Skip to main content

Chinese firm wins highways expansion project to decongest Nairobi

A Chinese contractor is carrying out a major road project intended to cut congestion in Kenyan capital Nairobi – Shem Oirere writes Chinese contractor China Wu Yi has won a US$163 million contract for the reconstruction and expansion of a 25km highway leading out of Kenya’s capital Nairobi with financing from the World Bank. The contract was awarded by the country’s National Highways Authority (KeNHA), a state-owned road agency responsible for the management, development, rehabilitation and maintenance of i
January 5, 2017 Read time: 5 mins
A Chinese firm is working on a project to help tackle Nairobi’s traffic congestion problem

A Chinese contractor is carrying out a major road project intended to cut congestion in Kenyan capital Nairobi – Shem Oirere writes

Chinese contractor 1581 China Wu Yi has won a US$163 million contract for the reconstruction and expansion of a 25km highway leading out of Kenya’s capital Nairobi with financing from the World Bank. The contract was awarded by the country’s National Highways Authority (KeNHA), a state-owned road agency responsible for the management, development, rehabilitation and maintenance of international trunk roads in Kenya, as part the bank’s financed National Urban Transport Improvement Project (NUTRIP). The NUTRIP for Nairobi has been split into three components and involves the upgrading and expansion of 45.2km highway between Jomo Kenyatta International Airport and Rironi on the Nairobi-Nakuru highway.

KeNHA director general Peter Mundinia announced the China Wu Yi contract in mid-July. It entails reconstruction and expanding of the 25.2km James Gichuru Junction Road to Rironi on the A8 Highway.

The road will be widened to 10.5m to accommodate six lanes, three on each of the dual carriageway which currently the bank says has a pavement structure that is in an "advanced state of deterioration due to exhaustion of service life with inadequate facilities for non-motorised traffic crossing highway.”

The existing pavement will be reconstructed along the 25km stretch. The contractor will also construct 44km of service roads that will be 6m wide, as well as a 3.4m wide non-motorised lane on either side of the road to boost road user safety, according to Mundinia.

He said 16km of collector roads will be upgraded to paved standards to “provide connectivity to communities living adjacent to the project road”.

China Wu Yi will also construct 13 bridges at interchange locations, 21 pedestrian overpasses and five underpasses in addition to installation of street lights along the 25km project road.

“The project is expected to ease traffic flow into and out of Nairobi city and is one of three major projects earmarked to decongest the city along the Northern Corridor Alignment,” he said. The Northern Corridor is the main transport backbone for Eastern Africa that links the eastern region of the Democratic Republic of Congo, Rwanda, Uganda, Burundi, Tanzania and South Sudan to the port of Mombasa.

When the road project is completed in 36 months, travelling time within the improved highways stretch will fall by at least 30% while vehicle operating costs will reduce by 25% according to the bank’s estimates.
The bank says the project will also help to “increase capacity of the urban road network, rationalise the use of scarce road space, and improve traffic flows and reduce traffic accidents along the key road artery, partly caused by heavy vehicles travelling to and from the port of Mombasa”.

“The project will help promote the development of Nairobi‘s economy, focusing on satisfying the transportation demands going in and out of the city, including proper management of trucks in the city,” the bank said.

The project is the second by the World Bank to decongest Nairobi, whose vehicle numbers have more than doubled since 2012 to 700,000, according to Nairobi mayor Evans Kidero. An earlier $665 million Nairobi urban toll road project, which would have seen seven road sections totalling 106km within the city put out to concession, was cancelled after the bank withdrew financing.

Some of the road sections had been earmarked for rehabilitation of the existing two-lane single carriageways, while one section would have been upgraded to a four-lane dual carriageway under a contract by a consortium of 945 Strabag and Israel’s Housing and Construction Holding Company.

A study by BKS Group of South Africa, an international consultancy, found the concessioning of the road sections viable with the bank at the time saying “given the assumed traffic levels, calculations show that the estimated project costs can be recovered at acceptable toll rates”.

Kenya terminated the ambitious project saying with the withdrawal of the World Bank, it was not willing to continue the project as then structured despite Strabag saying in a statement “the issues that were raised during the compliance review by the World Bank only relate to internal processes and procedures and have been addressed already in December 2010 and hence there are no open issues left to be negotiated”.

Former roads minister Franklin Bett said Kenya’s view was that “the concession project, as conceived by through participation of the consortium, is currently not feasible”.

"In view of the foregoing the project, as envisaged through the consortium has regrettably collapsed,” he said.
The bank later committed to financing the decongestion of Nairobi city “through any other feasible form of contract, either as a concession, or as a conventional public sector project". This now includes support of the first phase of the National Urban Transport Improvement Project implemented by KeNHA.

The bank says the phase entails constructing and rehabilitating non-motorised transport facilities, including foot paths, cycle tracks, pedestrian bridges and underpasses. It also includes carrying out feasibility and detailed engineering design studies of roads adjoining major towns, including Nairobi, and studies for improvement of traffic flows through provision of technical advisory services. This will substantially increase Nairobi’s road capacity.

For more information on companies in this article

Related Content

  • Support for Poland’s A1
    July 6, 2012
    The European Investment Bank (EIB) has in total granted a long-term facility of €1.070 billion for the construction of the second phase of the A1 motorway forming part of the priority trans-European transport network connecting the north of Poland (Gdansk) with the Austrian capital Vienna, via the Czech and Slovak Republics. The loan will finance the construction of a 62km section of the A1 motorway between Nowe Marzy and Torun on the basis of a design, build, finance and operate (DBFO) concession. This con
  • India’s new highway project
    March 24, 2017
    India’s Eastern Peripheral Expressway project is now moving forward - Partha Pratim Basistha reports. Work on the 12- year pending, National, Eastern Peripheral Expressway-2, surrounding India’s National Capital, Delhi and its National Capital Region (NCR) has finally commenced. The project involves the North Indian states of Haryana and Uttar Pradesh and this development follows the approval of India’s Supreme Court. The project was held up due to land acquisition issues. Contractors are now in the process
  • Kuwait Fund loans Sri Lanka US$35m for bridge reconstruction
    December 11, 2014
    Kuwait Fund for Arab Economic Development has awarded a loan worth nearly US$35 million to the Sri Lankan government for reconstructing 25 deteriorated road bridges. The bridges include three in Southern Province, four in Sabaragamuwa Province, nine in Western Province, three in Northern Province, five in North Western Province and a bridge in Eastern Province. The loan comes after the Ministry of Highways, Ports and Shipping sent out an invitation to bid in October, covering eight bridges along the
  • Georgia's East-West Highway
    February 17, 2012
    One of the most important priorities of the Government of Georgia is the construction and rehabilitation of the East-West Highway in accordance with international standards.