Kenya shortlists three bidders for US$200 million bridge PPP

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Kenya shortlists three bidders for US$200 million bridge PPP

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Kenya's Urban Roads Authority (KURA) has announced that it has shortlisted three firms/consortia to develop the 2nd Nyali Bridge under a public-private partnership (PPP). The estimated capital cost of the project is US$200 million.

The project will involve the construction, operation and maintenance of a six-lane bridge (three lanes in each direction) linking Mombasa island to the Nyali district of the city, across Tudor Creek. Mombasa is located in the south-east of Kenya.

As reported on this platform, KURA released a Request for Qualifications (RFQ) for the project in August 2017. In November, the authority announced that it had received five responses. The shortlist is as follows:

  1. Nyali Connect Consortium (Meridiam Infrastructure, Vinci Highways, Vinci Concessions)
  2. IHI-JOIN-Acciona Consortium (IHI Corporation, Acciona Construccion, Japan Overseas Infrastructure Investment Corporation for Transport & Urban Development (JOIN))
  3. Strabag AG

KURA intends to begin negotiations with these companies and consortia shortly. However, this is pending the securing of a transaction advisor. Deloitte was appointed this role in 2015, but the company's contract has now expired. The Treasury has yet to decide whether to renew the contract or appoint a new advisor. Until this decision is made, KURA will not proceed with the shortlisted teams.

The bridge will be around 600m long, though the private partner will also construct new bridge approach roads approximately 1.7km long, and expand existing nearby roads spanning 5km. Bridge users will pay tolls.

The existing Nyali Bridge is currently the only direct access route between the Mombasa North Coast Mainland and Mombasa Island. Built in 1980, the bridge and approach roads are often highly congested, particularly in peak hours. The average annual daily traffic volume is estimated at around 50,000 vehicles per day, with speeds as low as 6km/h, and is estimated to grow to 99,000 within 20 years.

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