Outer Ring Road Project (Transport Sector Support Project)


Overview

  • Reference: P-KE-DB0-020
  • Approval date: 13/11/2013
  • Start date: 08/05/2014
  • Appraisal Date: 20/05/2013
  • Status: OngoingOnGo
  • Implementing Agency: KENYA URBAN ROADS AUTHORITY (KURA)
  • Location: NAIROBI

Description

The objective of this project is to improve traffic circulation through expanded road capacity in the city of Nairobi. The project road will in essence, address the worsening congestion consequently leading to reduced concentration of GHG emissions along the project corridor. In addition, the project will provide facilities specifically targeting women traders whose businesses have been affected by the construction activities on the project corridor.

The main components of the project include:

(i)Civil Works for the improvement of the Outering Road (13km) from 7m wide standard highway to a 2-way 2-Lane dual carriageway with an asphalt concrete surfacing and 2-3m wide NMT tracks on each side where necessary;

(ii)Construction supervision services for the road project over the entire project duration of 42 months;

(iii)Technical and financial audit services;

(iv)Capacity building of Urban Roads department;

Current Status: The feasibility and detailed engineering design studies including an Environmental and Social Impact Assessment (ESIA) were completed in March 2013. The detailed engineering design has taken cognizance of numerous settlements and businesses (legal/illegal) fairly spread along the road corridor, due care has been exercised in ensuring that as much as possible, the project road alignment follows the existing road to avoid infringing on private property thereby, minimizing expropriation and land acquisition and in consequence, avoid social disruption of livelihoods. The studies have entirely been financed by the Government of Kenya.

Project Implementation: The project is to be implemented in one contract for the civil works. Project preparation is scheduled for the first quarter of 2013 and appraisal in the second quarter for Board presentation in the fourth quarter of 2013. Cost Estimate is UA 90 million to be further refined during appraisal mission.

Financing: Kenya have put aside UA60 million from their ADF XII country allocations for the project. It is assumed that the Government of Kenya will finance 11% of project costs as counterpart financing.

The indicative financing gap stands at UA30 million. Part of which could be covered by yet to be identified co-financier if they agree to jointly finance the project. Any potential co-financier or additional sources of funds to bridge the gap will be discussed with the GoK during the preparation mission in March 2013.


Rationale

Under the Vision 2030, the Government of Kenya identified the transport sector as a facilitator of rapid economic growth and reconstruction, poverty eradication and wealth creation for the Country. The present supply of transport infrastructure Nairobi has been noted to be inadequate and not matching the demand by the Master Plan for Urban Transport in the Nairobi Metropolitan Area (2006-2025), hence the need to expand capacity of the highway network in the city of Nairobi. The chronic congestion in Nairobi today (2013) is partly blamed on this inadequate road capacity and sub-optimal diversification in transport modes in the city.

Accordingly, and in order to address this situation, this project entails the construction of 2-way 2-lane dual carriageway with grade separated intersections for improved traffic circulation, service roads to enhance accessibility to economic activity points, and an integrated Non-Motorized Transport (NMT) facilities to serve the mobility and safety needs of the transport poor, as well as promoting health of the urban population and livability in the city of Nairobi. Entitlements for project affected persons (PAPs) have been designed to assure restoration of livelihoods in terms of resettlement and rehabilitation for lost assets and restitution of public facilities and businesses particularly, to the vulnerable groups such as women traders along the project corridor.

The Outering road is of strategic importance to the vast populous Eastlands region of Nairobi in terms of facilitating access to the Jomo Kenyatta International Airport by traffic from the United Nations Headquarters at Gigiri and commercial traffic servicing the Industrial zone spreading from Ruaraka area through Kariobangi and terminating eastwards along the Mombasa - Nairobi highway.

The developments of this road project will ease traffic congestion through expanded roadway capacity thereby facilitating product flows and eliminating bottlenecks in the supply chain. An improved transit time is envisaged to inject reliability in the supply chain for commodities and enhance productivity of workers in the city. The importance of this road as part of the broader Nairobi road network is in line with the development objectives and priorities of the Government of Kenya and the Bank's strategy to support urban transport projects aimed at enhancing economic efficiency of urban centres in Africa.

The project has been identified in the Country Strategy Paper (CSP 2011 -2015) as priority for development. The Kenyan Government has allocated UA 60million of its ADF12 country allocation for the project.


Benefits

The project benefits will include improved traffic circulation, lower transport costs for freight transporters and improved air quality in the city of Nairobi.

The principal beneficiaries will be commuters who will now have to spend less time in traffic jams, industries whose commodity deliveries would be more certain due to more reliable supply chain, and residents of Nairobi who will enjoy improved air quality, particularly along the project corridor.


Key contacts

MAKAJUMA George Adongo - OITC2


Costs

Finance source Amount
ADFUAC 77,600,000
GovernmentUAC 8,800,000
TotalUAC 86,400,000