KENYA RAILWAYS DEVELOPMENT AND INVESTMENT INITIATIVES: PRESENTATION TO REGIONAL CONFERENCE ON EAST AFRICAN RAILWAYS – DAR-ES-SALAAM NDUVA MULI MANAGING DIRECTOR 11-12TH MARCH 2010 4/27/2017 KR initiatives

Kenya railways mandate KR initiatives 4/27/2017 Kenya railways mandate Following the concessioning of operations of Kenya Railways to Rift Valley Railways. The Corporation took a new strategic direction and is currently implementing a revised Mandate as follows:

Kenya railways mandate KR initiatives 4/27/2017 Kenya railways mandate Management of the Concession Agreement. Management of Non-Conceded Assets. Promotion and facilitation of national railway network development. Planning and development of metropolitan rail transport systems. Development and Management of inland waterways. Development and management of the Railway Training Institute (Discussing with government to transfer responsibility to Kenya Ports Authority)

Promotion andfacilitation of national railway development KR initiatives 4/27/2017 Promotion andfacilitation of national railway development A high capacity Standard Gauge Railway line from Lamu to Lokichogio for onward connection to Juba; A high capacity Standard Gauge Railway line from Nairobi to Moyale for onward connection to Addis Ababa; A high capacity Standard Gauge Railway line between Mombasa and Malaba with a Branch Line to Kisumu for onward connection to Kampala and Great Lakes Region; These projects are part of development plans in Kenyan ‘Vision 2030’.

NATIONAL SGR RAILWAYS DEVELOPMENT PLAN FOR VISION 2030 TO ADDIS ABABA JUBA TO KISANGANI ARCHER’S POST KAMPALA NAIROBI KIGALI LAMU BUJUMBURA MOMBASA 4/27/2017 KR initiatives

lamu – juba, nairobi - addis ababa lines The two railways to be developed within the Lamu Corridor and are flagships projects for Kenyan “Vision 2030”; Justification Increase development opportunities in Northern Kenya with respect to activating exploitation of: Stranded natural resources, Stranded human resources, Agricultural potential, Tourism potential, and Manufacturing potential; 4/27/2017 KR initiatives

lamu – juba, nairobi - addis ababa lines Justification (cont) Provide easy access to Southern Sudan and Ethiopia and provide them with dependable transport infrastructure to the EA Indian Ocean sea front; Contribute towards regional integration of transport network at national, regional and globally by developing North-South and East-West transport Corridors; Contribute towards wealth creation in the region through trade and employment opportunities; 4/27/2017 KR initiatives

lamu – juba, nairobi - addis ababa lines Justification (cont) Contribute towards regional integration through easy and affordable movement of goods and people; Contribute towards cultural exchange and integration; Possible future connection of the Lamu – Juba Railway to Douala in Cameroon to form the Great Equatorial land bridge The list is endless. 4/27/2017 KR initiatives

4/27/2017 KR initiatives

lamu – juba, nairobi - addis ababa lines Progress made Draft Bilateral Agreement between Kenya and Ethiopia for developing transport elements being discussed; Procurement of consultants to undertake various studies is ongoing. The elements include development of: Rail Road Oil pipeline Fibre optic cable Resort cities, Airports, and Lamu Port for post-Panama vessels 4/27/2017 KR initiatives

SGR-MSA-MALABA and KISUMU KR initiatives 4/27/2017 SGR-MSA-MALABA and KISUMU Justification The existing metre gauge railway network is grappling with challenges including obsolescence; Has limited capacity in tonnage and speed Mombasa Port currently receives approximately 17 million tonnes annually of transportable freight but the existing railway can hardly manage 5% with the rest going by road; The Northern Corridor is transport artery for Kenya, Uganda, Northern Tanzania, Rwanda, Burundi, Eastern DRC, Southern Sudan and Ethiopia – a region larger than Western Europe;

KR initiatives 4/27/2017 Progress Made On 21st October 2009, KR floated international tender for the procurement of a consultant to undertake the design of the railway and ESIA; 64 firms had purchased the tender document by purchase-closing date on 31st December 2009; 16 Firms submitted bids by 5th February 2010 – the closing date; Consultant evaluation process in progress

Technical specification highlights KR initiatives 4/27/2017 Technical specification highlights Highlights of the Technical specifications Passenger train speed = 160 kph (transit time MSA to NRB = 3 hours) Freight train speeds = 120kph (transit time MSA – NRB = 6 hours) Axle load = 32.5 (AREMA STDs) Single train capacity = 10,000 tonnes Environmentally compatible Energy efficient Designed for easy conversion to electric traction

MOMBASA – MALABA/ KISUMU sgr Highlights of the Technical specifications Passenger train speed = 160 kph (transit time MSA to NRB = 3 hours) Freight train speeds = 120kph (transit time MSA – NRB = 6 hours) Axle load = 32.5 (AREMA STDs) Single train capacity = 10,000 tonnes Environmentally compatible Energy efficient Designed for easy conversion to electric traction KR initiatives 4/27/2017

THE END PRODUCT: DOUBLE STACKED CONTAINERS ON A HIGH CAPACITY FREIGHT TRAIN 4/27/20174/27/2017 KR initiatives

MOMBASA – MALABA/ KISUMU SGR TIMELINES Activity Start End Months Procurement of Consultant for preliminary design, business and financial analysis and E&SIA October 2009 *March 2010 7 Preliminary Design, business and financial analysis and E&SIA (Phase 1) May 2010 April 2011 12 GoK decision May 2011 1 Detailed Design Study (Phase 2) June 2011 February 2012 9 Procurement of Construction Contractor March 2012 July 2012 5 Start Construction September 2012 Commissioning Nairobi – Mombasa August 2014 24 Commissioning Nairobi – Malaba/Kisumu August 2017 36 *This activity is on schedule 4/27/2017 KR initiatives

MOMBASA – MALABA/ KISUMU sgr: PPP MODEL UNDER CONSIDERATION Infrastructure development = GoK through direct funding and/or G to G arrangement/DBT Infrastructure ownership, management, maintenance and safety sustenance = GoK through KR Rolling Stock ownership = Private Trains operations = Private Safety management = GoK through Safety Railway Regulator Tariffs = GoK through Economic Railway Regulator. 4/27/2017 KR initiatives

MOMBASA – MALABA/ KISUMU sgr: INVESTMENT OPPORTUNITIES PPPs SGR and Commuter services DBOT MSA-MLB/KSM Railway Equipment provider/maintainer Infrastructure maintainer Railway operator Provider of many other ancillary services Lamu Douala Land Bridge 4/27/2017 KR initiatives

THANK YOU Q&A 4/27/2017 KR initiatives