Volume 4 Issue 017, July - August 2015

East Africa Informative Journal in Developing Infrastructure

Volume 4 Issue 017, July - August 2015

Celebrating Growth through Innovation

Brief case contractors killing the construction sector in Uganda 7 Tanzania’s cement producers call for level playing field 40 NCA urged to reduce levies for acquiring construction permits 42

TRANSPORT ENERGY HOUSING COMMUNICATION WATER

Editorial

Editorial Empower local contractors

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Editor Eric Obwogi

Advertising Executives Collins Ogonda - Kenya Jobunga Ndere - Uganda W. Minga - Tanzania Eva Gichohi - Rwanda

Media Manager Peter Acham

Design and Layout Nicholas Amanya

Published and Printed by Spako Media Limited P.O. Box 4517-00100 Nairobi - Kenya Tel: +254 20 2395373 Cell: +254 712 896013 / +254 773 547046 Email: admin@eainfrastructure-engineer.com Web: www.eainfrastructure-engineer.com

East African Infrastructure & Engineering Review Journal is published bi-monthly and is

circulated to members of relevant associations, governmental bodies and other personnel in the Building & Construction Industry as well as suppliers of plant and equipment, materials and services in East Africa.

The Editor welcomes articles and photographs for consideration. Materials may not be reproduced without written permission from the publisher.

The publisher does not accept responsibility for the accuracy or authenticity of advertisements or contributions contained in this journal. Views expressed by the contributors are not necessarily those of the publisher. ©All rights reserved

enya successfully hosted the Japan – Kenya infrastructure conference recently. The meeting was well attended by local and Japanese contractors and engineering firms.

It was also noted that to achieve the aspirations of Vision 2030, challenges in the transport sector must be overcome through adoption of the time-tested experience and skills in design and development of quality infrastructure like that of Japan. Local contractors were advised to adopt best practices in delivery of infrastructure projects.

Poor workmanship and late delivery of delivery of projects are some of the factors cited for low participation of local contractors in projects related to infrastructure development.

This must have informed President Uhuru Kenyatta as he warned that local engineers and contractors will not be awarded contracts in the new road building plan unless they ensure value for money. He said roads constructed under the Government’s annuity programme must be affordable and cost-effective, adding that only contractors who adhere to this will benefit.

As the government looks for new ways of funding infrastructure development, this could herald a new era in the infrastructural development sector, a time for local contractors to put their best foot forward.

However local contractors need an environment where they are empowered to deliver value. They must be given the opportunity to develop capacity – a good number are competent and teeming with experience. Work well done must be seen to be appreciated and contractors encouraged.

However, long waits for payment by government for completed projects, has remained a perpetual thorny issue for contractors.

Pay contractors in good time for work that they have delivered. This will enable them to grow and be emboldened to tender for larger jobs.

Magnificent completed private sector projects delivered are testimony that in terms of competence, the local sector is adequately endowed. Their growth will however continue to be stunted, rendering them unable to handle large infrastructure projects if they are not given this crucial incentive. Encouragement from the government should also be in the form of first consideration for local contractors and engineers, to tender for available projects that are within their capacity, before tendering goes international.

Given, there is a consensus that the Kenyan government has done a commendable job in weeding out cowboy road contractors who were a disgrace to the country because of the shambolic manner in which they did their contracted work. Therefore, the remaining few good contractors should be handled better so that they are not forced out of business, so that they are empowered to a position of strength to compete for emerging opportunities, and to play their role in the pursuit of Kenya’s Millennium Development Goals and Vision 2030.

In this way, the public will also get its value for money.

It is also important that the fight against corruption in the sector must be won, and operations in the parent ministries be streamlined for efficient delivery of service.

During the infrastructure conference, the Head of State urged local contractors to borrow a leaf from their Japanese counterparts and ensure that they deliver quality projects. Japanese companies have sweet stories on how they interact with their government; local contractors wish to tell their own good narrative soon.

Eric Obwogi Editor.

July - August 2015

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INSIDE 29 3

Briefs

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Events

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Feature: Development

11 Sultan Palace converts derelict coastal quarries into East Africa’s largest water park

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Advertorial

12 Davis and Shirtliff 14 Ryce Engineering

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Property

15 Karibu Homes

18 18 21 25 27 29 33

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Corporate Profile Aegis Development Solutions Limited Vakkep Building Contractors Limited Chartwell Insurance Brokers Limited General Liability Insurance Apex Systems Consulting Group Limited Chigwell Holdings Limited

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Construction

36 Top five reasons to why modular construction is on the rise in Africa 37 Safety and Green construction

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ICT

38 How big data is transforming the construction industry

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Tanzania Feature

40 Tanzania’s cement producers call for level playing field

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Uganda Feature

41 Uganda Society of Architects laments low numbers of architects in civil service

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Kenya Feature

42 NCA urged to reduce levies for acquiring construction permits

July - August 2015

Briefs

Avic International Kenya to construct $200m office complex

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hinese partnership with Kenya has energized a Chinese based global manufacture AVIC International Holding Corporation which is set to construct a $200mn office complex in Nairobi Kenya which is expected to be its African Headquarters.

The offices suites that will be located in Westlands in Nairobi got a major boost after the city council of Nairobi gave

Avic International Kenya a go ahead to bring up the building in the area.

According to the global manufacturer’s Africa Director Huang Hong the company decided to build its Africa headquarters in Kenya considering the fact that Kenya and China are currently having a firm relationship which has given the company a conducive business environment.

He added that the

company is looking forward to expand its business in the African countries considering the fact that they have already 110 branches in more than 50 countries across the world and in Africa they have over 20 branches and Kenya will be their headquarters in Africa.

The company’s director also said their African headquarters will cover 2500 square meters in a 7 acre site in Westlands Nairobi and this will accommo-

date residential units for their staffs and a hotel.

The Avic International Kenya project is expected to be a great boost to Kenyans as it will create approximately about 3000 job opportunities and 4000 once the project is complete.

According to Avic International President Wu Guangquan they are glad the Kenyan government has given them the support they need and they believe they will deliver the jobs that they have already promised the locals.

According to the Chinese ambassador to Kenya Liu Xianfa said they are committed to see the two countries get their partnership bear fruits and he congratulated the Avic International for choosing Kenya to be a their Africa headquarters.

Avic International Kenya has ongoing mega projects in Kenya which includes the construction of Terminal 4 at Jomo Kenyatta International Airport (JKIA) and the Greenfield Airport.

Kenya signs US$ 333m deal for Kuresoi dam construction BNP Paribas Italy and Intesa San Paolo banks have signed a US$ 333m agreement with Kenya for the construction of Kuresoi dam in Kuresoi, Nakuru county.

The signing of the agreement at State House, Nairobi, was witnessed by President Uhuru Kenyatta and Italian Prime Minister Matteo Renzi after they held bilateral talks. The agreement brings Italy’s total financial assistance to Kenya to US$ 528m The total amount will be used for the construction of Kuresoi dam, tunnel, raw water treatment of 100,000 cubic meters per day and laying of pipes on a project that will serve over 800,000 people in Kuresoi, Molo, Njoro, Rongai and Nakuru towns.

Mr. Matteo Renzi is in the country for a two-

Signing of the agreement at State House Nairobi was witnessed by President Uhuru Kenyatta and Italian Prime Minister Matteo Renzi after they held bilateral talks

day official visit. He was received on arrival by Cabinet Secretary for Foreign Affairs Ambassador Amina Mohammed. He was accompanied by Italy’s Deputy Foreign Affairs Minister Mario Giro, International Economic Affairs Adviser Prof Marco Simoni, ENI Chief Executive Claudio Descalzi and ENEL Green Power Chief Executive Francesco Venturi.

The Kenyan president welcomed more Italian companies to invest in Kenya, saying devolution has opened new investment opportunities in agriculture, infrastructure, energy, mining and manufacturing at the county level.

Since 1966, Kenya and Italy have enjoyed cordial relations and cooperation, Italian assistance to Kenya is in the form of grants, concessional loans and technical assistance.

July - August 2015

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Briefs

Firm unveils Sh50 billion real estate project Cytonn Investments CEO Edwin Dande Cytonn Investment has unveiled a Sh50 addresses journalists during the launch of Cytonn Real Estate projects at the Fairmont Norfolk hotel, Nairobi on Thursday evening. billion real estate deal that will see it been together over the last develop a five-acre aspirational gated four years pushing on this real estate agenda at various platcommunity in Karen. operational, the investor hopes forms and finally we decided

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peaking recently in a press briefing, a day that also saw the company launch its property development affiliate - Cytonn Real Estate, the firm’s Chief Executive Officer Edwin Dande, noted that 85 percent of the project would be low and medium housing. The remaining 15 per cent would be prime residential housing, which will also include the five-acre Amara Ridge gated community in Karen.

Besides Karen, other developments in the deal pipeline are in Lukenya, Mavoko, Athi

River, Kiambu and Ruaka. Mr. Dande said it would take on average five years to complete the projects.

He said the project will be financed through a mixture of debt and equity. Of the eight projects, he said the most advanced is the prime residential part of the deal pipeline, part of the Amara Ridge. Scheduled to break-ground in August 2015, Amara Ridge is a 5-acre aspirational gated community in Karen. The development is located opposite the upcoming Bomas International Conference Center and when fully

it will complement the on-going efforts to address Kenya’s position as a conference destination.

In addition to Nairobi, the company has projects in Mombasa and Mt Kenya region.

“One of our principle investors is called Talleri, which is a $4 billion (Sh388 billion) company out of Finland that has looked into this market and decided that they are going to Cytonn as their investment partner for Real Estate in this region.”

On the Cytonn Real Estate, Mr. Dande said: “As you may know the Cytonn team has

that it was time for us to create our own development affiliate in order to be focused on development.”

Cytonn’s Chairman, Prof Daniel Mugendi Njiru said, “The board is fully confident that management will deliver on these ambitious real estate targets. Achieving this will deliver attractive returns to our investors, transform communities, create jobs and improve standards of living.”

The event was attended by investors, landowners, service providers and other players in the real estate sector.

Kenya’s new airport to open up northeast region to tourists

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enya plans to open the northeastern tourist circuit to reap huge returns with the opening of the Isiolo International Airport later this year. Deputy President William Ruto said the airport, whose construction kicked off in 2013 in northern Kenya, is aimed at unlocking regional economic potentials.

“The airport, once operational, will make this region more accessible as there will be direct flights,” Ruto said

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Sunday during a tour assessing the ongoing construction of the airport. The new airport, developed and managed by the Kenya Airports Authority (KAA), is Kenya’s fifth International Airport and is expected to promote development in the vast region.

The project involves the construction of a Passenger Terminal Building covering a floor area of 4,800 square meters, and with a throughput capacity of 125,000 passengers annually. Ruto said the airport, the first international

airport in northern Kenya, was part of the Lamu Port Southern Sudan and Ethiopia Transport Corridor (LAPSSET), and would open up the region for tourism and business activities among other development projects.

He said the airport will also enable Kenyans to take advantage of the recently launched new trade pact that would create a common market for more than 630 million people in the COMESA-EAC-SADC member countries, adding that the government would continue to improve the business environ-

July - August 2015

ment by, among other things, boosting security, improving infrastructure and reducing the cost of electricity.

He stressed on the need for residents in the region to help the government tame the problem of terrorism and radicalization of youths. “It is our responsibility as citizens of this country to participate in the war against terrorist and radicalization of the youth.

We should work together with security agents in ensuring law and order round the clock,” Ruto said.

New Products

US$350 million approved for construction of oil pipeline in Kenya from Mombasa to Nairobi Kenya Pipeline Company has secured a $350million loan to invest in the construction of a new 450-kilometre oil pipeline in Kenya from Mombasa to Nairobi.

The state owned oil dispenser will move ahead to a 20 inch contemporary multi-product oil pipeline in Kenya to reinstate the more than 30 year old – 14 inch pipeline currently in use.

For the duration of the signing of the loan with a group of six banks, KPC acting managing director Flora Okoth alleged work is likely to be complete in eighteen months from the July 1 2014 contract signing date. Lebanese firm Zakhem International won the contract.

There are six local and international banks that do this.This are Citibank, , Rand Merchant Bank (a division of FirstRand Bank Limited London Branch) The Standard Chartered Bank, Commercial Bank of Africa, CFC

Standbic and Co-operative Bank.

As Okoth speaks the contractor is on the ground procuring most of the items required for the project. The requirements of completion is eighteen months however, an extra or less is being looked at April 2016.

The payment period of the loan is 10 years. KPC will fund

30 per cent of the project plus is putting in $150 (Sh15.3 billion) in the Sh50.9 billion project. Okoth continued saying that this will increase the product flow from the obtainable 730,000 liters to one million liters per hour. Once the lines are on, we will be taking off roughly four thousand trucks per day off the Mombasa-Nairobi route.

This is one of the most profitable bank financing ever entered into by a Kenyan parastatal with no government guarantee is none other than the loan.

Chairman John Ngum said “KPC can be seen like a proxy for the government. It has a profitable track record and a strong asset base.”

Construction in Kenya of a multi-million dollar library underway The construction in Kenya of the multi-million dollar Kenya National Library complex which is taking shape at the up-market suburb of Nairobi will rival the British Library in the United Kingdom and the Library of Congress in the US in size and enormity.

With a sitting capacity of 5000 readers at any given time, the construction in Kenya of this ultra-modern reading facility, according to the Chief Executive Officer, Kenya National Library Services (KNLS), Richard Atuti, will be a game changer in the reading culture of Kenyan public.

The gigantic reading facility which is being construction in Kenya in Nairobi’s up market Upper Hill area will cost the exchequer US$19.5 Million once complete and will enhance the capacity of the present facility which was constructed soon after independence.

Atuti who took newsmen around the construction site of the new library said that besides hosting thousands of readers, the new library will act as a comprehensive reference service for all readers besides supporting research work and hosting all kinds of government publications.

Atuti further said that, the new ultra-modern library will also host a section for the physically challenged and another one for the visually impaired.

“We have dedicated a whole section for these category of people in an effort to integrate them into the rapidly expanding reading clientele in Kenya while the same section will host another section with specially recorded materially for people with hearing challenges (the deaf)”, said the KNLS CEO. The CEO said this new library building whose first phase will be ready for occupation by the end of September this year is endowed with hi-tech information technology (ICT) gadgets which will ensure access to the internet and ensure safety of materials preserved.

“The facility which is 53 percent done will be completed by 2017 and it will usher in a virtual library culture for Kenyans where they can virtually access library services online from the comfort of their homes or offices,” said the KNLS boss.

He said that it will have a component of open public access and it will be accessible online with a full list of books in the library and which branch has which book, wherever it’s available for borrowing or reservation.

Atuti said the library will have wireless internet with 100 meters of the vicinity for the benefit of readers. He said the KNLS is coming with a master plan that is being undertaken in collaboration with Kenya Institute for Public Policy Research and Analysis (KIPPRA), to ascertain the cost to construct libraries

July - August 2015

across all the 47 counties as part of vision 2030.

“The users will use biometric system to access the facility which will be comfortable and secure, the concept is very unique and easy to use,” he further says. He adds that the new library will have recorded books to be availed to people with impaired hearing, while they will also have audio navigators to guide the visually challenged learners.

“The new hi-tech installed will be a whole new experience that will bring a paradigm shift on how we use the library services,” he adds.

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Briefs

SkyPower signs a US$ 2.2bn deal for development of solar power in Kenya

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n American company, SkyPower which is one of the largest developers and operators of utility-scale solar photovoltaic (PV) energy projects has signed a US$ 2.2bn deal with the Kenyan Ministry of Energy that will see the development of solar power in Kenya.

The agreement with SkyPower was signed during the sixth Global Entrepreneurship Summit that ended on 26th July, 2015 at Gigiri, Nairobi.

Kerry Adler, the SkyPower president and chief executive officer, said his company intends to develop

world-class solar power in Kenya to be built in four phases over the next five years.

“The solar power in Kenya project will include fabrication and assembly plants.

Approximately US$ 173m will go towards educating, training, research and development,” Mr Adler said.

He further pointed out while making the disclosure at the GES that Kenya has become an African hub for innovation and entrepreneurship and SkyPower is proud to contribute to this unprecedented milestone

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Construction of new hotel in Rwanda 6

new hotel in Rwanda is being constructed by a Japanese firm Noguchi Holdings in a bid to boost tourism in the country. The beach resort is situated in Kagogo division on the coast of Burera and Ruhondo lakes.

Samuel Sembagare, the district mayor of Burera, said that their main aim of constructing a new hotel in Rwanda at the coast of Burera is to increase tourism and make better revenues in the country.

The construction project has already kicked off and is to be completed by December and it will costs over Rwf350 million.

The mayor said they decided to invest in hotel construction

July - August 2015

in Kenya’s ambitious renewable energy programme.

Kenya will hugely benefit from deals signed with top world technology, energy and financial companies that attended the Global Entrepreneurship Summit which was officially inaugurated by US President Barack Obama in Nairobi.

The summit, started by the US president in Cairo in 2009, brought together entrepreneurs and investors from across Africa and around the world to showcase innovative projects, exchange new ideas and help spurs economic opportunities.

During the summit, President Obama announced a US$ 100m fund to support women and youth entrepreneurs. Delegates from 120 countries attended the event which focused on generating new investments for entrepreneurs, with a particular focus on women and youth.

SkyPower has developed over 25,000MW of solar power projects worldwide. because they only have two hotels which are not enough to accommodate the number of tourists visiting the district thus affecting the tourism sector in the district.

The idea of the construction of the hotel in Rwanda was welcomed by the Local residents saying it will create market for their products.

“I expect to sell most of my bamboo products to tourists once this resort is complete,” said Christine Mutuyimana a local resident.

She noted that electricity and roads were being developed around the area a move that is expected to boost business.

She urges all residents around Burera to be more inventive and take advantage of the ongoing projects to improve their business.

Briefs

Brief case contractors killing the construction sector in Uganda

Sam Stewart Mutabazi is the Executive Director of Uganda Road Sector Support Initiative (URSSI)

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ganda National Association of Civil Engineering Contractors (UNABCEC) has of recent been engaged in a constructive debate on how to promote the construction sector in Uganda.

They were particularly concerned with the advertorial of the Roads Industry Council (RIC) that appeared in the daily press headed “Why change is needed: challenges facing Uganda’s roads industry” For clarification purposes, I am a member of RIC. I am, however, not its spokesperson and neither am I authorised to speak on the council’s behalf.

The contents of this rebuttal are, therefore, my personal views and not of RIC. RIC, which is a five-year old advocacy think tank, works as an advisory board of the Cross Roads Programme and uses a multi-pronged approach in influencing government policy on road infrastructure development and maintenance. One of the core areas of focus for RIC and indeed the Cross Roads Programme is to strengthen the capacity of the local construction sector in Uganda.

The construction sector in Uganda faces major impediments some of which are interrelated. The situation was worse six years ago before the Government’s decision to prioritize the sector by allocating more resources. Though somehow improving, it has not reached anywhere near the desirable level.

Key among the challenges the sector faces are weak local contractor capacity,(many small SMEs briefcase contractors and speculators) inadequate resources, lack of prioritization and systemic intervention,

weak procurement systems and lack of a strong government regulator to steer and guide the industry to prosperity.

The works and transport sector players including UNRA are in agreement that there is need for close regulation of the construction sector in Uganda to guide its growth. Given the amount of resources that the Government has committed to the sector, many speculators commonly referred to as “Brief Case Contractors” have come up to cash in into the sector with the largest national budget. In 2012, UNRA attempted to classify and grade contractors with an objective of identifying genuine contractors according to their expertise and experience. This would ease the pressure that come with speculator firms that are more often created for the sole purpose of winning certain tenders at the expense of seasoned companies. It should be noted that the construction industry is very fluid. Any construction company that is not assured of business for years cannot sustain itself because it cannot retain its skilled staff, nor pay its day-today costs. Over 95% of all road construction firms derive their incomes from government (UNRA and local governments) because it (government) is the monopoly owner of most roads in the country.

Construction companies can only survive when they have work.

According to UNRA, there are approximately 800 local construction firms in Uganda currently. Yet not all the 800 contractors can all have projects.

The brief case contractors, therefore, when allowed to flourish, can completely distort the market rendering it unpredictable and volatile. They breed corruption and malign competent companies through unnecessary administrative reviews because they feel they must always win. The sector is in advanced stages of establishing a very important institution called Uganda Construction Industry Commission (UCICO) which will regulate all construction companies in the country. Cabinet has already approved the UCICO Bill now due for debate by Parliament.

Whenever UNRA puts out a

tender, the agency is overwhelmed with the number of bidders with many claiming to be what they are not in order to be selected.

The more the projects a company handles the more the resources it gets and the more likely it is likely to grow. To ensure long term sustenance of construction firms, industry players agree that reputable firms should have term contracts (agreement specifying regular flow of maintenance, minor works and improvements carried out by a single contractor over a specified period of time). The other option is to pick from prequalified contractors according to their clarification and grade in lieu of scope of work.

These are the best options so far to guarantee small firms to grow into bigger construction companies that would be able to compete with international companies on large scale projects such as KampalaMasaka-Mbarara-Kabale Road UNABCEC is in total support of small contractors although they rhetorically doubt the existence of contractor’s classification and grading database. They are of the view that government should not interfere with competition. This is quite erroneous. Unregulated competition is chaos. Chaos in any sector can never lead to progress.

It is in the interest of contractors that they are regulated. Any market where there is free entry and exit is liable to either suffer stunted growth or hemorrhage or both. So many would-be medium contractors have been sacrificed in the “muddy waters” of open market of the construction industry in the last two decades. UNABCEC‘s view of supporting brief case contractors may be construed to mean that they support the notion that “if we can’t all benefit we should all lose”.

This is unpatriotic.

Naturally, in any industry there are always winners and losers and the construction sector is no exception. However the construction industry is unique in a sense that it takes long to nurture and grow into a proficient one. It also tends to stagnate like it has been Uganda. With due respect to UNABCEC members, Uganda’s construction industry and specifically road construction companies

July - August 2015

have not seen a consistent growth over the years. One of the reasons explaining this is lack of consistent government policy and support to the industry. A distinction should be made between a small contractor and a “Brief case” one. There are credible small contractors who have clear strategies on how they want to progress their firms into viable companies. These must be supported and allowed to grow.

The dangerous category which RIC is concerned about is the brief case contractors who jump at every opportunity to make quick money at every occasion. Theirs is not about sustainability and growth of their firms but amassing wealth through quick-fix contract jobs.

I am a neo-liberal economist, and a supporter of a free market approach to development. I am however a strong believer that private sector on its own without government regulation and support can never and will never deliver any country out of poverty and underdevelopment. In his book “Kicking away the ladder”, Ha-Joon Chang argues that USA and Britain which are the intellectual fountain of modern laissez-faire have never at any one moment practiced total free trade. Liberalization is a myth and at worst a mirage which the developed world uses to hoodwink the developing world into believing the wrong notion that the Government is a “stupid” observer in the scheme of resource accumulation and development in a capitalist world. No one in RIC is arguing that all SMEs and contractor companies have to start in a big way after all startup capital and interest rates are quite prohibitive. Classification under UCICO will winnow out masquerading contractors who are in for short gains. UCICO Bill 2012 when passed by parliament will introduce structured grading of firms and contractors on a regular basis based on their performance, experience and commitment to become reputable construction firms in future.

The writer is the Executive Director of Uganda Road Sector Support Initiative (URSSI).

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Briefs

Uganda South Sudan road construction commences

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resident Yoweri Museveni will preside over the launch ceremony for the Uganda South Sudan road construction from Atiak to Nimule.

Abraham Byandaala the Works and Transport Minister of Uganda, told a Uganda television station well known as the Vision Online that the Uganda South Sudan road construction project will be constructed with support from the Japan International Cooperation Agency (JICA).

Abraham Byandaala said that ther expectation is to improve travel time between Uganda and South Sudan. Currently it is

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Byandaala explained that the NRM government is really emphasizing on the growth and maintenance of the country’s road network July - August 2015

horrendous passing through Kampala and at the border of Bibia with South Sudan which is an inappropriately long journey.

He continues to say that the building process will be undertaken by the China Railway Wuju (Group) business and supervision will be done by KOM Consult Ltd to ensure value for money is achieved.

Byandaala explained that the NRM government is really emphasizing on the growth and maintenance of the country’s road network.

Ever since 1986 up to date, over three hundred kilometers of main roads have been reconstructed. More roads will be constructed in a few years.

He continued explaining that other roads administration has set out to improve the roads at the Greater North region which include Vurra-Arua-Koboko-Oraba and Gulu-Atiak

Briefs

Construction Sector in Rwanda Gets a Boost

Rwanda’s sole cement producer, Cimerwa, plans to increase its production capacity to 600,000 tonnes annually when ongoing expansion works are completed early this month, Busi Legodi, the Cimerwa chief executive officer, has said

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ccording to Francois Kanimba, the minister for trade and industry, Rwanda’s industrial and construction sectors are expected to register strong performances by the end of 2015. “Construction and real estate are key sectors and potential major drivers of future economic growth in Rwanda, mainly due to the high demand for residential and commercial buildings,” said Kanimba.

“Statistics from the Rwanda Develop-

ment Board puts total housing needs in Kigali alone at 458,265 dwelling units. The government is keen to develop home-grown industries that will offer locally-made, world class products and, in the process, reduce the large bill we spend on imports.”

“We have moved from the previous green to a bold blue reflecting the refreshing nature of the business as we go through a rebirth and repositioning of Cimerwa. The previous logo was a closed diamond; the new logo is open, symbolising the bright future of the company and the journey we will be making together towards the top,” said Legodi Busisiwe, Cimerwa CEO. Cimerwa is finalising work on its new state-ofthe-art production facility in Bugarama, Rusizi. The plant, which will boost Cimerwa’s manufacturing capacity by six times, will commence production early in the second half of 2015. When fully operational, the plant’s production capacity will increase from the current 100,000t/yr to 600,000t/yr.

Legodi said that construction of the plant in Bugarama is now complete and is undergoing structured tests in line with global best practice in the cement manufacturing sector. “The testing phase, which is the most important in preparing the plant for production, will take at least two months. Our aim is to certify that the new plant operates efficiently and effectively when it is running fully and produce a quality cement to meet Rwanda’s growing demand,” said Busisiwe.

Market demand for cement currently stands at about 500,000 tonnes of cement per year, and the country depends mostly on imports. Meanwhile, Cimerwa has rebranded its corporate identity as it marks 30 years of existence

July - August 2015

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Events

Kenya to host major construction trade exhibition World renowned innovative builders and engineers are expected to attend a major building and construction trade fair to be held in the country in October.

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he expo dubbed Totally Concrete East Africa set to take place from October 26 to 28 in Nairobi comes at a time when myriad new properties are under development across the region with more construction sites cropping up almost on a daily basis.

In Kenya the Government has introduced regulations to allow Public-Private Partnerships (PPPs) to be used to develop new housing projects with currently 76, 000 units in the pipeline. In Ethiopia, the construction of the tallest building in the region is now underway by the Commercial Bank of Ethiopia, comprising 46 storeys.

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These represent just some of the projects that are shaping the project pipeline in East Africa and forging new market opportunities for cement manufacturers and other building material suppliers.

According to organisers of the three-day event, this October at Totally Concrete East Africa, the latest in building and concrete technology will be shared by leading construction entrepreneurs and innovators. It will bring together the region’s leading project owners to source and identify top contractors and suppliers.

The event is sponsored by ARM Cement and supported

he 18th international exhibition of building materials, construction equipment, wood machinery, and interior furnishings, The BUILDEXPO AFRICA is set to be the biggest and most comprehensive building and construction show yet in Tanzania, securing as much as 85% of exhibition space to date.

The BUILDEXPO AFRICA will be held from August 22 to 24, 2015 at the Mlimani International Conference Center, continuing the three-day tradition.

The BUILDEXPO AFRICA opened up avenues in the building and construction, interiors and infrastructure sectors in Tanzania when it was launched in 1996,

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by more than 15 local partners including Kenya Vision 2030, National Construction Authority of Kenya, National Construction Council of Tanzania, the East African Cement Producers Association, Kenya Property Developers Association and the Association of Citizen Contractors of Tanzania.

“Totally Concrete East Africa highlights the important role of all disciplines from designers, engineers and manufacturers to policy makers in ensuring that cement and other building materials are effectively used to benefit the developing construction industry in our region,” Architect and Interior Designer from Epitome

Architects in Tanzania, Petrina Manase Salema said.

“Not only will the event provide access to world renowned innovative builders and engineers, it will also provide practical training on how maximise building sustainability and structural integrity under local marketplace conditions,” statement from the organisers added.

Managing Director of Geoff Griffiths & Associates Geoff Griffiths will be there to unpack aggregates for concrete with an emphasis on quarry fines and control of moisture content in batching to allow for maximum concrete strength and structural integrity.

ARM Cement CEO Pradeep Paunrana, on the other hand, will discuss the design and application of high strength concrete in East Africa.

A bigger edition of The BUILDEXPO AFRICA set for August 2015 setting the stage for other shows of a similar nature to follow suit.

With the scale of the ongoing infrastructure and industrial development, evidenced by the multi-billion projects under construction and the recent tender announcements by the government, organizer Expogroup is placed at an advantage to turn its attention to untapped segments that are vital to the sector.

To add substantial value to the established show, companies and industry people will be treated to segments such as construction machinery, ceramic and marble, water technologies, green energy, mechanical electrical and plumbing (MEP), cement, concrete and steel, pool

July - August 2015

and spa, kitchen and bathroom, interior design, wood and woodworking machinery, and doors and windows.

The BUILDEXPO AFRICA exhibition manager comments “We are stepping up efforts to bring in international companies. With serious efforts to increase the market opportunities in Tanzania, we hopefully would help widen the scope of the country’s building and construction sector and put The BUILDEXPO AFRICA on the regional map.”

In addition, we are featuring some international pavilions with about,” he adds

Featured Developments

Sultan Palace converts derelict coastal quarries into East Africa’s largest water park

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eal estate developer Sultan Palace Development Limited is transforming three quarry sites within its 43-acre parcel of beachfront property, turning land derelict for more than 30 years into one of East Africa’s largest water parks, as a core feature for its luxurious beach retreat in Kikambala, Kilifi County.

The quarry sites were among many in Kenya abandoned because they were not well managed while in operation and lacked rehabilitation plans on the completion of operations. As a result, decades of coral mining by the locals degraded the land and rendered it virtually unusable, leaving quarries with a total capacity of more than 4,200 cubic metres after the locals abandoned the mining.

It is not until 2013 that the pits were considered as possible centrepieces of a development, thus seeing a rehabilitation plan for the quarries incorporated into one of Kilifi’s landmark real estate projects, Sultan Palace Beach Retreat.

“Mining and quarrying can leave permanent scars on landscapes and ecosystems. In one of the finest locations in Kenya, we found a considerable tract of land that had very limited use unless rehabilitated to fit into the project plan for the beach retreat,” said Liu Tiancai, General Manager Sultan Palace Development Limited.

The rehabilitation plan comes at time when the United Nations Millennium Development Goals and the World Summit for Sustainable Development Implementation Plan have recognised the restoration of land resources as a critical factor in achieving economic and ecological sustainability, stating that this requires innovative approaches.

It is for this reason that Sultan Palace Development Limited opted to reap the benefits of the

abandoned quarries by converting them into a new use. This has been achieved byleveling the landscape for a water park and investing in a tree nursery to beautify the unsightly site.

Normally, the pits would have been filled with soil, probably imported, but the developers of the holiday homes are instead turning the pits into swimming pools, a 1,000 square-meter water park and a water storage facility for the development.

“We are developing these neglected ditches around their existing condition to ensure minimum disturbance to the environment. As such, we opted to develop them and convert them into the centrepieces of the beach retreat while at the same time cutting the costs of putting up similar features on the other usable parts of the site,” said Liu Tiancai.

One of the quarries was put into temporary use as storage for much of the construction water, after which it will help address the challenge of intermittent water supply for Kilifi County Council as a water storage point. Making this kind of storage would normally cost around Sh20m, largely due to the excavation costs.

Another former quarry is now being developed as part of the water park.

It would have cost around Sh50m to develop at an alternative location of the site, representing a dramatic cost saving for Sultan Palace Beach Retreat. The water park will feature water play areas with water slides, tunnels, splash pads and lazy rivers designed to enable children to have active fun with an element of adventure.

The developer is additionally developing smaller quarries within the pool area

July - August 2015

of its prestigious and exclusive Diamond Residence villas into swimming ponds, with each pool at 30 square-metres.

For the quarries that cannot be rehabilitated, the developer aims to back-fill them with coral stones from the construction site, a cost-effective measure whose alternative would have been to ship in back-fill materials.

ABOUT SULTAN PALACE DEVELOPMENT LIMITED Sultan Palace Development Ltd. is a Kenyan real estate company owned by Jiangxi Xinyu Estate Development Company Ltd. who have experience of over 20 years in Africa and China in delivering quality and high end luxury properties that have won numerous awards.

Sultan Palace Beach Retreat, the latest in the multinational’s property portfolio is a Sh5bn development in Kikambala, Kilifi County comprising holiday homes – villas, condos and beach houses - located on 43 acres of exquisite beachfront property. The upcoming development is a modern fuse of Swahili-Arabic architecture geared towards creating a luxurious fun-filled holiday paradise.

Sultan Palace Beach Retreat will also feature facilities such as a souk, a five star hotel and various other amenities such as water park, club house, kids club, state of the art gyms among others.

The first phase of the project is set to be completed in December 2016.

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Advertorial

Rural Electrification Authority bets on solar to power 33 schools in Lamu and Tana

The Rural Electrification Authority (REA) in partnership with leading water and energy solutions provider Davis and Shirtliff has completed a Sh58m project to install solar systems in 33 public primary schools in Tana River and Lamu counties. This will see over 6,000 students in the two coastal counties gain access to electricity as the government moves to equip public primary schools across the country with laptops.

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July - August 2015

T

he partnership comes as part of the ambitious National Primary School Electrification project initiated in 2013, whose overall aim is the integration of ICT in the curriculum delivery to expand digital skills, as enshrined in the government’s agenda, through connecting 21,158

Advertorial public schools to electricity, according to the Ministry of Energy.

One of many similar undertakings geared towards implementing the government’s flagship laptops project, the installations in Tana River and Lamu counties targeted all primary schools that were more than five kilometers from the grid and could only be powered effectively through the use of solar modules.

“As not all schools are close enough to the power grid to pull electricity, there was a need for an alternative and lasting solution. Our partnership with Davis and Shirtliff resulted from the need to power the schools that are off-grid in Tana River and Lamu counties,” said Semeka Ong’ong’a, the REA Project Supervisor for the Tana River and Lamu installations.

Following a successful tendering process, Davis and Shirtliff, fitted each of the schools, 18 in Tana River County and 15 in Lamu County, with 14 solar panels and 10 batteries to power three classrooms, one computer classroom, the staffroom and the head teacher’s office.

“We have installed the best-in-class solar equipment that will serve the schools for many years to come. The equipment comes with a warranty of 25 years and we will be maintaining it for a year to ensure that it is working at its optimum capacity,” said Norman Chege, the Solar Division Manager at Davis and Shirtliff.

Immediately after the commissioning of the project, the schools have seen an increase in the number of students staying in class in the evenings to tackle their assignments. Initially, students would complete their assignments in dimly lit homes, which pose a danger to their eyesight.

The schools are also recording an increase in attendance for their adult education programmes, which are carried out in the evening after the regular school day comes to an end.

The Davis & Shirtliff project team faced some logistical challenges, largely due to poor road linkage across the counties, mainly in Lamu County, and the distances between the schools.

Schools in Lamu located near the border with Somalia also raised challenges following recent security scares, but the team was able to complete the project in time for commissioning.

“It was a challenging project, especially undertaking the installations in Lamu County. A number of the schools

are far flung and in remote areas. At times we had to transport the bulky equipment by boat between different parts of the border county, accompanied by between 5 and 10 KDF personnel to guarantee our safety,” said Mr. Chege.

The National Primary School Electrification project undertaken by REA is now in its final stages and has so far seen over 20,000 primary schools across the country connected to electricityand is expected to be completed before the end of the year according official sources.

Davis and Shirtliff has previously undertaken solar installations for schools in Daadab, where 28 schools benefitted through a project spearheaded

by Windle Trust in 2014. Also last year, Davis and Shirtliff connected an additional 16 schools in Dadaab to electricity through solar installations under a school electrification project by the Lutheran World Federation.

Davis and Shirtliff Limited is anAfrican multinational, operating through a network of branches in Kenya, Uganda, Tanzania, Zambia, Rwanda, Ethiopia, South Sudan, Somalia, Burundi and DRC. Founded in Kenya in 1946, it is the leading supplier of water-related and alternative energy equipment in East Africa.

July - August 2015

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Advertorial

B

ased in Brest, France, SDMO is one of the designers and manufacturers of energy generating sets worldwide and plans to open a new office in Nairobi next year.

Ryce Engineering was established 50 years ago and deals with global brand SDMO generators. We design, supply and commission stationery generators set (3kVA to 3,000kVA) suitable to meet the needs of the customers while maximizing efficiency with most cost effective configurations, both on Normal and Synchronized operations.

We also offer vital operational and maintenance services to ensure that there is minimal break down at any of the installed sites. We have in place skilled service technicians in various parts of Kenya who respond to emergency situations at site installations in a short period of time.

Ryce would wish to challenge all architects to consider putting up adequate space with enough ventilation for generators site while constructing buildings or apartments. These generators are environmentally friendly and energy saving both to the residents and at work places.

Ryce East Africa, a pioneer member of the Sameer Group, is located along Kampala Road, off Enterprise road in industrial Area, Nairobi. Ryce is also the main dealer for General Motors products including Isuzu, Chevrolet and Opel.

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Ryce Engineering Deals with SDMO Generators, one of the designers and manufacturers of energy generating sets worldwide and plans to open a new office in Nairobi next year

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July - August 2015

Property

Karibu Homes’ unique approach towards plugging Kenya’s housing deficit

The young property development company’s offering will make it easier for low-income earners to buy homes.

Through innovative application of commercial disciplines, it has ambitions to develop thriving communities that will have a significant social impact.

K

aribu Homes is currently constructing a stepping stone for Kenya’s struggling first-time buyers. Previously, access to the property ladder has been reserved only for those in the highincome bracket. But with a population that is growing exponentially, the need to provide adequate housing is essential to the social and economic future of Kenya.

Karibu Homes has stepped up to the plate. After establishing a clear relationship between housing and social fabric, Founder Ravi Kohli and his team decided to use their research to create a positive change.

“If the chronic shortage of housing is not addressed, slums will continue to proliferate and offer little hope to their inhabitants of escaping them,” says Ravi. “We didn’t want to just build estates or gated communities, we wanted to build surviving communities.”

Three years down the line, Karibu Homes is well on its way to making a difference with 280 low-income homes already under construction. The company’s unique understanding of the market hinges upon the makeup of its team. Lead architect Arthur Adeya grew up in an estate much like the ones Karibu Homes is hoping to create. He therefore provides invaluable insight into the wants and needs of the company’s target audience.

July - August 2015

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Property

Unique insight

Pairing this insight with regular focus groups ensures that every decision Karibu Homes makes is the right one for all its future tenants. The focus groups included future buyers that were afforded the opportunity to explain what they would really want from the community.

“We asked them what they wanted,” Ravi explains.

“For example, we have a crèche and we are going to have basketball courts, a community centre and shops as they are all an integral part of the community. This is all because we talked to people and a lot of our buyers, who were mostly women. They said they needed a crèche as they didn’t want to be out of work for too long.”

The buyers’ varying needs have led to variation within the estate, which offers a mixture of housing types at different levels of affordability. The houses are currently under construction on a site 700 metres off Mombasa Road at Athi River.

“The mixed-use estate will allow for the sale of higher-priced homes to help subsidise, to an extent, the most affordable homes,” says Ravi. “The development will include a central park area, commercial space,

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two nurseries complete with playgrounds and civic buildings to house medical care, police and postal services.”

With the construction of social buildings alongside the houses, Karibu Homes is hoping to build more than just homes –it is hoping to create communities.

“We want to build a sense of community,” explains Ravi. “The management of the community will be done by the community themselves, which is very important. By creating shops inside each building phase we are encouraging enterprise to grow in the community. We have also spent a lot of time focusing on green areas, so there is going to be a large green space that will double up as a market on the weekend.

People have asked us for places in the community like this for children to hang out so that they don’t get up to no good.”

By creating a sense of community within its residential areas, Karibu Homes will be providing its customers with a sense of purpose.

They will have more control over their own futures, which will hopefully lead to better social mobility in the country and help to bridge the vast gap between upper and working classes.

Affordability

In designing its affordable housing, Karibu Homes has drawn heavily from Kenyan culture and tradition.

“In Kenya it is quite common for people to buy a piece of land and just build a house over many years,” says Ravi. “So what we have done is taken that concept and said we are going to give you a finished shell. That allows us to keep the price point very low by removing vanity fittings and tiles. People can move into the house one day and then, when they have money, they can tidy it up in their own time.”

By eradicating the presence of luxuries in each residence, Karibu Homes has been able to create housing well within the budget of those from a low-income background. In the current housing market the most affordable homes all cost at least 5 million shillings; however, all but the most expensive houses in Karibu Homes’ rangeare priced well below this figure.

The company has opened up the market to a whole new demographic, providing security to those that once did not have it.

“The price point we offer allows people to buy a starter home,” says Ravi. “They can see their future in front of them with the variety of July - August 2015

homes that we have.”

This is all based on the company’s philosophy dedicated to providing hard working families with affordable, well constructed homes in thriving communities and providing them with a better quality of life.

Karibu Homes is not only changing the face of the housing market in Kenya but also providing opportunities to those who never thought they would have one. It is no wonder, then, that it has no plans of stopping after this initial project. The company hopes to expand so that it may change as many lives for the better as possible.

“By this time next year we are hoping to have acquired and secured our next plot, which should be a minimum of 50 acres of land on which we can build up to 3,000 houses and a mini township,” says Ravi. “We would also like to expand the brand into Uganda, Tanzania and Ethiopia as a start.”

Ravi has a final invitation to other property developers in the region, in the hope of making as big a difference as possible.

“We hope that developers will start looking at our market and decide to join us, because we are still pretty much the only ones doing it,” he concludes.

Advertorial

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July - August 2015

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Corporate Profile

A fervent pursuit of excellence, solid work ethic and superior customer care have inspired confidence in clients, cementing lasting relationships that have led to remarkable growth for

AEGIS DEVELOPMENT SOLUTIONS LIMITED (ADS)

By Eric Obwogi

KAREN HOSPITAL

H

andling the construction of the iconic Karen Hospital in Nairobi gave Dr. Philip Muchungu, the proverbial dream start after he formed Aegis Development Solutions Limited, a leading Quantity Surveying firm in Nairobi in 2003.

Aegis Development Solutions was started on Handling the construction of the faith.

In the year 2003, iconic Karen Hospital in Nairobi the country had just gave Dr. Philip Muchungu, the come from an election, proverbial dream start after he formed Aegis Development money was scarce and Solutions Limited, a leading nobody was developing.

Quantity Surveying firm in Consultancy firms were Nairobi in 2003. struggling some consultancy firm’s principals were diversifying into other sectors. Some friends and family thought the founding director had made a mistake leaving a senior position in the oldest Quantity Surveying firm to start a young firm without history. The principal wanted however to make history o starting in difficult times as it couldn’t get worse. Just coming after elections, others believed that Dr. Muchungu must have had a godfather in the new regime to take such a bold move.

Dr. Muchungu being a spiritual man would answer,”

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Dr Muchungu, Managing Director, Aegis Development Solutions ltd

others have god fathers to grow, our firm has God The Father on our side.” What others didn’t see was opportunity from being a Senior Project Manager to a “Managing Director”, for a new firm, the leap couldn’t be higher.

In an interview with the EA Infrastructure & Engineering Review, Dr. Muchungu wistfully remembers the challenges of the first major project for the firm trying to prove itself as equal to peers who had been in the industry for decades and working with equally seasoned team members in

July - August 2015

Corporate Profile

the consortium. This was the largest ever single project in the healthcare sector at the time. Many hospitals having grown from small units and clinics over time, a unique undertaking as it was to be designed and built from scratch.

With a reasonably big and complex project well executed, Aegis Development Solution Started big. ADS has since never looked back. Project after significant project, client after satisfied client, Aegis has ultimately earned respect and inspired confidence in an increasingly sophisticated and discerning clientele. The company has been involved in various landscape – defining projects in Kenya, and continues to retain high-profile clients in its portfolio.

Based on a reputation for professionalism, innovation and on-time delivery of projects, the star of Aegis Development Solutions has steadily risen. The company has the capacity to handle of projects of any magnitude, complexity and covers all aspects of construction project procurement and management. Its operations are focused on offering dynamic solutions to challenges facing project inception and implementation.

Growth has been steady but cautious.

“We have grown bigger by retaining our clients (we have never lost any), while steadily attracting new ones. However, there is danger in growth. Losing personalized service with your old clients is a possibility that will lead to losing their confidence, as consultancy is a highly personalized profession, good support system notwithstanding.

Uncontrolled growth may mean that clients are very far-flung, and the company may not deliver projects to the desired standards. Clients want to see you most of the time for reassurance.” ADS has been able to manage this by the keeping at pace in terms of staff development and operation efficiencies that improve productivity.

With his mind firmly set on success, Dr. Muchungu learned from the failings of his others. Aegis Development Solutions Limited has relentlessly sought to offer excellent personalized service to developers, and to meet the challenges of the profession in terms of accuracy, speed, thorough understanding of design and construction techniques and appreciation of clients’ requirements and above all not taking any assignment for granted.

Leveraging on technology has enabled the company to innovate and to work fast in order to deliver a remarkable number of projects. Its team of professionals has a formidable wealth of experience and expertise in all aspects of Quantity Surveying and Project Management gained from working with some of the leading consultancy firms both locally and abroad in very challenging capacities and projects. The company offers them a solid support system to enhance their rate of delivery.

The Aegis team provides clients with a high level of financial analysis and management advice that is necessary to make informed investment and development decisions. In this way, ADS has formed lasting

WƌŽƵĚůLJ ĂƐƐŽĐŝĂƚĞĚ ǁŝƚŚ Aegis Development Solutions

July - August 2015

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Corporate Profile relationships with clients. With good work, word goes round and enquiries pour in with opportunities for more jobs, and further growth. This has been the trend for Aegis.

“Our main way of getting work is through referrals, concentrating more on the private sector which is more demanding in terms of accuracy, quality of information and turn-around time,” says Dr. Muchungu.

Dr. Muchungu, who also has a teaching background, reiterates that a company’s people are the lifeblood of its very existence and have to be kept motivated and encouraged to maintain a decent work ethics at all times, for organizational and personal growth.

Staff is kept up to date with the current state of affairs in the Quantity Surveying and Project Management field through attending seminars and conferences that are hosted and attended by professionals of global repute.

The technical resource pool gives Aegis the ability to handle all kinds of projects irrespective of their magnitude and complexity in the region. Aegis’s main endeavor is to offer solutions with highly personalized service that meets the client’s specifications of highest quality by any standards at all time.

ADS has undertaken a significant number of projects in the region which include but are not limited to office blocks, industrial and residential buildings, health, education, hotels and hospitality, and bank Premises as well as refurbishments and interior fit out works for upgrade of various

structures. The firm has association with consultants and firms both locally and internationally who are called upon on selected projects.

Currently Aegis is undertaking some key projects like the Export Processing Zones of Rwanda, which had various phases currently undertaking its 3rd phase in its five year run.

Aegis is evolving to corporate status, so that the clients will be dealing with a vibrant Aegis Brand. Dr. Muchungu acknowledges that it takes time for an organization to improve and achieve its mission and function as solid unit where everybody knows what everybody is doing. There is a stream of information for directors, technical arm and the support employees, so that client queries may be handled efficiently. The Managing Partner may play the oversight role and at the end of the day service is delivered and Aegis marches on.

Five years

Aegis corporate status will have become of age and will require new blood to take it to the next level. “In five years, I don’t want to be here,” says Dr. Muchungu. He believes that Aegis is firmly on the right track, and ripe for new blood to take the leadership reigns. He is however is quick to state that retirement does not mean shuffling around with a walking stick, but maintain policy oversight, and perhaps mentorship role.

Plumbing, Building & Engineering Contractors Sanitary, Solar Systems, Fire Fittings & Sprinklers Installation

Shree Hari Business Park, ICD Road, off Mombasa Road, P.O. Box 5111-00506 Nairobi-Kenya / Tel: 020-2081507 E-mail: plumbuild@keraibrothers.com, plumbuild2010@gmail.com

We are proud to be associated with Aegis Development Solutions Ltd. as MAIN CONTRACTOR

We are proud to be associated with Aegis Development Solutions Ltd

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July - August 2015

Corporate Profile

Vakkep Building Constructors Limited With an impressive project portfolio spanning over four decades, the company is capturing the spirit of qualitative growth in the construction industry. Profiled by Eric Obwogi

Elysee Plaza

Metalart Engineering Limited Mechanical Engineers, Structural Steel Fabricators - Roofs and roller shutter doors, Steel Hand Rails, Elevated Tanks & Towers, Steel Pipe and Pipe Fittings Manufacturers

We are proud to be associated with Vakkep Building Contractors Limited in the Simba Colt Motors project as their main steel fabricator for steel roof and roller shutter doors Off Mombasa Road, Opp. Total Petrol Station.

P.O. Box 17728 – 00500 Nairobi Tel. 3514058 / 8029481 / 2 / 020 2076728 Cell: 0722 809788 / 0734 907802 Email: metalart.engg@gmail.com info@metalartengg.com

July - August 2015

T

he building and construction industry in Kenya today has undergone a remarkable transformation and witnessed immense growth in the past few years.

Demand for high quality construction services has triggered intense competition among local contractors, prompting firms to pull up their socks to on the growth curve of an increasingly sophisticated property market.

Vakkep building Contactors has been in existence since 1970. In this period, the firm has been in the thick of things, the expertise and experience of its professionals clearly evident in the buildings that the company has under-

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Corporate Profile taken over the years in East Africa. The company’s management has emphasized on efficiency and flexibility to not only remains competitive, but also to adapt to the dynamic and changing business environment that the company operates in. Coupled with investment in modern equipment and technology, these have been the hallmarks of the company’s longevity and achievement, evident in the numerous completed construction works that it has delivered.

One of the greatest pillars of strength at Vakkep is a recognised quality of work. In every building project that the company undertakes, the very best in workmanship is pursued no matter how complicated the design or the site. In addition, the management ensures that the work is done with the utmost integrity, with no litigation reported to date.

Vakkep has delivered an impressive number of prominent structures in Kenya - all varying in design and concept, from huge housing projects to industrial plants, hospitals, hotels, office complexes, commercial blocks, churches and aviation infrastructure.

Nairobi Safari Club

Innovative

The projects have been both challenging in concept and exciting in design. But they have all been delivered with close and painstaking attention to specification, and astute interpretation of architects’ design innovations. Clear testimony to this is Lillian Towers, which houses Nairobi Safari Club, an architectural masterpiece that won Symbion International (architects) the Gold Award for excellence in architecture, and which earned Vakkep Building Contractors high-level commendation for the topnotch finishes, direct management and expert supervision works.

Capital Hill Center on Upper Hill, also stands out among Vakkep’s Building Contractors’ high achievement projects due to its unique design of beautiful hanging gardens and magnificent red brick finish. Its allure attracted the shooting of an international Indian theme movie a while ago. This movie entertainment theme is also aptly captured in related projects handled by Vakkep such as the 20th Century Cinema Plaza and the Kenya Cinema Plaza, where the

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July - August 2015

Corporate Profile company did refurbishment work for Fox Theaters Limited.

The world famous Safari Park Hotel & Casino on the Thika Super Highway, another of Vakkep’s undertakings, sits on 64 acres of leafy land. It is designed to resemble a magnificent African Village with hut shaped shingled roofs dotting the landscape. Vakkep also includes the refurbishment of the Hilton Hotel, which involved a facelift of the bedroom corridor, public areas, health centre and tower pool deck.

Vakkep also built Platinum Hotel at Yahya Centre.

The office and shopping projects on Vakkep’s portfolio have come in various magnitudes all delivered to the expected high standards of quality, on budget and on time. Some notable ones

The world famous Safari Park Hotel & Casino on the Thika Super Highway, another of Vakkep’s undertakings, sits on 64 acres of leafy land

Industrial ArĞĂ͕ Kī nterprise Road, Busia Road II P.O BOX : 22525-00400 Nairobi Tel/Fax : 020-6650353 | Tel : 020-2613080 Mobile: 0722-686050 | 0733612251 ͘ŵĂŝů͗

July - August 2015

include K-Rep office block, Timau Plaza – an eight storied bloc for the CBK Pension Fund, Esso Plaza, the imposing KenGen Plaza, Ruprani Building, IPS Building in Nairobi’s Central Business District (CBD).

Vakkep handled the refurbishment and conversion of Bishops Garden flats to offices, Caltex Plaza (Regal Plaza), Medical Arts Centre, Simba Colt Motors and Waumini House among others.

Banks

Vakkep has built Extensions for NIC Bank, Finance House for Development Bank, the former ABN Amro Bank offices, Barclays’ Bank of Kenya – Kerugoya and Hurlingham branches and Credit Bank Building on Koinange Street.

Industrial and office complexes include: KPLC extensions, roofing work for Stima Plaza, phase I and Phase II, Simba Colt Motors Development Ltd. – offices and warehouse, a paper factory and warehouse for Madhupaper International Ltd, KCC Mombasa Creamery factory complex and warehouse. BAT SMD factory and office block, phase 1 and two, and three storey warehouses on Likoni Road. There is also the BAT Green Leaf Threshing Plant and Large warehouse complex and a medical factory complex for Laboratory and Allied Equipment Limited.

Other projects are drawn from the private residential segment and include both individual luxury homes and apartments. Recent projects include Elysee Plaza developed by Ravasam Development Company Limited, and Serene Valley Apartments, a block of 62 luxurious apartments on Upper Hill for Marlborough Properties Limited.

Vakkep has also built churches and its footprint in the health sector is featured in the Mater Misericordiae project.

The firms work also diversifies to civil works as exemplified in completed drainage works such as Nairobi’s Uhuru Park Drainage rehabilitation among others.

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Corporate Profile

On-going: Simba Colt Motors project, Westlands

Equipment

Vakkep Building Contractors boasts modern construction equipment that has contributed to its efficiency and boldly declares its ability to purchase or hire any further plant and equipment necessary for any particular requirement. The company also pays attention to efficient transportation of personnel, materials and equipment both on and off site.

The management of Vakkep Building Contractors greatly values the importance of professionalism. This is why staff members at all levels, from senior management, administration to technical personnel are highly trained and qualified in all critical areas, and sufficiently equipped to deliver quality throughout the construction process, a consciousness that distinguishes the firm as a front-runner in the construction industry. The central aim is customer satisfaction.

Vakkep Building Contractors has effectively captured the spirit of an all round contractor, and is poised to play a leading role in the growth of the construction industry in Kenya.

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July - August 2015

Corporate Profile

Chartwell Insurance Brokers Limited Provides Insurance Management and advisory Services with a Personal Touch

By Eric Obwogi

Since its incorporation in 2010, Chartwell Insurance Brokers Limited has grown to become a leading provider of insurance products and services, generating its business from all lines and clients regardless of size and orientation.

I

n its fifth year of operation and growth, CIB sets out to be the best service company in the industry relative to overall performance and attention to customer needs. The company also seeks to provide a wide array of quality products and services that maximizes value to its clients and sets out to be recognized an innovator in enhanced products and services that solve customers’ problems and reduce costs.

In the construction industry, CIB has leveraged on significance experience and expertise gained over time by its people.

Mr. Francis Irungu, its founding director and CEO has worked with various large insurance firms in Kenya at senior level, exiting the employment ranks after being at the helm of one of the largest insurance companies in the market, to form Chartwell Insurance Brokers Limited.

The company has several products

tailored for the construction industry, including the crucial performance bond insurance, a surety bond issued by an insurance company or bank to guarantee satisfactory completion of a project by a contractor.

CIB also offers Contractors/Engineering Companies various classes of insurance brief description of which is given below: Work Injury Benefits Acts (WIBA) insurance This cover protects employers should their employees sustain bodily injuries, disease or even death arising out of and in the

July - August 2015

course of employees’ duty.

Employers’ Liability cover protects employers against legal liability under common law, negligence or breach of statutory duty for damages and claimant’s costs and expenses of litigation in respect of accidents, diseases or even death to employees happening in the course of employment. It is therefore necessary that employers’ liability insurance be arranged in addition to WIBA policy which is compulsory by law.

Contractors All Risk (CAR) which offers comprehensive and adequate protection loss or damage against loss or damage,

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Corporate Profile or bodily injury arising in connection with the execution of the contract. It also covers construction plant and equipment and / or construction machinery as well as against third party claims in respect to property damage or bodily injury arising in connection with the execution of the contract.

Erection all risk (EAR) that offers comprehensive and adequate protection against all the risks involved in the erection of machinery, plant and steel structures of any kind as well as third party claims arising from the execution of the project.

Machinery breakdown The cover was developed to grant effective insurance cover for plant, machinery and mechanical equipment at work, at rest or during maintenance operations.

The policy covers the insured machinery defined in the schedule, against any unforeseen and sudden physical loss or damage from causes such as defects in casting and material, faulty design, faults at workshop or in erection. Damage may have also resulted from Bad workmanship, lack of skill, carelessness, shortage of water in boilers, physical explosion, tearing apart on account of centrifugal force, short circuit, storm, or from any other cause not specifically excluded.

Electronic Equipment Insurance This is “accident” insurance on an all risk basis, covering sudden and unforeseen losses which physically affect the equipment insured.

All risk insurance This policy covers ac-

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“Our client is paramount and we always act on their behalf as a professional extension of their own internal capability,” cidental loss or damage or destruction to the insured property as a result of any cause that is not specifically excluded under the policy. This is the widest form of cover available to property.

This policy, however, does not cover loss or damage due to theft, war, tear and wear, faulty manipulation, loss of money, bank notes or property in transit.

Other insurance products offered by CIB include motor insurance, fire and peril, consequential loss (Loss and Profits), money, public liability and marine cargo insurance. Others are fidelity guarantee, goods in transit and group personal accident insurance.

The company works with notable insurance giants including UAP Provincial Insurance, Fidelity Shield, ICEA Lion, Jubilee Insurance, Kenyan Alliance, Metropolitan Canon Assurance, Britam , Real Insurance and Takaful Insurance of Africa among others.

Due to the realization that clients expect nothing less, CIB strives to deliver the highest levels of customer service and product excellence. That is one reason why the “Circle of Operational Excellence” is discussed with clients — ensuring

that they are aware of their coverage options for commercial insurance, personal insurance, and life, disability and group benefits.

“We take pride in taking customer service to another level! We value the relationships we have built with our clients and insurance companies,” says Mr. Irungu.

He states that underlying this strong bond, based on an attitude of partnership, is commitment to professionalism, which has earned the company many client referrals, — likely, the best compliment for any business.

“Our client is paramount and we always act on their behalf as a professional extension of their own internal capability,” he adds. CIB’s position of strength is buttressed by the longevity of its relationships with clients.

This has a profound impact on the delivery on the promise of quality. From staff training to technology investments, systems are fine-tuned and people empowered to deliver a topquality solution for clients.

As an example, much of the company’s operations are paperless, which helps to ensure client files and information are available on a confidential basis to any licensed team member. A client’s call can be effectively handled even if the regular contact is out of the office. To this end, the July - August 2015

company has also retained individuals who can exercise sensible judgment and apply their experience, training and knowledge.

CIB has achieved a solid reputation for quick claims handling promptly, fairly and emphatically. Attention to all claim reports start early to avoid delay in processing .

Integrity CIB is recognized in the industry and among clients for its strong experience, responsive client service, excellent product knowledge, pro-active risk management and loss control, and its unique Claims Advocacy processes. Taken together, these elements help the company deliver on the core value of integrity. The company prides itself in being a trust-based business that employs individuals that recognize the benefit of, and the necessity of the highest ethical standards.

With a vision to be the preferred broker in the provision of world class risk solution, the company is customer driven with quality services and products that conform to mutually agreed upon requirements. With a goal to perform its functions correctly the first time, the management strives to become the role models in the insurance industry.

Corporate Profile

General Liability Insurance

for Contractors, Builders & Other Construction Professionals Adapted by Eric Obwogi

Construction and contract work encompass some of the most diverse occupations, and with this diversity comes a number of risks. While some contractors and construction businesses have storefronts that clients could visit and potentially sustain an injury on the premises, others install drywall or kitchen cabinets in homes and could be held liable for the products if they inadvertently cause harm.

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ontracting and construction business owners rely on adequate General Liability Insurance to safeguard their business against the mounting risks of potential lawsuits over accidents, injuries, and illnesses — especially in today’s litigious environment.

Read on to learn how you can protect your contracting or construction business and yourself from events beyond your control with General Liability Insurance.

How General Liability Insurance Protects Construction and Contracting Businesses How General Liability Insurance Protects Construction and Contracting Businesses Contractors benefit from General Liability Insurance in three ways: • General Liability coverage protects your business assets. If a third party alleges bodily harm, injury, or property damage, and you don’t have General Liability

coverage, your contracting or construction business assets could be seized to pay the judgment.

• General Liability Insurance offers a survival plan. This coverage ensures your contracting or construction business can survive if a judgment is passed, and cover court costs and settlements up to the specified policy limits.

• General Liability gives your contracting or construction business and your employees security.

With this coverage, you can carry out daily work knowing you and your employees are protected from uncertainty. General Liability coverage protects your business against claims brought against the company as a whole, as well as claims brought against individuals employed by the company.

For a contractor or construction business, General Liability Insurance offers the peace of mind that their contracting or construction business will have the necessary funds to continue daily operations — even when faced with a costly claim.

General Liability Insurance covers the legal fees that can easily bankrupt a small contracting or construction July - August 2015

business, such as the cost of attorney fees, witness fees, court expenses, and more.

After a lawsuit, General Liability for construction and contracting businesses can be the difference between never opening your business doors again and weathering the storm still on your feet.

General Liability Insurance may also include business interruption coverage, which might cover revenue lost while you’re in court defending yourself against a claim. Talk to your Insure on agent to learn more about your General Liability coverage options.

General Liability Insurance for Construction and Contracting Businesses: Key Details General Liability Insurance for Construction and Contracting Businesses: Key Details As you consider your coverage needs, it’s helpful to know the kind of claims General Liability Insurance safeguards your contracting or construction business against — and what it doesn’t. Take a look at the types of third-party claims typically covered by General Liability Insurance for contractors, and be sure to ask your Insureon agent about the policies that fit your business needs.

Bodily Injury Claims

As professionals in a labor-intensive industry,

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Corporate Profile builders and contractors know that no matter how careful a business is, accidents happen, especially when untrained visitors enter a worksite.

With General Liability Insurance, though, you have the protection your small contracting or construction businesses needs against these all-too-common accidents and lawsuits.

In the event of an accident on your business premises, these policies pay for medical expenses, funeral expenses, and courtawarded compensation if a third party’s injury results in death. While General Liability covers injuryand illness-related expenses for third parties, your own employees’ on-the-job injuries are not covered under this policy.

For the protection your employees need on the job, consider purchasing Workers’ Compensation Insurance as well.

Property Damage Claims

General Liability Insurance protects your contracting or construction business against the high cost of a lawsuit if someone alleges that your business damaged their property or that your business is responsible for their inability to use that property. For contrac-

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tors who work in remodeling, it’s important to note that property damage liability coverage typically does not cover damage caused to client property you are working on.

Completed Products Claims

General Liability Insurance policies can protect your construction or contracting business against claims related to the services you’ve completed and the products you’ve produced. So if, for example, your business inadvertently installs kitchen cabinetry with unstable shelving that ends up injuring the homeowner, your contracting company could be found liable. With the proper coverage, however, your legal expenses and any damages can be covered, up to your policy limits.

Personal and Advertising Injury Claims

If you advertise for your contracting or construction business, you may want to consider a General Liability policy that covers copying another party’s advertising or infringing on copyrights or brands. Allegations that your contracting or construction business caused non-physical damages to another person or entity are all too common when competing with other businesses in the same industry.

Medical Expenses Claims

Should an accident happen on your business premises to someone who is not employed by your contracting or construction business, General Liability Insurance July - August 2015

covers the expense of the injured person’s medical attention. Remember if someone is hurt on your property that you insist they seek medical assistance immediately. From an insurance standpoint, it’s better to compensate for immediate medical costs, such as a trip to the ER, rather than risk the liability for not attending to the situation right away.

Protect Your Construction or Contracting Business Protect Your Construction or Contracting Business Don’t leave your contracting business vulnerable to chance. Contact an Insureon agent today, and one of our licensed agents will help you assess the risks associated with contracting or construction, and ensure your contracting or construction business is protected with a General Liability policy that leaves you secure.

Corporate Profile

Apex Systems Consulting Group Limited Strathmore Business School

One of Kenya’s well known engineering firms, Apex Systems Consulting Group Limited is marking its 10th anniversary this year, celebrating a period of remarkable growth. By Eric Obwogi

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pex Systems Consulting Group Limited is an indigenous owned and managed Kenyan firm of civil and structural engineering involved in engineering designs and construction supervision, operating mainly in the East African countries of Kenya, Uganda and Tanzania.

The practice was founded in March 2001, initially as a sole proprietorship but restructured later to respond to expanded workload and changing operating environment. The firm is to date, a limited liability company with the majority shares held by the professional engineers of the firm.

After its formation, the firm initially concentrated on buildings. Since then the firm has expanded its engineering designs and construction services in the other types of civil engineering works, including transportation, infrastructure, and effluent treatment. The range of clients has expanded correspondingly to encompass private clients, public departments, and other consulting firms.

Norkun Intakes Ltd is proud to be associated with Apex Systems Consulting Group

+254 (0)729 381 360

ISO 9001:2008 CERTIFIED July - August 2015

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Corporate Profile

KWALE SUGAR-FACTORY

Apex Systems has had a steady and a gradual growth since inception.

In order to broaden the scope of the services available to its clients, and to have the benefit of experience, the firm maintains associations with other reputable consulting groups and independent consortiums. These associations, secured by either long term or ad hoc agreements, provide, inter alia, for technical cooperation, interchange of staff and joint-venture activities, in the process exposing Apex Systems to considerable experience and the latest developments in the industry.

The firm maintains an equipped Survey Section for the routine day-today topographical surveys. In addition to the permanent staff, the firm maintains standing agreements with various external experts to ensure that relevant expertise is made available within the shortest possible period for contracted assignments.

PROPOSED NHC HOUSING SCHEME, KANYAKWAR, KISUMU

Fields of Specialization • •

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The firm provides consultancy services in the following principle fields Buildings including Building Services (Civil and Structural

July - August 2015

CACTUS APARTMENTS, NAIROBI

Corporate Profile • • • • • •

engineering services) Transportation Urban & Rural Development Water Resources, Wastewater & Industrial Effluent Treatment Rural and urban Water Supplies, Drainage and Sanitation Dams, Water pans and Irrigation Marine Engineering

The company’s range of services provided covers: • Project identification, preparation, and pre-investment studies • Civil and Structural engineering, Topographical, Geotechnical and investigations • Traffic surveys • Feasibility studies • Financial, economic, and marketing studies • Master plans • Tender documents and bid evaluation • Contract administration and supervision of construction

IKON BILLBOARD

Fields of specialization Apex Systems provides consultancy services in the following principle fields • Buildings including Building Services (Civil and Structural engineering services) • Transportation • Urban & Rural Development • Water Resources, Waste water & Industrial Effluent Treatment • Rural and urban Water Supplies, Drainage and Sanitation • Dams, Water pans and Irrigation • Marine Engineering

Quality Assurance Design of the various projects is routinely carried out by use of appropriate computer software. In all cases well-qualified engineers and professionals undertake the assignments needed for various contracts. The Principal Director of Apex Systems Limited, Eng. Joshua Kinoti Irea has over 20 years July - August 2015

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Corporate Profile At the main office located at China Centre, Off Ngong Road, the firm has invested in technical equipment and made the office as self-contained as possible in terms of communications and preparation of technical documents GENERAL MOTORS

industrial experience. He has been project manager for several projects and is registered by the Engineers Registration Board as a Consulting Engineer.

The total number of permanent staff is made up of 8 engineers, the firm maintains an equipped Survey Section for the routine day-to-day topographical surveys. In addition to the permanent staff, the firm maintains standing agreements with various external experts to ensure that relevant expertise is made available within the shortest possible period for contracted assignments.

At the main office located at China Centre, Off Ngong Road, the firm has invested in technical equipment and made the office as self-contained as possible in terms of communications and preparation of technical documents.

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Investment has been made in the technology in order to enhance efficiency and ensure that clients are offered unrivalled services. This has been achieved by utilizing the latest computer software and hardware capable of producing high quality design, as well as to aid in the technical tasks and in routine office work. The company’s management has ensured that computer equipment and relevant software is available and optimized at all times.

AutoCAD is the main drafting medium, while design calculations ranging from reinforced concrete and steel to water and sewerage are routinely performed using industry standard software. A good stock of industry standard software for word-processing, spread sheets, and database management is also maintained to aid in day-to-day running of the office.

NATIONAL OIL

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Corporate Profile

Chigwell Holdings Limited is achieving phenomenal growth and receiving compliments.

With housing products that complement lifestyles, Chigwell Holdings housing products make a statement of quality and intent that has not gone unnoticed. Phenom Park, Phenom Estate and Sidai Village are ultimate developments of splendor, meant for the suave sophisticates who demand value for money. These housing products add a new dimension to better living.

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Corporate Profile Phenom Estate was a pilot project that opened the eyes of the investors in regard to navigating the tough terrain that can accost investors in the sector with minimal or no basic knowledge of the nittygritties that make a world of difference when stepping into the property market.

According to Chigwell’s Director Mr. Nirish Shah, the company started when a group of investors with over five decades of collective experience from diverse professional backgrounds related to the property market, came together with the intention of venturing into the vibrant Kenyan property market. The middle income in its entirety –lower, middle and upper middle – class presented the rosiest opportunity and the group decided to put their eggs in this basket.

It is a constant and risky drive going against the grain to find newer and better ways to innovate the industry and this the Directors of Chigwell achieved with diligence. After initial challenges breaking ground in their new venture, striving to live up to expectations, guarding reputations carefully natured over the years, Chigwell Holdings has indeed gone on to be an influential player in the property sector and in the process, touch multitudes of lives.

Most of the company’s clients are in the upper middle income market segment, comprising senior executives working in professional fields including banking, NGO’S and insurance just to mention a few.

The developers, Mr. Nirish Shah & Mr. Palkesh Shah travelled widely to add on to their repertoire

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“We always keep that in mind.

The Kenyan buyer seeks value for money and the minutest of details has a bearing on his decision.” of ideas to develop a unique housing concept that is Phenom Park. Direct involvement in the projects and in-depth knowledge of the Kenyan buyers’needs continues to work favorably for Chigwell.

Located behind Wilson Airport off the main Langata Road, Phenom Estate has four phases comprising 75, 85 95 and 88 luxurious four bedroomed maisonettes, 12 shops and a community center with an auditorium, swimming pool, gym & basketball / tennis court.

In the run up to starting the Phenom Park venture, it was decided that the developments be varied to cater for different tastes and market segments. The developers travelled quite a bit in their research endeavors on what to put up. What they came up with was a concept thatCompliments lifestyles.

The design is set up in three split-level floors. A split-level home is a style of house in which the floor levels are staggered.The interior finishes have been specially imported for this project.The units have huge windows to allow in lots of natural lighting and fresh airflows. The attention to detail and innovation is amazing, intended to enhance customer care, ensuring that residents’ living aspirations are met and exceeded.

This unique cluster designed project is a mix comprising of residential units with communal amenities and a commercial shopping area. The complex comprises 4 July - August 2015

Corporate Profile

bedroomed semi-detached town houses plus servant’s quarter, an additional family room and a roof terrace.

The views from the roof terrace are breathtaking and allow outdoor living within the comfort of your own house.

Extra facilities will include cabro-paved driveways and parking, landscaped garden, and a large recreational and community centre. This is a gated community whose security is bolstered by an estate boundary wall with electric fence, and one main access gate to enhance security. Each cluster has its own separate gate too.

“We will have a twotier management system within Phenom Park with each cluster, consisting of between 20-24 units, having its own gate and management which will be linked to the overall management of the estate,” says Nirish.

He adds: “This ensures

efficiency in each cluster on top of the general management and creates management competition between the clusters.” This healthy competition ensures that the estate is well managed and the residents get the best services and facilities.

All this was achieved with the mind-set that the Kenyan home buyer has become increasingly sophisticated. They are individuals with strong convictions, openly talk, ask questions, and consult widely. They are therefore knowledgeable, tech savvy and in touch with developments on the international scene,” says Nirish.

“We always keep that in mind. The Kenyan buyer seeks value for money and the minutest of details has a bearing on his decision.”

Surprisingly, Nirish says that Sidai Village, Chigwell’s second project was a learning experience.They actually accrued losses resulting from the construction cost upheavals of 2006 which hit virtually every aspect of the Kenyan property industry.

There Undeterred, Chigwell went on to complete one of the most attractive affordable properties in the area and sell it out without transferring the huge additional cost to home buyers.

It has been 10 years.

No journey towards success is ever that smooth. There are always challenges along the way. “Many times people question whether you will deliver, and you are always under scrutiny, from stakeholders as well as the market and thecovered market niche. Here management experience comes into play to result in success,” Reputation and experience of the company’s directors has worked wonders for Chigwell. Also, their passion

for building and developing superior housing projects gives them the required momentum to overcome any huddles on the way.

Mr. Nirish & Mr. Palkeshare individuals who value quality with no shortcuts.

The development has to be within budgets set out, while looking at the venture as a long-term investment. Thus they are able to provide higher value to the buyers.

They remain forthright about prices and make buying property with Chigwell as pleasurable and friendly as possible, and endeavor to treat home buyers as partners, who are clear on the amount of financial outlay expected.

“A Client should never feel cheated. Though there is always a reason for changing price structure, this is made clear to our partners,” says Nirish.

At Chigwell you get total assistance and guidance on what to avoid and what to opt for in mortgages. Chigwell’s executives provide link-up to financing partners who offer preferential treatment to the clients.

Guidance is also offered to first time buyers on the legal pitfalls that they mayencounter on their way to buying property. For instance, the requirement that 5% of the eventual price has to be set aside for stamp duty, legal fees and bank charges is often overlooked in the budgeting process by the buyers.

Regular newsletters are sent to buyers to update them on the progress of the project and whenever a new project or phase is launched, all existing buyers get an option to buy / choose first at a special price. “It is important to note that over 30% of our July - August 2015

sales are generated through referrals. Our existing clients are our biggest ambassadors because of how we treat them and the value we provide” adds Mr. Nirish.

In pursuit of excellence, Chigwell has not gone unnoticed, and has won numerous recognitions and nominations within the continent. In Kenya, Chigwell received awards as a distinguished top tax payer for two years running - 2013 & 2014 by the Kenya Revenue Authority. The Company was among the 100 Midsized Club of 2013 and graduated in the much sought after Club 101 in 2014.

As a socially responsible corporate citizen, Chigwell has undertaken numerous projects; key among them is the Women4Cancer initiative - aimed at creating awareness in the society and empowering women to take a positive role in the detection, early understanding and fightagainst cancers. Another sponsorship is the annual Globathon at Karura Forest which is a coalition of 80 plus countries to create environmental awareness & research on Gynecological Cancer. The Chigwell sponsored Sigona Golf Tournament has also grown popular because of the increasing number of participants annually.

Chigwell is setting standards in the housing industry.

The Company plans to continue developing quality properties in the years ahead. The company plans to expand beyond Nairobi, underlining their confidence based on conviction that they have adequate capacity to deliver the highest possible standards that its clients have now become accustomed to.

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CONSTRUCTION

Top 5 reasons to why modular construction is on the rise in Africa

Africa’s population is on the rise; better housing is becoming a necessity and thanks to technology advancement that saw the introduction of modular housing.

Currently the construction of modular buildings is on the rise and they are being used for high-rise apartments in countries across Africa like South Africa, Namibia, Kenya, Nigeria and even Ghana.

This method of construction did not start in Africa though today 98 percent of contractors, 98 percent of architects, and 99 percent of engineers use prefabrication and modular building methods.

Here are some of the top reasons why this type of housing is on the rise.

1) A shorter build time No one likes to consume more time in developing a house, therefore the populous Africans are opting to consider modular construction for it takes a

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shorter time to plan and build.

The modular housing foundation and the building can be built at the same time.

Factory-based pre-fabrication also speeds up the process, giving modular construction an average 20 to 30 percent time savings over traditional construction hence saving time and cost.

2) A quicker return on investment Real estate business is on a boom in the African market and most companies have opted to venture ito the risk free business because housing is a necessity.

Companies therefore have considered turning around to the quicker modular buildings in order to bring income too fast for them.

3) Increased cost-savings The Modular construction buildings can cut costs by 20-30 percent compared to July - August 2015

the normal buildings. That results from the shorter time used in building and less labor needed that saves overall cost of construction.

4) No weather-related construction issues – Africa’s weather is in most countries is unpredictable therefore this won’t affect the Construction crews since they work inside factories thus enabling them to work year-round, no matter the weather.

5) Less waste Off-site modular manufacturing can reduce waste and make it simpler to use lean manufacturing methods and environmental principles during construction.

Not only that, but prefab construction materials—all of them, from packaging to steel—are easier to recycle, since they haven’t been exposed to the elements.

CONSTRUCTION

Safety and “Green” Construction

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s energy efficiency, the desire to reduce “greenhouse gases,” and a growing concern about environmental sustainability increase, building design and construction have been undergoing significant changes from just a generation ago. An ever-larger number of owners are opting for “green” buildings -- some for “netzero” structures that generate more electricity than they use. Many of those owners target Leadership in Energy and Environmental Design (LEED) certification (US), which offers a way to verify that a building meets specific standards.

However, a recent study summarized in the Journal of Construction Engineering and Management suggests that increasing the desired energy efficiency of a building also increases the risks to construction workers. The study found that buildings that had earned at least 12 credits under the LEED program presented notably higher risks to workers.

Some of the primary factors contributing to those risks are the fact that LEED-focused projects often include new tasks that place workers at greater risk. For example, workers may find themselves installing solar panels and reflective roof membranes, each of which presents new hazards. Workers are performing many new tasks at elevated heights, from building vegetated roofs to working on more buildings with interior atriums.

The study found that workers on these “green” buildings faced a 24 percent increase in falls, largely resulting from slipping while installing solar panels. Interesting, there was also a significant increase in eyestrain and dehydration that was attributed to reflective materials used in roofing. Those who were installing new wastewater handling systems were increasingly exposed to harmful substances.

Awareness of the hazards led the European Union’s worker-safety arm to issue guides to green-building construction safety in mid-2013.

The guides noted that green buildings are gen-

erally more tightly sealed and heavily insulated, which can increase worker exposure to dust and volatile organic compounds during the construction process. It important to make sure that there is adequate ventilation to protect workers in these situations.

When polyurethane foam insulation materials are being mixed and installed, they may give off significant amounts of isocyanates, which can irritate the skin and respiratory tract. That’s particularly a hazard when polyurethane is being applied by spraying.

Another issue involves safety when an existing structure is being renovated to improve its environmental standards. Workers may encounter older types of insulation such as fiberglass and rock wool that may release fibers when cut or crushed. That makes personal protective equipment such as face masks, air filters, and gloves important.

Some of the materials and methods used in a green building’s construction may be unfamiliar to workers. Safety training should focus on any hazards that that the materials and installation process creates.

One more hazard related to green buildings involves equipment that’s designed to generate renewable energy and reduce the building’s dependence upon outside energy sources. Owners are eager to use these systems, because they can lead to a substantial drop in energy expenses. However, few owners have experience with the systems, many of which are relatively recent innovations, so they may unknowingly put workers at a heightened risk. For example, installing solar panels on a roof without considering wind resistance could create a highly dangerous situation.

Safety personnel and other supervisors need to be proactive when it comes to green technologies and materials. They cannot assume that workers on their sites will be familiar with the materials, the special installation techniques they require, and any additional hazards they present. Going through the process of a comprehensive hazard analysis may be time-consuming, but it can identify risks that may not be readily apparent, so workers will be properly protected from potential dangers.

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ICT

How big data is transforming the construction industry

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ig data analytics is being adopted at a rapid rate across every industry. It enables businesses to manage and analyze vast amounts of data at ultrafast speeds, and obtain valuable insights that can improve their decision-making processes.

One of the industries that are reaping the benefits of this technology is the construction industry. Construction companies are using big data to perform a wide range of tasks, from data management to pre-construction analysis.

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July - August 2015

ICT and other construction projects, and uses big data analytics to perform searches and queries on data sets to obtain insights that can lead to better and faster decision-making.

Solving Problems

Here is a look at how big data is transforming the construction industry…

How Construction Companies are Leveraging Big Data Analytics Handling Large Amounts of Data Many construction companies need to juggle many projects at the same time, and they have to collect, produce, organize and analyze a lot of data because of these projects.

Other than creating work reports and progress reports, they also have to manage technical information on various aspects of their projects. All the unstructured data that is collected and generated can burden their databases.

Big data solutions make

it possible for construction companies to process massive amounts of data at unprecedented speeds, enabling them to save substantial time and effort, and focus more on the job site instead of IT issues.

Depending on which big data tools they use, they can improve almost every data-related process, from database management to report creation.

According to an article entitled “How Big Data is Transforming the World of Finance”, big data can help businesses create reports on their operations more frequently, or in real time, so that they can make wellinformed decisions on a consistent basis.

Predicting Risk

In order to plan and execute projects effectively, construction companies need to be able to predict risks accurately through intelligent use of data.

By implementing big data analytics, they can gain valuable insights that enable them to improve cost certainty, identify and avoid potential problems, and find opportunities for efficiency improvements.

One example of a construction company that is using big data analytics to predict risk is Democrata.

Democrata conducts surveys to gain a better understanding of the impact of new roads, high rail links

According to an article entitled “How Big Data is Transforming the World of Finance”, big data can help businesses create reports on their operations more frequently, or in real time, so that they can make well-informed decisions on a consistent basis

July - August 2015

The ability to solve problems quickly can contribute significantly to the successful completion of construction projects.

Liberty Building Forensics Group is a company that investigates and solves construction and design problems, and it has provided consultation on over 500 projects worldwide, including a Walt Disney project.

According to the company, forensic issues usually occur in major construction projects, and they can cause big problems, such as failure to meet deadlines, if they are not properly assessed.

In order to fix forensic issues efficiently, construction companies have to be able to collect the right data in an organized way and make the data accessible to the right people at the right time. This can be achieved through the implementation of big data solutions.

Presently, big data analytics is relatively immature in terms of functionality and robustness.

As it continues to become more advanced, it will be more widely adopted in the construction industry.

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TANZANIA FEATURE

Tanzania’s cement producers call for level playing field EACPA Tanzania says its members support local industries by using local raw materials and urge the government to reciprocate and offer the necessary support

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ocal cement makers have said that they are now facing collapse due to the continued influx of cheap imported products in an already saturated market.

The Chairman of the Tanzania Chapter of East African Cement Producers Association (EACPA), Mr. Reinhardt Swart, said that their situation was being made worse because they were competing with cheap imports at a time when their margins are squeezed by overcapacity in the market. “I am not asking for protection. I’m not asking the government to ban imports. I am asking for the government to create a level playing field,” said Swart. He commented they were operating in a difficult environment with risks of job losses to adjust to the situation.

Swart welcomed the entry of new players in the cement market, saying they would stimulate development in the industry but cautioned that their preferential treatment such as tax breaks was not helpful to the country as it contribute to create unleveled playing field against the local industries. “If you allow new players for integrated cement plants and give tax breaks and you allow imports in an over capacity market, that is

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not fair. There is a risk that cement producers will suffer job losses,” said Swart.

Swart said that Tanzania’s cement producers support the government campaign to help local industries grow by using local coal, gypsum and other materials, but that the government was not reciprocating the gesture. “If you force us to use local coal, that increase in cost must be calculated in monetary terms and charged on imports as well. The same applies to royalties. If you force us to grow another industry at our cost, then you must either give us subsidies or charge the exact increased amount as additional duties on imports,” said Swart.

According to Swart, the Managing Director Tanga Cement Company Limited (TPCC), Tanzania cement producers struggle with high input costs due to unreliable power and poor transportation infrastructure. The association has also claimed before that its members are already penalized by the costs related to power rationing, adding that cement producers record numerous power rationing cases annually.

Also of late, increased pressure from the department of minerals where they have instituted measures that prohibit the practicing of fair trade when sourcing minerals required for the manufacturing of cement makes it hard to compete with imported cement.

Swart said Tanzania cement industry has the potential to grow and create thousands more jobs if it receives the necessary government support.

“The regional cement industry has the capacity and required quality to supply all on-going and new major infrastructure projects,’’ Swart said.

EACPA Tanzania is a chapter of the East Africa Association which includes Kenya, Uganda, Burundi, Rwanda, and Tanzania. It includes all the five major players in Tanzania; Mbeya Cement, Tanga Cement, Twiga Cement, ARM Cement, and Lake Cement.

“The industry sources most of its inputs in the local market and has created direct and indirect employment to thousands of Tanzanian people. There is still potential to grow this industry, but this can only happen if government puts in place legislation that protects investors from unfair competition,” he said.

In Kenya, the Chinese contractor building the Standard Gauge Railway from Mombasa to Kigali buys cement from local producers.

July - August 2015

UGANDA FEATURE

Uganda Society of Architects laments low numbers of architects in civil service The Uganda Society of Architects (USA) has urged the Ugandan government to employ more architects at different urban authorities so as to improve the design of structures in the country.

Robert Kiggundu, president of USA requested this during the 11th African Union of Architects Congress (AUA) at Speke Resort, Munyonyo. He further said that the despite the existence of laws that requires all urban authorities to have an architect as a salaried member of staff, it is only

Kampala Capital City Authority (KCCA) that is known to have only one architect.

“Every urban authority is supposed to have an architect to make proper design plans on how and where structures are supposed to be constructed.

However, only KCCA is known to have an architect, but one architect is not enough for a city as big as Kampala,” said Kiggundu.

It has been a point of concern because of the high number of unqualified people who keep on masquerading as architects and designing buildings or selling plans downloaded from the internet.

Further to that the public in some cases officers of both the central and local governments continue to treat architecture as a peripheral profession to the extent that architectural positions are being occupied by unqualified people or those from other professions.

“Buildings continue to collapse after construction, because of the increasing number of masqueraders and this usually leaves us with poorly designed buildings,” he said.

The conference which was organized under the theme “Our Architecture, Our Communities, Our Heritage,” by Uganda Society of Architects was attended by architects from all over Africa including; Uganda, the host country, Benin, Cameroon, Democratic Republic of Congo, Ghana, Kenya, Tanzania, Rwanda, South Sudan, Nigeria, Tunisia, South Africa, Angola, Algeria, Senegal, Congo Brazzaville, Burkina Faso, Mauritius and India.

This year’s congress sought to explore and emphasize the importance of African heritage in the design of the built environments in the face of increasing urbanizations and social pressures.

July - August 2015

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KENYA FEATURE

National Construction Authority urged to reduce levies for acquiring construction permits National Construction Authority (NCA) has been urged to reduce the levies of acquiring construction permits hence reducing the high costs of application.

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cting Lands, Housing and Urban Development Cabinet Secretary Dr. Fred Matiang’i advised the NCA to adopt the ‘one-stop window shop’ model of payment which will help in the acquiring process, he further said that majority of investors end up spending too much time and resources on a process that discourages them from investing.

“National Construction Authority should create a good investment environment by reducing the levies for acquiring construction permits,” said Mr. Matiang’i. “The

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July - August 2015

board should deliver a proposal on how to bring down the current percentages to stimulate economic growth.

A combined payment form can be formulated to reduce unnecessary bureaucracies and avoid rising costs.”

“The Kenyan Government is always committed to supporting the building and construction sector by providing an enabling environment that promotes investment and growth,: he said, adding the government is working on a programme that will ensure that approval fees in the

KENYA FEATURE

construction industry are reduced in order to hasten growth and more investments in the sector.

The CS was speaking in Nairobi during the inauguration of a 13 member board of NCA. National Construction Authority is mandated to institutionalize and regulate the construction sector through fundamental review and reforms. It was formed with the main aim of consolidating and creating a well regulated construction

industry that will promote sustainable socio-economic development.

Meanwhile, CS Matiang’i has criticized the Kenya Architecture Association and other construction watchdogs in the country for failing to punish members involved in unsafe construction.

According Matiang’i the country has been facing various tragic houses collapsing and so far no action has been taken by architecture bodies such as The Board of Registration of Architects and Quantity

surveyors and called upon the bodies to take actions.

He added that there have been a series of houses collapsing most recently in Makongeni, Roysambu and Huruma which injured many and others claimed life’s of innocent tenants.

Matiang’i said the primary Investigations have been blamed on poor workmanship, professional negligence and incompetence of architects, a result which puts a spotlight to architects associations for nor taking necessary action.

The CS called upon

July - August 2015

all stake holders in the construction industry to take responsibility to ensure that the industry records some growth.

He also added that various bodies involved in the construction industry should come up with strict measures that will see a good improvement and security in the industry.

Kenya Architecture Association takes interests and participates, as a public watchdog, in the setting up of building construction standards through local authority by-laws.

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PROJECTS

Road linking Nairobi to Juba to be constructed

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enya is set to invite international bids for the design and construction of a road linking its capital Nairobi to Juba in South Sudan in a bid to enhance cross-border trade and reduce transportation costs between the two countries, said Levina Wanyonyi, Manager-Procurement, Kenya National Highways Authority.

The bidding process will be conducted through international competitive bidding procedures and a contractor is expected to selected by April 2016 so that construction can start, she added.

“We are still negotiating with our development partners for funds and shall announce the bidding process as soon as the funds are available,” she said The project is about 601 km and is estimated to cost over $960 million, she added.

According to Wanyonyi,

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the road will link Eldoret in north-western Kenya to South Sudan’s capital of Juba and is divided in three sections which include Lesseru – Marich Pass, Marich Pass – Lodwar, and Lodwar – Nadapal (border South Sudan).

The World Bank will provide $500 million out of required funds for the project, said Wanyonyi, adding that they are also negotiating with the German Development Bank, European Investment Bank and the African Development Bank for the funding of the remaining portion of the funds, she explained.

“The construction is expected to be implemented over a period of five years,” she stated.

The rehabilitation work needed on this road includes an upgrade from gravel to bitumen standard widening, the replacement of road signs, road marking, as well as the addition of

rumble strips, road humps and drainage culverts and the project will also involve the laying of a 600-km fibreoptic cable.

According to the road feasibility study, the project will be supervised by Kenya National Road Authority with sub-delegated powers to the supervising consultant’s resident engineer who will be responsible for superintendence of works, quality control, measurements and payment approvals.

The expected results include reduced vehicle operating costs, reduced travel time, improved road safety, as well as improved access to South Sudan and Northern Kenya.

According to Mathew Bore, the general manager at Dittman Construction Company Ltd, one of the interested firms, they need to do consultations before they decide on such a big project that involves many stakeholders.

“We need to consult first, much as we are interested, because this is a big project,” he stated.

The firm was established and registered in May 2009 as an engineering firm specialized in construction services in roads and civil engineering, structural engineering, electrical works, mechanical works, municipal infrastructure and general engineering works and consultancy among others, he added.

South Sudan, Juba-Nadapal road.

Kenya and South Sudan

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signed an agreement to upgrade the 972 km Eldoret –Juba road to promote cross border trade with an aim to ease transportation of goods from both countries, according to Kenyan officials.

Due to the recent crisis outbreak in South Sudan, the tendering process was temporarily halted but both governments are committed to ensure that the road is urgently rehabilitated so as to promote and facilitate cross border trade of the two neighbors.

According to South Sudan, the road to be constructed is about 370 km and is expected to cost $865 million which will be funded by South Sudan, Japan government, World Bank and the government has already set aside $30 million for this project.

A feasibility study and detailed design has been completed and the new highway will be built to bitumen standards.

The project is divided into three phases which include the Juba –Torit, Torit-Kapoata and KapoataNadapal sections and each will be tendered differently.

International contractors will be single sourced and local contractors will be subcontracted.

The project is very important because it will promote cross-border trade and making it easy for landlocked South Sudan to transport goods through the port of Mombasa, according to officials.