African Infrastructure Projects – March Update

Kenya

Here is commentary on some of the latest Infrastructure projects that have recently had financial disbursements made available.

Kenya Infrastructure Projects requiring industrial LED lighting solutions

Kenya had the highest number of mega infrastructure projects in East Africa in 2016, noting it helped the country to maintain its lead as the regional powerhouse.

There were 11 ongoing projects valued at $7.01 billion (Sh727.98 billion) in the country last year, the consultancy firm said in the 2016 Africa Construction Trends Report.

The top projects comprised both public and private investments such as the standard gauge railway, the Lamu port berths and the Lake Turkana Wind Power Project.

In total, East Africa had 43 projects valued at $27.4 billion (Sh2.84 trillion) spread across Burundi, Comoros, Djibouti, Eritrea, Ethiopia, Kenya, Rwanda, Seychelles, Somalia, Tanzania and Uganda.

These translated into 15 per cent of the 286 development projects – valued at $50 million (Sh5.91 billion) and above – that had broken ground across Africa by June 1 last year.

The report says the transport sector accounted for the largest share of projects in East Africa last year, with 15 road and bridge projects.

Energy and power projects were many, making up just over a quarter of all projects, estimated at more than $10.7 billion (Sh1.11 trillion).

“Energy supply and access is an integral part of the East African Community’s development strategy. The EAC has implemented a regional strategy to scale-up access to modern energy services,” the report stated.

Some of the major projects that will require industrial lighting solutions in the country include:-

LAPSSET

The Sh2 trillion Lamu Port-South Sudan-Ethiopia-Transport Corridor project is hoped to trigger economic activities and more than double Kenya’s GDP.

The LAPSSET Corridor Program is Eastern Africa’s largest and most ambitious infrastructure project bringing together Kenya, Ethiopia and South Sudan. This mega project consists of seven key infrastructure projects starting with a new 32 Berth port at Lamu (Kenya); Interregional Highways from Lamu to Isiolo, Isiolo to Juba (South Sudan), Isiolo to Addis Ababa (Ethiopia), and Lamu to Garsen (Kenya), Crude Oil Pipeline from Lamu to Isiolo, Isiolo to Juba; Product Oil Pipeline from Lamu to Isiolo, Isiolo to Addis Ababa; Interregional Standard Gauge Railway lines from Lamu to Isiolo, Isiolo to Juba, Isiolo to Addis Ababa, and Nairobi to Isiolo; 3 International Airports: one each at Lamu, Isiolo, and Lake Turkana; 3 Resort Cities: one each at Lamu, Isiolo and Lake Turkana; and The multipurpose High Grand Falls Dam along the Tana River.

High Bay and Floodlight opportunity

The cost for the Short-term Plan, including the first 3 Berths in the Urgent Plan of Lamu Port, is estimated at Sh.68.9 billion (US$ 689m), Efforts by the national government to attract a private firm to invest in the Lamu port project LAPSSET got a boost after it received Sh.1b shilling grant to package the project as an ideal investment venture.

A new 32 Berth port at Lamu (Kenya)

Cost Estimate

Lamu Port Project, with 32 Deep Sea Berths estimated to cost US$ 5 Billion. The cost for the Short-term Plan, including the First Three Berths in the Urgent Plan of Lamu Port, is estimated to be US$ 689 million, taking account of dredging and reclamation; construction of berths and yards; construction of revetment, causeway and road; construction of buildings and utilities; procurement of equipment and tug boats; and others.

Konza Technology City –

The Sh900 billion project has been identified as one of the key drivers of the achievement of Vision 2030. The technology park will be built on a 64 square-mile stretch covering about 5,000 acres of land in Machakos County. Need for High Bay, Low Bay, Floodlight, and Floodlight IR.

The construction of the first building in Konza Technopolis has begun. The 8-storey building with two basement floors will host the techno city operations and house its early investors and innovators, the second phase of the building will have a hotel and a conference facility.

The Kshs 3 billion facilities to be built in phases will see the first phase costing Ksh. 1.9 Billion consisting of office block completed in 114 weeks. The Technopolis is now fully serviced with access roads, water and electricity, with sufficient capacity and reliability to support the construction and early stage of the project.

Speaking during a tour of the facility the Konza Technopolis Development Authority (KoTDA) CEO Eng. John Tanui, said that they are in consultations with government on the implementation of cities basic facilities including wastewater and streetscapes for the 400-acre phase that will be implemented through an engineering, procurement and finance model (EPCF).

“We are happy to report that the current building is funded by the government. We are pleased with the support from the government in ensuring that the key infrastructure required for Konza takeoff have been implemented and others progressing well such as external Roads, power substation and water dam to supply water for the city in the long term,” said Eng. Tanui

He added that the authority is in the process of procuring a contractor who will come with finance for the construction of Streetscape and Sub-surface utilities, wastewater treatment and recycling facility, bulk water treatment, booster station and storage, Fibre optic reticulation, power/Electrical Distribution and substation as well as Solid waste management.

The move will pave way for direct involvement of the private sector in development of the technopolis from January next year with the Konza Technopolis Authority (KOTDA) expected to finalize the land allocation policy by the end of this year.

KOTDA which floated requests for expressions of interest for the initial 24 pieces of land available for investment under phase 1A of the project in December last year has so far received over 60 bids. Eng. Tanui says the authority is in the process of evaluating the expressions of interest and expects to finalize the process by early next year.

Support infrastructure for the Technopolis has already been put in place with completion of a 132 KV power substation in May this year and the supply of over 2,000 cubic meters per day of water to sustain on-site construction. The technopolis will also benefit from the dualing of the 20KM Athi River-Machakos Junction road launched by President Kenyatta during Mashujaa day.

“The extension of the dual carriage road between Athi River and the Machakos Junction will ease congestion along the main highway that feeds into Konza enabling easy access to both Nairobi and the Jomo Kenyatta International Airport cutting travel time significantly,” Eng. Tanui said.

The total investment on Konza City Phase 1 on 400 acres both by private sector and the government is estimated at over Ksh. 600 billion of which the government will invest about 10% in the development of core infrastructure to facilitate investment by the private sector. So far the government has invested Ksh. 3 billion in the Konza he added.

KOTDA will use the building for among others hosting incubation centres in partnership with leading universities.

6.) Kenya Railways Golf Cities – The Kenya Railways is seeking for investors to develop 320 acres surrounding the railway stations in Nairobi, Kisumu and Mombasa.

The state agency plans to build office blocks, shopping malls, hotels, parking bays and a manufacturing park on the massive land that is currently sitting idle. The project is estimated to cost Sh256 billion.

This is the magazine in Kenya to advertise with.

How technology is transforming construction industry

Leave a Reply

Your email address will not be published. Required fields are marked *