboroa – Eldoret Project AfDB Uasin Gishu County 56 Arusha – Voi - Taveta Road Project AfDB Taveta County 113 Arusha – Namanga - Athi River Road Development: AfDB Kajiado County 74 Nairobi - Thika Highway Improvement (A2) AfDB Nairobi/ Kiambu Countyl 181 Mombasa-Nairobi-Addis Road Corridor Project II AfDB Marsabit County 183 Mombasa-Nairobi-Addis Road Corridor Project III AfDB Marsabit County 160 Roads 2000 Maintenance Programme AFD Muranga/Nyandarua County 29 Construction of the Eastern By-pass China Nairobi County 100 Lot III of Nairobi – Thika Road China Nairobi Kiambu County 120 Construction of the Nairobi South Bypass China Nairobi County 195 Agricultural Roads DANIDA Coast, Eastern Kitui County 4 Northern Corridor Rehabilitation Programme – Phase III EC Kenya 82 Merille River - Marsabit Road EC Marsabit County 122 Construction of Nairobi Missing Link Roads EC Nairobi County 40 Roads 2000 Maintenance Programme Phase. II EC Kitui County 15 Capacity on S&O for Roads Maint. Works JICA Kenya 3 Construction of Nairobi Missing Links No. 3, 6 & 7 JICA Nairobi County 60 Mombasa Port Development Project JICA Mombasa County 223 Dualling of Nairobi-Dagoretti Corner Road (C60/C61) JICA Nairobi County 11 Roads 2000 Maintenance Programme KfW Rift/Nyanza/West. Prov. 23 Roads 2000 Maintenance Programme SIDA Nyanza 25 Northern Corridor Transport Improvement Project WB/NDF Kenya 160/15 Northern Corridor Transport Imp. Project - Additional World Bank Kenya 253 Kenya Transport Sector Support Project World Bank Kenya 300 National Urban Transport Improvement Project World Bank Nairobi/ Meru County 300 APPENDIX IV: PROJECT PROCUREMENT PLAN Description Selection Method and Time schedule for 18 Months Selecti Lump sum Estimated Prior/Post EOI Publication Date on or TimeAmount in Review Metho Based UA d (million) Nairobi Outer Ring Road Project – Civil works ICB Lump Sum 72.12 Construction Supervision Consultancy QCBS Time Based Technical Audit Services LCS Traffic Management Technical Assistance Contract Start Date Comments Advanced Contracting EOI published on 13th Aug, 2013 SPN published on 2 October 2013 13th August, 2013 8 April 2014 3.75 Post Qualification Prior Review Lump Sum 0.16 Post Review 13th August, 2013 QCBS Lump Sum 0.35 Post Review March, 2014 8th April 2014 August 2014 Baseline Data Collection, Road Safety Awareness & Auditing Services Development of Urban Roads Maintenance Strategy QCBS Lump Sum 0.40 Prior Review 28th October, 2013 QCBS Lump Sum 1.12 Prior Review June, 2014 JKIA Runway Design Study QCBS Lump Sum 1.09 Prior Review June, 2014 October 2014 Airports Operational Management QCBS Lump Sum 0.92 Prior Review June, 2014 October 2014 Artisan Training for youth Total Cost LCS Lump Sum 0.21 80.12 Post Review March, 2014 August 2014 8th April 2014 8th April 2014 October 2014 APPENDIX V: MAP OF PROJECT AREA