Bids for Mombasa port PPP revealed

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Bids for Mombasa port PPP revealed

Kenya Ports Authority (KPA) has opened technical bids to operate and maintain a second container terminal in Mombasa port, Kenya.

A total of 12 shortlisted teams have bid for the project. The shortlisted companies include APM Terminals, DP World, China Merchant Holdings, and Cosco Pacific as well as several consortia. Joint venture bids include Toyota Tsusho Corporation with Grup TCB and Mitsubishi Corporation with Freight Forwarders Kenya.

Five of the firms have offered to comply with a new rule introduced at the last minute into the concession documents that will give the government a 15 % free to carry interest in the project company, which would count as local participation.

Justus Nyarandi, KPA general manager, stated:

"This is the first time we have registered 100 % response from pre-qualified firms in such a high profile tender. We have attracted the best in the world and we hope to pick the best. For the next one month, we will carry out an evaluation and invite the winners for the final stage where we will open the financial bids. We will combine technical and financial bids to determine the best performer."

The proposed project seeks to apply a PPP arrangement for the operation and maintenance (O&M) of the second container terminal whose objective is to provide new handling facilities at the Port of Mombasa, with a larger goal of facilitating trade and economic development in Kenya and neighbouring countries in East Africa.

The 25-year concession contract is valued at Sh28 billion (US$248.6 million). The preferred bidder will pay KPA an annual fee of US$18.4 million plus a percentage of the profit handed.

Construction of Phase 1 of the new container terminal is currently underway with an estimated end date of Feb 2016.

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