| Project Detail |
Approval Date 14 Jul 2022
Sovereign / Non-Sovereign Non Sovereign
Sector Transport
DAC Sector Code 21023
Environmental Category A
Commitment U.A 113,327,289.21
Status Approved
Project General Description
The proposed Nairobi-Nakuru-Mau Summit highway project is part of Government of Kenya’s (GoK) First Mover Public-Private Partnership (PPP) program. The project is procured as a 30-year PPP concession for improvement and upgrade of two main highways in Kenya - A8 and A8 South, mainly located in the Kiambu and Nakuru counties. The project comprises: i) widening of the 175km four-lane dual carriageway and Operation & Maintenance of the existing A8 road from Rironi to Mau Summit and ii) strengthening and O&M of the existing 57.8 km 2 lane A8 South from Rironi to Naivasha. The Bank has taken the E&S Coordinator role (with IFC) for this project. It is considering to provide a senior loan of up to USD150 million (UA107million) ADB NSO loan with a 20-year tenor and 3.5 years (42 months) grace period during construction.
Project Objectives
An economic analysis of the project conducted by Kenya National Highways Authority (KeNHA) and rerun from the model, assesses the quantifiable benefits such as reduction of vehicle operating costs and travel time savings against the development costs and operating expenditures. The direct development outcomes expected from the Project mainly consist of increased productivity, commercial efficiencies, time and cost savings (of almost 100%); thus, alleviating the current perpetual traffic jams (travel times of almost 4 hours) on this stretch of the highway which will ultimately support economic growth and increase the quality of life of the people.
Beneficiaries
The road will benefit to people of the capital city, Nairobi, to two of the main economic hubs in the country, Naivasha and Nakuru, and forms a vital part of the country’s road network providing access for circa 6 million people (approximately 10% of the total population of Kenya). Average number of vehicles per day amounts to ca 16,000 vehicles (ca 5.8 million per year) with up to 40,000 vehicles in the busiest sections projected to increase significantly over the coming years. |
