EOI/KoTDA/083/2015‐2016

Expression of Interest Konza Technopolis Development Authority

Engineering, Procurement Construction and Financing (EPCF) Konza Techno City Phase 1 Infrastructure

Konza Technopolis Development Authority (KoTDA) 5th Floor, Capital West Business Centre P.O. Box 30519-00100 Nairobi, Kenya Tel: +254 20 434 3013/4 Office Mobile: +254-706-356905

1.0. Purpose

The purpose of this Expression of Interest (EOI) is to solicit qualified teams to Engineer,

Procure Construct and Finance the Phase 1 improvements for Konza. The need to expedite

the construction of the facilities in a manner that allows long term financing is desired by the

Konza Technopolis Development Authority (KoTDA).

2.0. Background

In 2009, The Konza Techno City (KTC) project was initiated by the Government of Kenya (GoK)

with the procurement of a 5,000 acre parcel of land at Malili Ranch, 60km south east of

Nairobi along Mombasa-Nairobi A109 road. Master planning for the site occurred from 2011-

2013. Implementation of the plan started in late 2014. The master plan of the city is based

on successful “new town projects” around the world – assembled by a consortium of

international team of experts.

The Vision 2030 development blueprint envisions transforming Kenya into a prosperous,

globally competitive middle-income country by the year 2030. Vision 2030 strategies aim to

kick-start this process by transforming employment markets, enhancing social infrastructure

and building national institutions. KTC is the physical embodiment of this Vision – a beacon

of excellence for Kenya and the whole of Africa. Envisaged as a city of 21st century, Konza will

be a 'smart city' with highly advanced overall integrated infrastructure, sustainable

developments, communication networks and market viability. The city represents an

ambitious vision of a modern, all-inclusive and sustainable Kenya, showcasing the country’s

new dynamism and prosperity.

The city features world-class civic and commercial architecture including the Regional

Innovation Hub; high quality Technology University; Smart Schools; Research Labs;

Recreational Facilities (Sports Stadium, Film and Media Centre), Hospitality (Hotels and

Convention Centers), Smart City Solutions and world-class infrastructure.

The commercial engine of KTC is a cluster of technology businesses, a city that will capitalize

on Research and Development (R&D) while leveraging on the emergent technologies and

social capital to spur innovations. It will provide a good innovation ecosystem to educate new

and existing tech entrepreneurs and for multinational companies entering Africa to consider

setting their offices or branches. Konza, with its reliable and redundant infrastructure and

connectivity, will be expected to foster a technology ecosystem that will bring together a

diverse population to provide solutions in communications, health, agriculture, education and

smart cities. Based on successful models such as Research Triangle, Silicon Valley among

others, Konza will bring a real transformation of Kenya towards knowledge and technology

based economy.

3.0. Phase 1 Implementation (2014 – 2020)

The city is designed to allow phased development, which will permit rapid growth while

ensuring the civic activities and infrastructure grows with the population needs.

It will be developed as a public private partnership, in which the Government will take a

minimal role, developing the public infrastructure and regulatory guidelines. Table 1 below

gives a summary of the expected developments and their magnitude.

Table 1: Phase 1 Development Program

Description Coverage / Size Catalyst Program Office 81,000m2 University 194,000m2 Life Science 35,000m2 Hospital 50,000m2 Accessory Program Civic and Services 14,000m2 Schools 47,000m2 Hotel 6,000m2 Retail 65,000m2 Residential (Residential Units)

1,032,000m2 (9,400No.)

Total Program

1,524,000m2

The master plan is composed of a mixed use “bar” that runs east-west off the Mombasa

Highway and is intersected by a series of program “bands” that run north-south. The

intersection of the bars and bands are moments of figurative collision, where special

programs and higher densities occur. These intersections become points of interest that seed

neighborhoods of distinct character. Interactions among these neighborhoods will contribute

to a sense of vitality in Konza as a whole.

The Stitch master plan also contains a series of neighborhood parks, arrayed about the city

with varied orientations. These parks help break up the city grid and provide further identity

for each neighborhood. Most parks are connected to the green boulevard, a 60 meter

parkscape and public transit corridor. The Stitch creates a framework for future growth in

which the bands extend farther across the site and the resulting interstitial infill regions are

planned to be responsive to economic demand, creating flexibility in the overall planning of

Konza.

Fig. 1: Land Use Bands for Phase 1

The figure below is a 3-dimensional land use impression of the expected developments in

Phase 1.

Fig. 2: Vision of Phase 1

Total development: 1.5M m2

Total workers: ~17,000

Total residents: 30,000

Mombasa Rd A109

Fig. 3: Phase 1A to Kickstart Development of Konza

3.1 Status of the KTC Site and Projects

Some infrastructure is already in place at Konza City to support construction efforts. These

include water sources, power, gravel roads demarcating the land parcels in Phase 1A, and

surveying. Design of the Phase 1A streetscape facilities and the Wastewater Treatment

Facility is in process.

3.1.1 Water

Seven boreholes have been completed to provide water for a portion of Phase 1A. In addition,

Nol Turesh and Thwake Dam water supplies are being developed to provide long-term water

sources for the city. It is anticipated that Nol Turesh will be incorporated in 2017 while the

dam will be completed around 2020. These sources will serve the entire 5000 acres of KTC.

3.1.2 Konza Auto-boulevard and Access Roads

Construction to gravel standard of a 4.2 km Auto Boulevard cutting across Konza City off the

A109 Mombasa Road on the East to link with Konza-Katumani Road on the West and which

is also the main access for any future developments in Phase 1 has been undertaken.

Additionally in a separate project, some 12 km of gravel access road network has been done

effectively opening up the 60 acres of Phase 1A to provide temporary access to the parcels of

land for development including storm water outfalls to detention pans.

3.1.3 Cadastral Survey

The cadastral survey is a regulatory milestone that is instrumental in the beaconing and

parceling of the area under Phase 1 of the city. The University of Nairobi Enterprises and

Total development: 60 acres

Services (UNES) Limited has completed the groundwork for the survey. Five control beacons

have been monumented strategically within the city for reference in future mapping and

surveys. Nine hundred boundary beacons have been established in the area under Phase 1

to demarcate the boundaries for individual parcels and infrastructure within this phase. The

completion of the cadastral survey paves way for the development of Phase 1 infrastructure,

which includes construction of power lines, laying of water and sewerage lines, laying of the

fiber optic cables and the ultimate development of verticals.

3.2 Infrastructural Facilities Required at Phase 1

There will be approximately 40 km of varying local, arterial and transit streets in the

immediate Phase 1A and the greater Phase 1 including the following lengths of utility sub-

surface infrastructure to be integrated and developed in association with the road

carriageway facility. The infrastructure construction will be categorized into two ‘lots’ as

listed below:

Lot 1

Lot 1 includes most horizontal infrastructure including conduits for all relevant utilities as

well as water storage and treatment, wastewater reclamation facilities and Community

buildings

40 km of Street system

32 km of sewage collection

60km of water distribution lines

20km of storm drainage

30 km of reuse lines

Wastewater Reclamation facilities

Water Storage and Treatment Facilities

Parks

Community Buildings

Lot 2

Lot 2 includes the wiring, transformers, sub stations, ICT building and all inside and outside

plant design, wireless network and ICT security.

40km of power lines and appurtenances

40km of fiber optic cabling and facilities

The bidders will have the option to bid on one

lot or on both lots separately.

4.0. Programme goals and objectives

The overall Phase 1 programme goals and objectives are outlined as follows:

a) Establishment of streets complete with utility infrastructure (Lot 1: water supply,

sewerage, storm water drainage, water re-use, and Lot 2: power and fiber optics) to

facilitate all the desired developments in the City;

b) Development and implementation of policy on concessionary land provision to

potential investors. This will be pegged on availability of the basic infrastructural

services described in (a) above;

c) Development of a Public Private Partnership policy targeting the housing sector in the

city after provision of the basic horizontal infrastructure in (a) above;

5.0. Project Financing

On-site and off-site infrastructure development will be required for Konza to become an

attractive location for business and residents. The Government of Kenya will play a role in

both, but private capital can also be tapped for funding on-site infrastructure that generates

revenue.

KoTDA is expected to obtain funds from two sources. In the initial years, KoTDA will utilize

seed funds from the National Government, and subsequently, as KoTDA enters into

development agreements with private developers and investors, it will receive ground lease

and other service fee payments. KoTDA will then be able to direct collected funds, including

government funds and grants, ground lease revenues, and user fees to finance a variety of

expenses, including up-front infrastructure, ongoing municipal services, among others.

The financial streams will therefore comprise mainly the following:

a) National government: Proceeds from government efforts will be required to fund what

cannot be financed through land leases and private capital markets.

b) Project finance: Private capital that can partially fund on-site revenue-generating

infrastructure especially utility services.

c) KoTDA revenues: From land leases, service fees, and Konza-based taxes which will be

used to partially fund on-site infrastructure.

Due to large outlays associated with the initial funding for Konza, KoTDA has chosen the

option of utilizing the Engineering, Procurement, Construction and Financing (EPCF) method

to implement major infrastructure projects to jump start the City.

6.0. Budget Estimates

The cost of undertaking Streetscape and Sub-surface Utilities Infrastructure Development at

Konza Techno City Phase 1 is estimated at approximately 64 Billion Kenyan Shillings ($640

Million, USD)

KoTDA is therefore seeking assistance through the National Treasury for consideration of

the EPCF model of financing to enable a quicker implementation of Streetscape, Sub-

surface Utilities and vertical infrastructure at KTC.

7.0. Facilities to be Funded by Other means

Other public facilities that will be funded through other income streams include the majority

of Public building facilities. These include:

Local Community centers, police outposts and medical clinics

Transportation Facilities

8.0. Source of Funds

The funds for the project shall be arranged by the prospective tenderer himself. The terms

and conditions of the loan will be subject to the approval of the National Treasury of the

Government of Kenya.

A prospective tenderer (the single entity) or the lead firm [contractor or sponsor] can submit

only one application in the same pre- qualification process, either individually as a tenderer

or as a partner of a joint venture. No lead partner can be a JV partner while submitting an

application individually or as a partner of another joint venture in the same Qualification

process. However, the consultant partner in any application may participate in more than

one application, but only in that capacity. A tenderer who submits or participates in, more

than one application will cause all the tenders in which the tenderer has participated to be

disqualified.

9.0. Information Required of Bidders

In order to assess their capacity and qualification, proposers are required to provide the

following information:

9.1 Letter of Expression of Interest

A cover letter, not exceeding two pages in length, containing the bidder’s full address

including a single point of contact who will handle all communications associated with

their submittal and stating the areas of expertise the firm is able to offer and for which

Lot the firm is applying to be shortlisted.

9.2 Firms Company Profile

The proposers should provide a brief description of the firm’s organization and an

outline of the recent experience relevant to the Konza EPCF assignment. The profile

should contain a summarized listing of the relevant projects completed within the last

10 years by the Prime and Sub-Consultants, indicating the type of expertize offered

and value of the services provided and completed.

9.3 Organization of Project Team/Description of Team Members and

Responsibilities

Considering the complexity of the assignment, it is assumed proposers will be required

to draw upon staffing and knowledge resources from around the world. Also, given the

size of the project, it is assumed that teams consisting of multiple consultants and

contractors and sometime financiers may be assembled. If teaming is proposed, the

proposer should identify the roles and responsibilities of each team member and how

they will be utilized on the EPCF project.

Proposers should demonstrate their ability to mobilize staff from global resources

quickly and efficiently so that the full depth of the firm’s experience can be applied as

needed to the design, construction and financing for both parts of the EPCF.

Knowledge of local tender processes and material specifications will be critical in

matching international design concepts with local construction.

Expected design disciplines for Lot 1 include Streetscapes, water, sewer, drainage and

landscaping. Expected design disciplines for Lot 2 include electrical and ICT facilities.

Architectural services will also be required for associated buildings. They should meet

the latest sustainability criteria that Konza is Adopting. A GreenStar, LEED or

sustainability expert will be needed for building certification. The new facilities should

be designed with energy conservation in mind. Where possible GreenStar or

Leadership in Energy and Environmental Design (LEED) processes should be followed.

Expected construction disciplines include construction of outlined facilities project

management, scheduling, project controls, material procurement, subcontractor

management, craft labor for all building trades, quality control technicians, and start-

up, commissioning, and operational specialists.

9.4 CV’s of Key Personnel

In order to demonstrate the availability of qualified personnel, the proposers are

required to provide curriculum vitae (CVs) of the key personnel in various disciplines

within their organization to be engaged in providing design, tendering, construction,

financing and supervision services for the execution of the project. The CVs should be

submitted in the standard forms included in this REOI. Only CV’s of personnel

specifically working on the project should be submitted with the organizational chart

showing their anticipated role for the EPCF.

9.5 Relevant Project References

The proposer must demonstrate global expertise in the design and construction of

Infrastructure and horizontal buildings of similar scale and complexity to that

envisioned for KTC. Proposers will ultimately be scored based on experience with

projects that include all facets of Infrastructure design, construction and financing.

Project experience in developing countries, and in Africa, will be beneficial. However, it

is understood that few projects with these characteristics have taken place in

developing countries and that much of the experience a proposer has to offer will come

from developed economies. In this context, the firm must demonstrate how it expects

to transfer effectively its experiences to allocation such as Konza while being familiar

with design, construction and financing in Kenya.

Ultimate scoring at the RFP stage will include project experience coordinating the

design, construction and financing of projects around the world.

Proposers should provide a list of recently completed projects, including nature of

work, contract value, financing limits and conditions, location and testimonials from

clients or prime consultants associated with their work. This should include at least

three projects that are of similar nature and complexity to the proposed Konza EPCF

Lot project and have been completed in the last ten years. List the location of the

project and the personnel who worked on that project. List what items of work which

that person was responsible for on that project. List the financing conditions of the

project.

Litigation history signed by commissioner of oaths or equivalent party.

9.6 Financial

The financial aspect of funding the EPCF Lot will ultimately be a key driver in choosing

the EPCF contractor.

The following should be taken into account when sourcing funds:

Terms of repayment including interest rate, repayment period and grant

element.

Credit terms to be within the limits acceptable by the National Treasury.

The financier is required to provide adequate funding for the project. The

construction phase should be done within a maximum period of four (4) years and

construction works must meet the Konza Design Criteria along with industry

standards.

The applicant shall demonstrate financial capability.

The applicant should provide audited accounts for the last 3 years.

The schedule of construction is estimated as follows:

10.0. Evaluation Criteria

The Evaluation criteria for the EOI will be at a high level to create short list of firms proceeding

to the RFP stage. Detailed evaluations will be required at the RFP stage. The following criteria

will be required at a minimum:

Registration as Works Contractor with NCA Category 1 in all fields for local

entities or equivalent for international firms;

PIN/VAT and current/valid Tax Compliance Certificates for firms/entities

incorporated in Kenya;

Ability to mobilize financing amounting to a minimum of 400 Million US Dollars

at any one given time;

A minimum turnover 50 Million US Dollars in the last five (5) years;

A summarized listing of projects completed within the last ten (10) years

indicating the type and the value of the works provided and completed

Proof of experience in undertaking similar assignments of at least two (2) design

and built projects. Copies of completion certificates should be attached;

If a joint venture or consortium, provide arrangement details for the firms or

companies in the Joint Venture;

Plant and equipment capability with ownership documents;

CVs of key personnel proposed for the assignment;

Provide litigation history certified by commissioner for oaths;

Audited accounts for the last five (5) years.

11.0. Submittal Requirements

Completed EOI are to be submitted in One (1) original, one electronic copy all in English and

in a sealed envelope, super-scribed “Tender No: KoTDA/EOI/083/2015/2016 EXPRESSION

OF INTEREST to ENGINEER, PROCURE CONSTRUCT AND FINANCE THE PHASE 1

IMPROVEMENTS FOR KONZA They should be deposited per the Advert. All late submissions

will be rejected.