The World Bank Report No: ISR15789 Implementation Status & Results Kenya Northern Corridor Transport Improvement Project (P082615) Public Disclosure Copy Operation Name: Northern Corridor Transport Improvement Project (P082615) Project Stage: Implementation Seq.No: 21 Status: ARCHIVED Archive Date: 07-Sep-2014 Country: Kenya Approval FY: 2004 Product Line: IBRD/IDA Region: AFRICA Lending Instrument: Specific Investment Loan Implementing Agency(ies): Kenya Airports Authority, Kenya Civil Aviation Authority, Kenya National Highways Authority, Ministry of Transport and Infrastructure Key Dates Board Approval Date 17-Jun-2004 Original Closing Date 31-Dec-2009 Planned Mid Term Review Date Last Archived ISR Date 04-May-2014 Effectiveness Date 16-Sep-2004 Revised Closing Date 31-Dec-2015 Actual Mid Term Review Date 04-May-2009 Project Development Objectives Project Development Objective (from Project Appraisal Document) The Project Development Objectives are to: (a) increase efficiency of road transport along the Northern Corridor to facilitate trade and regional intergration; (b) enhance aviation safety and security to meet international standards; and (c) promote private sector participation in the management, financing and maintenance of road assets; and (iv) restore vital infrastructure and public assets damaged as a result of the 2007 post-election crisis. Has the Project Development Objective been changed since Board Approval of the Project? Yes No Component(s) Component Name Component Cost A. Kenya National Highways Authority 220.43 B. SOCIAL-ECONOMIC ENHANCEMENT, ROADSIDE AMENITIES AND HIV/AIDS MITIGATION 4.36 C. PRIVATE SECTOR PARTICIPATION IN ROAD MANAGEMENT AND MAINTENANCE 8.82 D. ROAD SAFETY IMPROVEMENT 4.97 E. INSTITUTIONAL STRENGTHENING 23.75 Public Disclosure Copy F. SUPPORT TO KAA 34.82 G. SUPPORT TO KCAA 10.11 H. SUPPORT TO MOT 2.27 I. MISC - INCREMENTAL PROJECT OPERATING COSTS 1.87 Overall Ratings Previous Rating Current Rating Progress towards achievement of PDO Satisfactory Satisfactory Overall Implementation Progress (IP) Moderately Satisfactory Moderately Satisfactory Page 1 of 10 The World Bank Report No: ISR15789 Previous Rating Current Rating Overall Risk Rating Moderate Public Disclosure Copy Implementation Status Overview The PDOs are largely achieved. Most activities of the project have either been completed or are nearing completion. This has contributed to (a) a reduction in travel time along the Northern Corridor by more than the target of 25 percent (b) Aviation organizations attaining financial autonomy as well as improving their operational performance with KAA moving from a loss making to a profitable Organization; and (c) major reforms that have transformed the institutional arrangements in the road sub-sector with the creation of road authorities and oversight institutions. Implementation performance improved significantly during FY2014. The main outstanding civil works contracts on Mau Summit-Kericho; Kericho-Nyamsaria; and Nyamsaria-Kisian were turned around and are expected to be substantially completed by December 2014. As of June 30, 2014 about 93% (US$198 million equivalent) of the original credit and 70% (US$186 million equivalent) of the additional financing had been disbursed. Due to improved performance of the project during FY14, disbursements increased to reach US$99 million. The key progress is as follows:- 1. Civil works and associated consulting services contracts completed include: (a) Maji ya Chumvi-Miritini road section (40km including 4km dual carriageway); (b) Sultan Hamud- Machakos turnoff road section (55km); (c) Machakos turnoff-JKIA road section (33km including 12km dual carriageway); (d) Lanet-Njoro turnoff road section (16km dual carriageway); (e) Njoro turnoff-Timboroa road section (84km); (f) Kisumu airport involving passenger terminal to handle 500,000 passengers annually; (g) expansion of the apron and extension of the taxiways at JKIA; (h) erection of a security fence at JKIA; and (g) construction five schools at Taru (secondary – 500 students), Mlolongo (nursery -120 pupils, primary -1,200 pupils, and secondary- 400 students), and Kisumu airport (primary – 400 pupils). 2.Feasibility and detailed design and sector studies completed include (a) Kibwezi-Kitui-Mwingi-Maua; (b) Narok-Northern Lakeside Tanzania; (c) Mombasa Southern Bypass; (d) Road User Charges Study; (e) Road Inventory and Condition Survey/Road Reclassification Study; (f) Road Sector Investment Program (RSIP) for 2010 -2024; and (g) Transport Sector Indicator Framework Study, identified key indicators for the sector. 3. Major reforms implemented include: (a) separation of policy formulation from execution of programs; (b) establishment of road authorities; (c) adoption of a new roads policy; (d) Government providing financial autonomy to KAA and KCAA; and (e) KAA taking over passenger and baggage screening responsibilities from the Police. Meanwhile agreement has been reached to restructure KCAA by separating service provision responsibilities from oversight and regulatory functions and the process is advanced with a final consultant report under review and ready for implementation under the Kenya Transport Sector Support Project. Outstanding civil works: 4.(a) Rehabilitation of Mau Summit-Kericho road section (57 km): About 77% of the work program has been completed as at June 10, 2014 and the contract is expected to be completed by the end of December 2014. Execution slowed down due to delay in relocating power, sewer and water lines within Kericho town. This has since been addressed soon after the mission, though the contract now requires an extension of time. KeNHA prepared an Addendum which has been reviewed by the Bank and comments provided to KeNHA. Public Disclosure Copy KeNHA to submit the revised addendum by end August 2014. (b) Rehabilitation of Kericho-Nyamasaria road section (76 km): About 92% of the program of work has been executed against 93% of the contract period and the contractor projects to complete the works by September 30, 2014. This contract was also slowed down due to a delay by Kenya Power & Lighting Company (KLPC) relocating power lines along the remaining 2 km road section at Kapsoit. This has since been addressed after the mission, and the contract is likely to be completed by the end of September 2014. (c) Improvement of Nyamasaria-Kisumu-Kisian road section (including the bypass (24 km): This contract recorded significant increase in scope soon after award due to the long time (over three years) it took before commencement of works. The delay in the start-up of works was also partly contributed by Bank's management concerns regarding integrity issues in the road subsector. To address these risks, the Integrity Vice Presidency (INT) in collaboration with the task team and GoK, agreed on a Roads Sector Governance and Integrity Improvement Action Plan (RSGAP). In an effort to implement Page 2 of 10 The World Bank Report No: ISR15789 the RSGAP, it should also be noted that, it took the GoK, and also the Bank, working with INT, a very long time to determine whether the contractor who had originally won the bid was or was not the legal successor of a Bank-debarred company, and therefore eligible or ineligible to be awarded a Bank contract. For the period that the GoK took to investigate this matter and reach its determination before informing the Bank of the outcome, no work was possible with respect to this section, road conditions deteriorated while the traffic increased at unprecedented levels. Public Disclosure Copy In light of this, GoK negotiated with the Contractor and prioritized the works including a decision to (a) dual (four lanes and service roads) the Nyamasaria-Kisumu and Kisumu-Airport road section, which was originally a single lane (two lanes); and (b) keep in abeyance the reconstruction of some sections of the road within Kisumu city e.g., Otieno Oyoo street; Obote road; Airport-Kisian and Northern Bypass; and Port (Kisumu) road since the reconstruction of these road sections could not be accommodated in the Contract Price of KES5,766,229,918.54. The Contractor working on this section is under temporary suspension by the Bank’s Sanctions Board therefore credit proceeds cannot be used to finance the additional work. The GoK has prepared an Addendum No. 1 on completing the on-going prioritized works (15 km) at an additional cost of KES1,530,647,368.24 under its own financing. Furthermore, the GoK has decided that the road sections that were kept in abeyance and un-funded (totaling about 10.7 km which could take less than one year to complete as it has no major structures) should also be reconstructed at cost estimate of KES1.9 billion. The details are being worked out including a proposal on how the works will be undertaken. A proposal will be submitted to the Bank by July 31, 2014. (d) Construction of Terminal 4 (T4) at JKIA with a design capacity is to handle 2.5 million passengers annually was about 75% complete as at June 12, 2014 including specialized installations, though the building works are virtually completed. There are 11 contracts currently going on and at different stages of completion. Amongst these are; passenger boarding bridges, integrated security management system, baggage handling systems, information technology systems whose completion dates spread out until March 2015. Though KAA had planned for a partial opening of the terminal on July 4, 2014, instead, test flights commenced on this day to identify areas that could pose potential negative impacts and risks consistent. This is consistent as well as complying with the national and international regulations. An assessment by an independent consultant and also KAA’s own consultant concluded that T4 is not ready for partial opening since the physical works as well as many of the mandatory operational aspects are yet to be concluded including obtaining obligatory clearances, all of which required more time. Locations Country First Administrative Division Location Planned Actual Kenya Coast Province Miritini Kenya Rift Valley Province Timboroa Kenya Rift Valley Province Sultan Hamud Kenya Not Entered Mombasa Road Public Disclosure Copy Kenya Rift Valley Province Mau Summit Kenya Coast Province Maji ya Chumvi Kenya Eastern Machakos Kenya Rift Valley Province Lanet Kenya Nyanza Province Kisumu Kenya Nairobi Area Embakasi Page 3 of 10 The World Bank Report No: ISR15789 Results Project Development Objective Indicators Public Disclosure Copy Indicator Name Core Unit of Measure Baseline Current End Target Freight and passenger travel time by road from Number Value Mombasa to Malaba (hours) Date 16-Dec-2004 16-Jun-2014 31-Dec-2015 Comments Comments: Improvement of Travel time reduced by 25% road sections reduced travel time along Mombasa-Nairobi- Nakuru-Timboroa by an average of 34%, which is above the end target. FAA/IASA Category 1 and TSA security Yes/No Value No Yes Yes clearance obtained Date 16-Dec-2004 16-Jun-2014 31-Dec-2015 Comments TSA cleared JKIA in 2009. Commencement of operations is in abeyance due to security reasons of a regional nature reasons other thanat JKIA One long term performance based road Yes/No Value No Yes Yes management contract awarded to the private Date 16-Dec-2004 15-Nov-2013 31-Dec-2015 sector and effectively under implementation Comments The process was terminated This was achieved on based on GoK November 15, 2013. recommendations and funds reassigned to promote OPRC with GoK financing Bids for concessioning of one road segment Yes/No Value No Yes Yes invited Date 31-Dec-2004 31-Dec-2005 31-Dec-2015 Comments Objective achieved in 2005. Achieved. Damaged public infrastructure and assets Percentage Value 0.00 0.00 100.00 Public Disclosure Copy restored Date 31-Mar-2009 16-Jun-2014 31-Dec-2015 Comments Rehabilitation of damaged buildings going on and expected to be completed by December 2014. Car Percentage Value 14.50 9.00 11.00 Sub Type Date 31-Dec-2004 01-Feb-2013 31-Dec-2015 Page 4 of 10 The World Bank Report No: ISR15789 Breakdown Comments Target achieved. Travel time End Target was to reduce reduced by 33%. travel time by 25%. Five road sections totaling Public Disclosure Copy 228 km of which 28 is dual completed. Three more contracts totaling 160 km under reconstruction and to be completed by Sept. 2014. Bus Percentage Value 18.00 11.00 13.50 Sub Type Date 16-Dec-2004 01-Feb-2013 31-Dec-2015 Breakdown Comments Target achieved. Travel time Target achieved. Travel time reduced by 33%. reduced by 33%. Five road sections totaling 228 km of which 28 is dual completed. Three more contracts totaling 160 km under reconstruction and to be completed by Sept. 2014. Truck Percentage Value 24.00 15.00 18.00 Sub Type Date 16-Dec-2004 01-Feb-2013 31-Dec-2015 Breakdown Comments Target achieved. Travel time Target achieved. Travel time reduced by 33%. reduced by 33%. Five road sections totaling 228 km of which 28 is dual completed. Three more contracts totaling 160 km under reconstruction and to be completed by Sept. 2014. KCAA Percentage Value Public Disclosure Copy Sub Type Date 16-Dec-2004 16-Jun-2014 31-Dec-2015 Breakdown Comments FAA/IASA Category 1 clearance of KCAA is delayed but on track. ICAO Audit outcome in 2013 ranks KCAA third in Africa. JKIA (Nairobi) Percentage Value Sub Type Date 16-Dec-2004 16-Jun-2014 31-Dec-2015 Page 5 of 10 The World Bank Report No: ISR15789 Breakdown Comments TSA security clearance of JKIA obtained in 2009. Commencement of operations is in abeyance due to security Public Disclosure Copy reasons of a regional nature reasons other than at JKIA Intermediate Results Indicators Indicator Name Core Unit of Measure Baseline Current End Target Average roughness less than IRI 3.0 on Text Value Less than 20% of project 1. Maji ya Chumvi - Miritini: 100% of project roads have completed sections of the project roads roads have average 1900mm/km average roughness less than roughness less than IRI 3.0 2. Sultan Hamud - Machakos IRI 3.0 after rehabilitation. Turnoff: 2300mm/km 3. Machakos Turnoff - JKIA: 2100mm/km 4. Lanet - Njoro Turnoff: 2000mm/km 5. Njoro Turnoff Timboroa: 2300mm/km have average roughness of less than IRI 3.0 Date 16-Dec-2004 01-Feb-2013 31-Dec-2015 Comments Substantially achieved. IRI for Substantially completed the incomplete contracts will except for minor additional be collected upon completion works (access roads). of the contracts by end of September 2014 At least three roadside stations and amenities Text Value None constructed and functional as per designs and Date 13-Dec-2004 31-Dec-2012 31-Dec-2015 serving road users and local communities Comments a) Five schools completed a) Achieved and in use catering for about 2600 pupils/students. b) NMT facilities Public Disclosure Copy provided on the two road sections reconstructed. The scope of the facilities has been scaled down due to b) Achieved increase in the construction cost Page 6 of 10 The World Bank Report No: ISR15789 Legislation enacted for private sector Text Value None Achieved. Legislation enacted participation in roads. in 2007. Date 13-Dec-2004 04-Sep-2007 31-Dec-2015 Public Disclosure Copy Comments Achieved in 2007. Achieved in 2007. Contract awarded for perimeter fencing at Text Value none a) Security fence erected; JKIA, TA appointed for safety inspectors and contract awarded for re-configuration of JKIA to b) Major Civil works at JKIA separate incoming and outgoing passengers completed; and c) KCAA adequately staffed. Date 13-Dec-2004 30-Jul-2012 31-Dec-2015 Comments KeNHA established and fully functional. Text Value None Achieved. Date 14-Nov-2008 09-Sep-2013 31-Dec-2015 All feasibility and design studies carried out Comments Six feasibility and design studies have been completed. Timely disclosure of national road investment Text Value Partial and late release of Comprehensive and timely programs. road investment programs. disclosure of road investment NCA non existence programs. NCA established National Construction Authority (NCA) and operational established. Date 14-Nov-2008 02-Jul-2012 31-Dec-2015 Comments This has been achieved. Roads in good and fair condition as a share of Percentage Value 70.00 0.00 total classified roads Date 30-Dec-2010 31-Dec-2015 Comments Refers to part of Northern 80% of Northern Corridor in Corridor road in good good condition condition. IRI is less than 3.0 for the four road sections reconstructed. Construction works for the other two road Public Disclosure Copy sections nearing completion. Contract awarded for two more contracts, but progress has been slow. Construction on other two road contracts has commenced. Roads rehabilitated, Non-rural Kilometers Value 0.00 250.00 381.00 Date 16-Dec-2004 15-Dec-2013 31-Dec-2015 Comments Over 250 km already reconstructed and in use Page 7 of 10 The World Bank Report No: ISR15789 Road users and local persons surveyed aware Percentage Value 0.00 0.00 70.00 of/making use of ACT and other facilities for Date 16-Dec-2004 16-Jun-2014 31-Dec-2015 HIV/AIDs campaign along the Northern Comments KeNHA has consulted with Corridor Public Disclosure Copy National Aids Control Council and agreed on potential NGOs that could be requested to submit proposals. The assignment is expected to start by September 2014. Data on Financial Performance (as of 22-Jul-2014) Financial Agreement(s) Key Dates Project Ln/Cr/Tf Status Approval Date Signing Date Effectiveness Date Original Closing Date Revised Closing Date P082615 IDA-39300 Effective 17-Jun-2004 25-Jun-2004 16-Sep-2004 31-Dec-2009 31-Dec-2015 P082615 IDA-45710 Effective 02-Apr-2009 08-May-2009 02-Sep-2009 31-Dec-2012 31-Dec-2015 Disbursements (in Millions) Project Ln/Cr/Tf Status Currency Original Revised Cancelled Disbursed Undisbursed % Disbursed P082615 IDA-39300 Effective XDR 138.44 138.44 0.00 129.64 8.80 94.00 P082615 IDA-45710 Effective XDR 172.00 172.00 0.00 131.64 40.36 77.00 Disbursement Graph Public Disclosure Copy Page 8 of 10 The World Bank Report No: ISR15789 Public Disclosure Copy Key Decisions Regarding Implementation 1. The overall project implementation progress towards meeting its project development objectives has improved substantially in the last twelve months and the results are evident across all the indicators including a reduction in travel time along the Northern Corridor. Major civil works contracts have been completed including the reconstruction of Maji ya Chumvi-Miritini (40 km including 4 km dual carriageway); Sultan Hamud-Machakos turnoff (55 km); Machakos turnoff -JKIA (33 km including 12 km dual carriageway); Lanet-Njoro turnoff (16 km dual carriage);Njoro turnoff-Timboroa (87 km); expansion of Kisumu airport; and expansion of aircraft parking space at JKIA, among others. 2. The Mau Summit Kericho; Kericho-Nyamsaria; and Nyamasaria-Kisumu road section including the bypass are expected to be completed by end of December 2014. However, additional funds are required to complete the reconstruction of the Kisumu Airport-Kisian section, and the GoK is making arrangements to source for the additional resources so that the works are completed. 3. Construction of Terminal T1A (former T4) at JKIA with a design capacity to handle 2.5 million passengers annually is about 75% complete including specialized installations, though the building works are virtually completed. The specialized works are at different stages of completion, these include; passenger boarding bridges, integrated security management system, baggage handling systems, information technology systems whose completion dates spread out until March 2015. The GoK is carrying out test flights in Public Disclosure Copy readiness of opening the terminal for operations. 4. Most of airport related activities have been completed including (a) modernizing Kisumu airport in 2010; (b) expansion of the aircraft parking space and extending taxiways at JKIA; (c) acquisition of security equipment for major airports; (d) erection of a security fence at JKIA; (e) parking garage at JKIA; and (f) enhancing KCAA’s oversight and regulatory capacity. 5. A contract for constructing a permanent arrival facility for T1A (formely T4) has been awarded and works are going on as part of the emergency interventions at JKIA under Additional Financing for Kenya Transport Sector support Project. Terminals 1, 2 and 3 at JKIA will be re-organized and the procurement process for a consultant is underway with the Bank having given its comments on the draft Request for Proposals. Restructuring History Page 9 of 10 The World Bank Report No: ISR15789 Board Approved on 02-Apr-2009, Level two Approved on 10-Jan-2013 Related Projects Public Disclosure Copy P103962-Nairobi Urban Toll Road Concession-PEG, P106200-Northern Corridor Additional Financing Public Disclosure Copy Page 10 of 10