Nyali Bridge Project

1. 2nd Nyali Bridge PPP Project
Kenya PPP Roads Investors Conference
November 2016

2. © 2016 Deloitte & Touche 2
Transaction Advisory Consortium
In association with
In conjunction with

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Contents
Project Summary
• The 2nd Nyali Bridge Project
• Introduction to Mombasa
• The Need for a 2nd Nyali Bridge
• Project Summary
• Project Structuring
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© 2016 Deloitte & Touche
The 2nd Nyali Bridge Project

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The 2nd Nyali Bridge Project
Contracting Authority: Kenya Urban Roads Authority
• Design, Build, Finance, Operate, Maintain and Transfer PPP Contract,
for:
• New 600m Bridge across Tudor Creek, Mombasa; together with
− 1.7km New Roads
− Expansion of 5km of existing roads
• 30 Year Contract, with an Availability Based Payment Mechanism
• Estimated Capital Cost: $200m

6. © 2016 Deloitte & Touche
Introduction to Mombasa
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Port Gateway to Kenya & E. Africa
Introduction to Mombasa
Mombasa
Nairobi

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Mombasa Island and its Access Points
Introduction to Mombasa
Nyali Bridge
Makupa
Causeway
Likoni Ferry
Nyali
Airport
Port
CBD

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‘Towards a Vibrant Regional Commercial Hub with a
High Standard of Living for its Residents’
Introduction to Mombasa

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Introduction to Mombasa
Geography and Economy
Comment
Land Area 230 Square Km
Population 939,000 in 2009, now est. over 1.2m
Development Primarily urban. Under 1000 Hectares of Land
for Food & Cash Crops.
Primary employers KPA, Hotels and tourism, Container freight
terminals and other shipping related, GoK,
Other Private Sector such as banks.
Special Economic
Zone
Planned for Dongo Kundu
Transport
Infrastructure
• Port: Kilindini Port - 2nd Container Terminal.
Dongo Kundu
• Roads: 6 Major road schemes planned
• Railway: Now 10km. SGR under construction.
• Moi International Airport

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© 2016 Deloitte & Touche
Rationale for the 2nd Nyali Bridge

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The Existing Nyali Bridge
Rationale for the 2nd Nyali Bridge
But……
• Congested, particularly during
rush hour
• Nearing design capacity
• Only direct link from
− Mombasa Island; to
− North Coast Mainland.
The need for a 2nd Nyali
Bridge
1. Reduce Congestion
2. Improve travel times
3. Greater accessibility, to
sustain economic growth
4. Provide an alternative route
• Built in 1979
• Has served Mombasa well for
over 35 years.
• Has received periodic
maintenance

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High Traffic Volumes - Existing Nyali Bridge
Rationale for the 2nd Nyali Bridge
50,000 daily trips
(excluding motorcycles and tuk tuks)
a.m.
peak
p.m.
peak
Close to Design Capacity

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Traffic Details – Existing Nyali Bridge
Rationale for the 2nd Nyali Bridge
Trip purpose
Towards Mombasa Island
%
Business 80
Home 8
School 5
Shopping 3
Other 4
100
Section Traffic
Speed
Average, Malindi Rd 13 km/h
Minimum 6 km/h
74% to/from Mombasa CBD

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Selection of the Preferred Location
Rationale for the 2nd Nyali Bridge
An Objective Process

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Selection of the Preferred Location
Rationale for the 2nd Nyali Bridge
Wide Range of Sites Considered

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© 2016 Deloitte & Touche
2nd Nyali Bridge
Project Summary

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Location of the Bridge
2nd Nyali Bridge - Project Summary
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Existing Nyali Bridge
2nd Nyali Bridge

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Bridge capacity
2nd Nyali Bridge – Project Summary
Pedestrian
Cyclists
General Motor
General Motor
or MRT

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Daytime (Artist’s Impression)
Bridge Conceptual Design
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Project Scope
2nd Nyali Bridge – Project Summary
Length
(km)
Current
Provision
Planned
Provision
2nd Nyali Bridge 0.6 N/a 4 lane roadway
2 lanes MRT*
Cycle
Pedestrian
Bridge Approach
Ramps
0.4 N/a As for Bridge
Abdel Nasser Road 0.5 2 Lanes motor
Pedestrian
As for bridge
Kongowea 1.3 N/a 4 lane roadway
Pedestrian
Links Road 4.4
__
2 Lanes Motor
Pedestrian
4 lane roadway
Pedestrian
TOTAL 7.2
* MRT lanes also capable of use for general motorised traffic

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Rights of Way (ROW)
2nd Nyali Bridge – Project Summary
Length
(km)
Existing
ROW
Planned
ROW
Comment
2nd Nyali
Bridge
0.6 n/a 40m
Bridge Ramps 0.4 Up to 18m 40m Extra to be
acquired
Abdel Nasser
Road
0.5 18m 40m Extra to be
acquired
Kongowea 1.3 None 40m To be acquired
Links Road 4.4 Up to 25m Up to 25m Use existing
ROW
TOTAL 7.2

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© 2016 Deloitte & Touche
Project Structuring

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Payment Mechanism
Project Structuring
• Availability Based
• Deductions
−Unavailability for full or partial road closures
−Deemed Unavailability – For blockages / failing to meet standards
−Service Points
• Indexation:
−Foreign Exchange
−Inflation
−Local Currency interest rate

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Rights, Responsibilities, Risks Project Co KURA
Design Y
Land Acquisition Y
Necessary Approvals Y
Construction Y
Financing Y
Force Majeure Y Y
Traffic Volume – Cost Implications Y
Axle Overloading Y
Revenue Y
Operations and Maintenance Y
Performance Y
Local Currency Inflation Y
USD: KSH Exchange Rate Y
Local Currency Interest Rate Y
Political Y
Project Structuring
Risk Allocation

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Development schedule
Implementation Plan
Note: Indicative implementation plan subject to approvals, land
acquisition and publication of RFQ/RFP etc
RFQ RFP BID
SUBMISSION
COMMERCIAL
CLOSE
FINANCIAL
CLOSE
Jan 2017 Mar 2017 Sep 2017 Nov 2017 Mar 2018

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Night time (Artist’s Impression)
Bridge Conceptual Design
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Contacts of Team Leader, Transaction Advisor
2nd Nyali Bridge Contacts
John Ponsonby
PPP Leader| Infrastructure and Capital Projects
Deloitte Consulting Ltd
Deloitte Place, Waiyaki Way, Muthangari, Nairobi, Kenya
Tel/Direct: +254 20 423 0182 | Fax: +254 20 444 8966 |
jponsonby@deloitte.co.ke | www.deloitte.comke
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DISCLAIMER
This presentation has been prepared by Deloitte on behalf of the Kenyan Urban Roads Authority (KURA), the intended
Contracting Authority for the 2nd Nyali Bridge Project. This presentation document is intended only to form the basis for
discussions on the Project with prospective participants. Accordingly, it does not purport to be all-inclusive nor to contain
all of the information that a prospective participant may consider material or desirable in making its decision to
participate in any future tender for the Project. Each Prospective Bidder should, therefore, conduct its own investigations
and analysis and should check the completeness, adequacy, accuracy, correctness, and reliability of the assumptions,
assessments, statements and information contained in this PIM and obtain independent advice from appropriate sources.
In furnishing this presentation document, KURA, or the GOK or any of its agencies undertake no obligation to provide
recipients with access to any additional information, or to update, or to correct any inaccuracies which may become
apparent in this presentation document or any other information made available in connection with the Project prior to
the actual tender. Additional information shall be provided at appropriate times during the formal tender process.
No person has been authorised to give any information or make any representation not contained in this presentation
and, if given or made, any such information or representation may not be relied upon as having been authorised by
Kenya Urban Roads Authority(KURA), or the Government of Kenya(GOK) or any of its agencies.
This presentation does not constitute a solicitation of bids for any aspect of the development
of the 2nd
Nyali Bridge project. Solicitations of bids and bidding guidelines will be distributed at
a later date.