EOI/KoTDA/083/ Konza Technopolis Development Authority (KoTDA)

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1 EOI/KoTDA/083/ 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 Nairobi, Kenya Tel: /4 Office Mobile:

2 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) 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 Implementation of the plan started in late 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 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 21 st 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 Phase 1 Implementation ( ) 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.

3 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.

4 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. Mombasa Rd A109 Total development: 1.5M m2 Total workers: ~17,000 Total residents: 30,000 Fig. 2: Vision of Phase 1

5 Total development: 60 acres 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 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 These sources will serve the entire 5000 acres of KTC 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 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

6 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 subsurface 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.

7 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 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)

8 KoTDA is therefore seeking assistance through the National Treasury for consideration of the EPCF model of financing to enable a quicker implementation of Streetscape, Subsurface Utilities and vertical infrastructure at KTC 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 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 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 startup, 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

10 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.

11 The schedule of construction is estimated as follows:

12 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 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.

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