The World Bank Northern Corridor Transport Improvement Project (P082615)

Transcription

1 Public Disclosure Authorized AFRICA Kenya Transport & ICT Global Practice IBRD/IDA Specific Investment Loan FY 2004 Seq No: 23 ARCHIVED on 19-Nov-2015 ISR20887 Implementing Agencies: Kenya Civil Aviation Authority, Ministry of Transport and Infrastructure, Kenya Airports Authority, Ministry of Transport and Infrastructure Public Disclosure Authorized Key Dates Key Project Dates Bank Approval Date:17-Jun-2004 Planned Mid Term Review Date:-- Original Closing Date:31-Dec-2009 Project Development Objectives Effectiveness Date:16-Sep-2004 Actual Mid-Term Review Date:04-May-2009 Revised Closing Date:31-Dec-2015 Public Disclosure Authorized 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 postelection crisis. Has the Project Development Objective been changed since Board Approval of the Project Objective? No PHRPDODEL Components Public Disclosure Authorized Name A. Kenya National Highways Authority:(Cost $ M) B. SOCIAL-ECONOMIC ENHANCEMENT, ROADSIDE AMENITIES AND HIV/AIDS MITIGATION:(Cost $4.36 M) C. PRIVATE SECTOR PARTICIPATION IN ROAD MANAGEMENT AND MAINTENANCE:(Cost $8.82 M) D. ROAD SAFETY IMPROVEMENT:(Cost $4.97 M) E. INSTITUTIONAL STRENGTHENING:(Cost $23.75 M) F. SUPPORT TO KAA:(Cost $34.82 M) G. SUPPORT TO KCAA:(Cost $10.11 M) H. SUPPORT TO MOT:(Cost $2.27 M) I. MISC - INCREMENTAL PROJECT OPERATING COSTS:(Cost $1.87 M) 11/19/2015 Page 1 of 9

2 Overall Ratings Name Previous Rating Current Rating Progress towards achievement of PDO Satisfactory Moderately Satisfactory Overall Implementation Progress (IP) Moderately Satisfactory Moderately Unsatisfactory Overall Risk Rating Substantial Substantial Implementation Status and Key Decisions Implementation Status Overview 1. The NCTIP is in its last year of implementation with most of the activities already completed. The project has contributed to a reduction in travel time along the Northern Corridor and supported the transformation of the transport sector in Kenya through the implementation of major reforms. Amongst these are (i) the formation of independent entities in the roads sub-sector to implement project while MoTI deals with policy formulation and setting standards; and (ii) financial autonomy of institutions in the aviation sub-sector. The project has already disbursed over 98% of the original and 100% of the additional financing and is on track to achieve its PDOs. In the meantime, the Borrower has requested for a reallocation of the Credit proceeds to enable it apply the remaining balances optimally over the remaining 2 months of the credit. 2. With implementation of outstanding activities planned to be completed within the remaining credit period, the projection is that all the Credit funds will be utilized and activities completed resulting in a Satisfactory outcome for IP. This outcome assumes that GoK shall provide its counterpart funding in a timely manner. Component A: Rehabilitation of Northern Road Corridor and emergency restoration of damaged public assets under the Ministry of Roads 3. This component comprised the rehabilitation of several sections of roads (listed in the AM) on the Northern Corridor (NC) and the reconstruction of KeNHA County offices. The ongoing activities hold the bulk of the undisbursed funds. Nonetheless, most of the contracts are completed and those outstanding are at an advance stage with good prospects of substantial completion by December Contractual issues which arose and were discussed in previous missions have been resolved as follows: a) VoP: The Bank appointed an expert to review the application of the formula for Variation of Prices (VOP) involving five contractors of which three contracts were and this project. The expert completed his report and shared the findings at a workshop held in October The findings were that the Contract Price Adjustment clause was applied incorrectly leading to overpayment to Contractors. Based on the recommendation by the expert, the IPCs were recalculated and the Borrower has recovered the overpaid amount from the subsequent certificates. b) Disputes: Four (4) contracts with SBI, the contractor were referred to a Dispute Resolution Expert (DRE) that adjudicated on the issues. Following the DRE ruling and in the spirit of cooperation, KeNHA and SBI discussed the contentious issues, reached a common ground on all issues and signed an amicable settlements. Overall the settlement is fair to both parties with SBI waiving some of their claims and settling on what is considered to be nonpunitive award while KeNHA accepted and a significant portion of the awards has been paid. 4. Progress to completion for the outstanding contract (Kisumu Airport-Kisian and associated roads) is on track. One other contract the Nyamasaria Kisumu Airport junction road faced challenges because the contractor is temporarily suspended by the Bank which means that the significant variation to its contract will have to be financed wholly by the GoK. KeNHA has been advised to prepare a financial appraisal to determine the additional financing that they will need to complete the contract and seek for funds from the NT. The other contract involves the rehabilitation of four short urban roads (Kisumu Airport-Kisian road and associated roads including Obote, Otieno Oyoo, Port access). 5. The other works involve KeNHA Regional Offices buildings works whose completion is delayed due to poor performance by the Contractor. KeNHA terminated the Contract with concurrence of the Bank and engaged two Contractors, one for the Kisumu office block and the other for the Oyugis and Homa Bay offices to complete the outstanding works. The works are expected to be completed by end of December Going forward, the completion of these outstanding activities will depend on; (i) close monitoring of the contractors, and (ii) timely availability of GoK counterpart funding to pay both the contractors and consultants, which is the subject of the ongoing CMU/NT dialogue. Because of penalties arising out of delayed payments over the years, KeNHA has also to factor in about Ksh 160 million to pay the contractors arrears. The Bank team plans to increase the implementation support missions during the remaining Credit period in order to monitor progress and deal with impediments to implementation progress as they arise. Component B: Socio-economic enhancement, roadside amenities and HIV/AIDS mitigation 7. HIV/AIDS mitigation: Implementation of this activity involves two dimensions; (i) measures aimed at project workers for whom the contracts provide such items as condoms, educational pamplet and experts to help disseminate information and (ii) a second tie intervention including truck drivers and other stakeholders operating along the Northern Corridor. While implementation of the first has proceeded well, there has been delay in the second because of the need to involve the National Aids Control Council (NACC), a GoK authority responsible for fighting AIDS. Following consultations the NACC has indicated that the interventions that were envisaged have been support by other financiers on the Corridor including the private sector. Component C: Private Sector participation in road management and maintenance 8. Largely achieved, one road section on the Northern Corridor was offered for tolling, though financial closure was not concluded the process was terminated. With respect to OPRC, the works contracts, the process was also cancelled due to receipt on non-responsive bids were received, though the whose process has created positive results with KeNHA developing skills and embracing the principle and awarded a number of contracts under this approach. Component D: Road safety improvement 11/19/2015 Page 2 of 9

3 9. The Transport projects support the activities of the recently established National Transport and Safety Authority (NTSA). Because of the time constraint the NCTIP will utilize outstanding allocation on training, goods and the completion of the National Road Safety Master Plan (NRSMP) while both the KTSSP and NUTRIP will support implementation of proposals arising out of the NRSMP. Component E: Institutional strengthening in the roads sector and technical assistance The status of outstanding activities under this component is as follow: 10. Detailed design of the three sections on the Kenya-South Sudan road link under EATTFDP namely Lesseru-Kitale-Marich Pass (240 km); Marich Pass-Lodwar (207 km); and Lodwar-Nadapal (239 km) is substantially completed. The engineering designs including cost estimates and the environmental and social impact assessment reports form part of the ongoing project appraisal for the (EATTDP). 11. The development of a 50 year transport master plan including a 10 year investment plan is delayed due to poor performance by the Consultant. MoTI has given notice for termination of the Contract. The Bank understands that the top management of the consulting firm has undertaken to complete the assignment at no addition cost. 12. Support to the EBK including Engineering Manpower Needs Assessment; Development of an Internship Program for Graduate Engineers; Development of a Strategic Plan for EBK; and preparation of Policy and Guidelines on Continuous Professional Development Program for the engineering profession have substantially been completed. EBK launched the Strategic Plan on March 24, It is planned that the remaining funds be used to support stakeholder consultations and preparation of implementation plans to be completed before December Component F: Support to Kenya Airports Authority Most of the activities under the KAA have either been completed expect for the design and remodeling of Terminal 1-B, C and D which will now be financed by the Government. 13. Construction of Terminal 1-A (formerly 4 (T4)) at JKIA (Package 2) including the parking garage is completed. The 11 service sub-contracts are also complete. The design capacity of the new terminal is 2.5 million passengers annually. 14. The design for the remodelling of terminals T1-B, C and D is planned to start in January 2016 and fully financed by the GoK. The selection process for a consultant to carry out detailed design was through the use of Bank procedures and Bank had given a no objection to the technical evaluation report. KAA is expected to formally close the procurement process with the Bank and conclude the process by opening the financial proposals and negotiating the contract with the highest evaluated and responsive firm. The scope of the assignment includes renovation, modification and expansion of ring building on the 3 terminals and the arrival building. The GoK has already written to the Bank asking for financial support towards the construction phase, a request that CMU has consented to in principle awaiting confirmation of various financing options including PPP and IBRD enclave loan. Component G: Support to Kenya Civil Aviation Authority 15. Most of the activities under KCAA have been completed and KCAA has requested use of surplus funds to finance its training program. The Task team supports this request as it will help update staff with new technologies in the industry. Many of the training programs will be conducted abroad. Component H: Support to the Ministry of Transport 16. All the activities under MoTI have been completed. However, MOTI retains the overseer role on the rest of the activities that are being implemented by its parastatals. KEY DECISIONS FOR PUBLIC DISCLOSURE 1. The NCTIP closes in December 2015 after a 10 year implementation period. The project has supported major reforms in the transport sector particularly in the creation of institutions that are responsible for the execution of modern infrastructure financed by both the GoK and Development Partners. About 400 km of roads sections have either be reconstructed or improved that has resulted in reduction of travel time on the Northern Corridor route and improved services at the key airports (JKIA and Kisumu) which continue to attract new arrivals. 2. With just over one month to closing of the project, a few activities will require special attention to ensure completion within the remaining period. These include; the Nyamasaria-Kisumu Airport road (commonly referred to as Kisumu bypass), Kisumu Airport-Kisian as associated roads sections, the KeNHA regional offices at Kisumu, Homa Bay and Oyugis and consultancy services for the remodeling of terminals 1, 2, and 3 of JKIA. 3. Provision of GoK counterpart funding and sufficient cash flow to pay for interim and completed works will become critical if the remaining works are to be completed as planned. The National Treasury has been requested to work with the MoTI to ensure availability of the counterpart funds so that credit funds can be fully utilized. Risks Systematic Operations Risk-rating Tool Risk Category Rating at Approval Previous Rating Current Rating 11/19/2015 Page 3 of 9

4 Political and Governance -- Substantial Substantial Macroeconomic -- Moderate Moderate Sector Strategies and Policies -- Moderate Moderate Technical Design of Project or Program -- Low Low Institutional Capacity for Implementation and Sustainability -- Low Low Fiduciary -- Moderate Moderate Environment and Social -- Moderate Moderate Stakeholders -- Low Low Other Overall -- Substantial Substantial Results Project Development Objective Indicators Freight and passenger travel time by road from Mombasa to Malaba reduced -truck) (Number, Custom) Value Date 16-Dec Mar Aug Dec-2015 FAA/IASA Category 1 and TSA security clearance obtained (Yes/No, Custom) Value N Y Y Y Date 16-Dec Mar Aug Dec-2015 One long term performance based road management contract awarded to the private sector and effectively under implementation (Yes/No, Custom) 11/19/2015 Page 4 of 9

5 Value N N N Y Date 16-Dec Mar Aug Dec-2015 Bids for concessioning of one road segment invited (Yes/No, Custom) Value N Y Y Y Date 31-Dec Mar Aug Dec-2015 Damaged public infrastructure and assets restored (Percentage, Custom) Value Date 31-Mar Mar Aug Dec-2015 Travel time Mombasa - Malaba for Car (Percentage, Custom Breakdown) Value Date 31-Dec Mar Aug Dec-2015 Travel time Mombasa - Malaba for - Bus (Percentage, Custom Breakdown) Value Date 16-Dec Mar Aug Dec /19/2015 Page 5 of 9

6 Overall Comments Intermediate Results Indicators Average roughness less than IRI 3.0 on completed sections of the project roads (Text, Custom) Value Less than 20% of project roads have average roughness less than IRI Maji ya Chumvi - Miritini: 1900mm/km 2. Sultan Hamud - Machakos 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 Achieved 100% of project roads have average roughness less than IRI 3.0 after rehabilitation. Date 16-Dec Feb Aug Dec-2015 At least three roadside stations and amenities constructed and functional as per designs and serving road users and local communities (Text, Custom) Value None Date 13-Dec Dec Dec Dec-2015 Legislation enacted for private sector participation in roads. (Text, Custom) Value None Achieved. Legislation enacted in Date 13-Dec Sep Sep Dec /19/2015 Page 6 of 9

7 Contract awarded for perimeter fencing at JKIA, TA appointed for safety inspectors and contract awarded for re-configuration of JKIA to separate incoming and outgoing passengers (Text, Custom) a) Security fence erected; Value none b) Major Civil works at JKIA completed; and Achieved -- c) KCAA adequately staffed. Date 13-Dec Jul Aug Dec-2015 KeNHA established and fully functional. All feasibility and design studies carried out (Text, Custom) Value None Achieved. Date 14-Nov Sep Sep Dec-2015 Timely disclosure of national road investment programs. National Construction Authority (NCA) established. (Text, Custom) Value Partial and late release of road investment programs. NCA non existence Comprehensive and timely disclosure of road investment programs. NCA established and operational Achieved -- Date 14-Nov Jul Jul Dec /19/2015 Page 7 of 9

8 Roads in good and fair condition as a share of total classified roads (Percentage, Core) Value Date Dec Dec Dec-2015 Roads rehabilitated, Non-rural (Kilometers, Core) Value Date 16-Dec Dec Aug Dec-2015 Road users and local persons surveyed aware of/making use of ACT and other facilities for HIV/AIDs campaign along the Northern Corridor (Percentage, Custom) Value Date 16-Dec Jun Aug Dec-2015 Overall Comments Data on Financial Performance Disbursements (by loan) Project Loan/Credit/TF Status Currency Original Revised Cancelled Disbursed Undisbursed Disbursed P IDA Effective XDR % P IDA Effective XDR % Key Dates (by loan) 11/19/2015 Page 8 of 9

9 Project Loan/Credit/TF Status Approval Date Signing Date Effectiveness Date Orig. Closing Date Rev. Closing Date P IDA Effective 17-Jun Jun Sep Dec Dec-2015 P IDA Effective 02-Apr May Sep Dec Dec-2015 Cumulative Disbursements Restructuring History Level Approved on 02-Apr-2009,Level Approved on 10-Jan-2013 Related Project(s) P Nairobi Urban Toll Road Concession-PEG,P Northern Corridor Additional Financing 11/19/2015 Page 9 of 9