6 June
Project proposal approved
The PIIP proposal was approved on 6th June 2018.
Privately Initiated Investment Proposals (PIIPs)
Nairobi
Pre-procurement
KCB Bank
03-07-2018 08:55:42
The proposed project seeks to alleviate the critical shortage of housing for the NPS through the use of a combination of private financing, development and facilities management expertise According to the Police Reforms Implementation Committee Report of June 2012, the force requires additional housing estimated at 69,061 units. This estimate excludes provisions for an additional 10,000 recruits who were undergoing training at the time of publishing the committee’s report. Their inclusion would increase the housing shortage to an estimated 79,061 units. Over the medium term, the force’s accommodation requirements are estimated at 130,000 units. This is on account of the planned annual recruitment of 10,000. It is against this background that the proposed project was conceived to finance the construction of a total of 20,000 housing units housing units. The implementation of the proposed project will be phased. This is on account of the recognition of the technical challenge and financial commitment required of the Developer (KCB Group). To that end, this feasibility study limits itself to Phase I of the project. In addition, it is proposed that the KCB Group retains an option to develop subsequent phases. Such an option would imply that KCB Group has the option but not an obligation to develop subsequent phases of the project.
Phase IA will entail construction of a total of 4,685 housing units across nine project sites. These include; South B Depot Industrial Area Administration Police Training Unit GSU Training Camp Police Logistics Center Allsops State House Rapid Deployment Unit (RDU) Security of Government Buildings (SGB) Directorate of Criminal Investigations (DCI)
Information will be published as soon as it is available.
Information will be published as soon as it is available.
Since the proposed project is to be delivered through a PPP mode as opposed to traditional public procurement approach, estimation of value-for-money (VFM) of the proposed delivery mode Vis a Vis public procurement is in order. This assessment is based on financial modelling of a Public Sector Comparator (PSC), which is the main tool in determining value for money. The PSC is necessary to test whether a PPP offers value for money in comparison to the most efficient and likely form of public sector delivery. The PSC is a risk-adjusted estimate of the net present cost of delivering the project through the best case public sector arrangement. It adjusts for retained risks, transferred risks and competitive neutrality to facilitate comparison with the PPP. The net present cost of the PPP is then deducted from the net present cost of the PPP. In this instance, the assessment rendered VfM estimates ranging from USD 134 million to USD 192 million, which implies that under all the scenarios, the proposed project would generate VfM for the contracting authority. Besides the quantitative evaluation above, the qualitative benefits associated with the delivery of the proposed project through a PPP are numerous. Firstly, the model facilitates transfer of risk and associated benefits include transfer of construction risk and completion risk to time and cost. To that end, there is an overwhelming amount of evidence to substantiate that PFI/PPP projects are being delivered on time and on budget.
Information will be published as soon as it is available.
6 June
The PIIP proposal was approved on 6th June 2018.
