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Development of an Export Quarantine Station and Livestock Export Zone 

Sector

Agriculture, Livestock & Fisheries

County

Mombasa, Taita Taveta, Tana River

Indicative value

KES 1890 million (US$ 12.1 million)

Phase

Pre-procurement

Contracting Authority

Ministry of Agriculture Livestock and Fisheries

Last update

22-06-2018 17:10:20

Development of an Export Quarantine Station and Livestock Export Zone 

Sector

Agriculture, Livestock & Fisheries

County

Mombasa, Taita Taveta, Tana River

Value

KES 1890 million (US$ 12.1 million)

Phase

Pre-procurement

Contracting Authority

Ministry of Agriculture Livestock and Fisheries

Last update

22-06-2018 17:10:20

  • Basic project information
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Basic project information

  • Project need

    Kenya does not have any disease-free livestock zones even though these zones enable countries affected by trade-sensitive diseases to export livestock and livestock products. These zones quarantine animals and prevent them from contracting communicable diseases. They also provide spaces to treat animals that might have been exposed to diseases and certify that animals in these zones are disease free. The concept of the creation of disease free livestock zones in Kenya was mooted in the year 2005 and is necessitated by the need to facilitate access of livestock and livestock products into the high-value markets which has been lost to other producers in the world due to the failure of the country to implement effective disease control measures as required by the prospective importing countries. This scenario led to an increase in the number of outbreaks of trade sensitive diseases rendering the country endemic as far as these diseases are concerned. The country disease situation created a barrier for trade leading to loss of potential revenue and foreign exchange. The overall goal of the project is to contribute to poverty reduction at the national and household levels. The specific objectives of the project are; to facilitate access of livestock and livestock products to local, regional and international markets; to improve sustainable rural livelihoods and food security; and to strengthen institutions in the livestock sub-sector. The programme will also contribute to compliance with sanitary measures in line with Kenya’s obligations under World Trade Organization-Sanitary and Phyto-sanitary (WTO-SPS) Agreement and thereby facilitate market access and food safety. The present scenario renders livestock products incapable of accessing the desired lucrative markets due to the stringent sanitary measures conditionally put in place by importing countries such as Middle East, European countries etc.

  • Description of asset

    Description The DFZ facilities under development are: i)Development of the Bachuma Livestock Export Zone (Bachuma Station) is sited at the former Bachuma LMD holding ground along Voi – Mombasa road. The Holding ground spans about fifteen thousand acres (15,000 acres) and is wholly owned by the State Department of Livestock as a livestock Marketing and Productivity improvement facility. The holding ground is surrounded by large ranches that are under lease to individual and group ranchers. There are twenty eight (28) ranches. This facility is expected to be leased for operation through public private partnership in an “operate, maintain and develop” arrangement with the State Department of Livestock (SDL). ii)Development of a Marshalling yard at Miritini (Miritini Station) in Mombasa County to support activities at the Bachuma facility during which it will be used for holding pre-shipment yard for live animals since there are no existing facilities at the Kilindini Port in Mombasa for such purposes. iii)Development of the Export Quarantine Station in Kurawa (Kurawa Station),Tana River County .It is under consideration for development as a screening facility for livestock. It is expected to be operated through a Build-Own-Operate-Transfer scheme where the private party designs, constructs, and finances, operates and maintains the facility on land leased to them at Kurawa Holding ground.

  • Rationale for selecting the project for development as a PPP

    Engaging a private entity will help the Government, and Department of Veterinary Services (DVS) specifically, achieve value for money. The private investor can bring funding, which would be unavailable otherwise, and complete construction of the Project faster. Under a PPP arrangement, DVS can transfer risks to the private entity and incentivize on-time and on-budget project implementation. Another advantage of PPP procurement stems from the private investor operating the Project and providing services more efficiently than DVS could.

  • Name and deliverables of Transaction Advisor

    .

  • Unsolicited project - Rationale

    Not applicable.

  • Project Summary document

    .Not applicable

Project milestones

2017

1 October

Project proposal received

Proposal received

Announcements

  • Information will be published as soon as it is available.

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The PPP Unit is a Specialized Unit within the National Treasury established under Section 8 of the PPP Act 2013. The PPPU serves as the secretariat to the PPP Committee and is responsible for the systematic coordination of all the PPP projects review and approval process, geared towards promoting the flow of bankable, viable and sustainable projects that further the National Policy on PPP. It is the specific responsibility of the PPP Unit to assist each contracting authority to identify, select, appraise, approve, negotiate and monitor PPP projects throughout their life cycle.

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