Volume 5 Issue 021, March - April 2016 by East African Infrastructure and Engineering Review Journal

East Africa’s Informative Journal in Developing Infrastructure

Volume 5 Issue 021, March - April 2016

BEHIND AFRICA’S GROWTH

SGR Project on course Incentives for low Cost Housing Necessary Sterling Project Management Ltd Countering Counterfeits Preventing Accidents on Construction Sites March/April 2016| East Africa Infrastruture & Engineering Review TRANSPORT | ENERGY | HOUSING

COMMUNICATIONS

WATER

EDITORIAL

Adopt a concerted approach in the war against counterfeits

Editor Eric Obwogi

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

Media Manager Peter Acham

Design and Layout Simon G. Warui

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 theBuilding & 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. ÂŠAll rights reserved

ounterfeit products remain a major threat to economic growth in the entire East African region. A significant number of companies have reported revenue losses as a result of their brands, which cost millions in research, development and production being faked. No sector has been spared. In the construction industry, paints, roofing products, equipment spare parts, furniture brands and even cement have copied and reproduced, to the detriment of their manufacters. Sustained discoveries of fakes in the East African market indicate a hostile trading environment for investors in the industry and the menace poses many serious repercussions for the region. Government agencies backed by security forces have been active, time and again discovering counterfeits in outlets in urban areas, always trading under any one of the leading brand names in East Africaâ&#x20AC;&#x2122;s market. Arrests are often made, and fines and jail times meted out. However, market players and lobby organizations opine that the level of punishment under the Anti Counterfeit Act (in Kenya) for counterfeiting is still not adequately deterrent, and is frustrated by lengthy judicial processes. A common approach to combat counterfeits at regional level is also yet to be realized. Weak (or lack of) legislation, coupled with the attitude of consumers whose purchasing power is weak due to high poverty levels are some of the factors that erode any gains made in the struggle to rid the region of fakes. A significant percentage of consumers consider prices over quality of products. The inability of governments to prioritize initiatives against counterfeiting in their socio economic programs does not help either. In addition, governments in the EAC also have generally poor capacity for oversight. In a region where servicing national budgets heavily relies on revenue collected from taxes, trade in counterfeits significantly affects revenue levels. The experience has also been blamed for the loss of numerous jobs annually. Some firms have tried to counter the fakes adopting modern and more advanced production processes, using processes and quality that is difficult to match and making it easier to differentiate their products from counterfeits. There have calls for tighter regulation of the building industry to close out space for dishonest practices. All in all, stakeholders must work together to tighten the noose on counterfeiters, to raise the bar in the war against the menace. It must be remembered that trade in fakes is indeed very lucrative, and perpetrators will always metamorphose and fight back, looking for new loopholes where some have been sealed. Judicial processes must work with a speed that will enhance the effectiveness of any deterrent initiative. Tighter controls in entry and exit points as well as lasting solutions in the war against corruption will go a long way in fighting counterfeits. Manufacturers are perpetually fighting for their brands and they must be supported in all ways possible, to be able to support a robust construction industry. Editor

November/December 2015 | East Africa Infrastruture & Engineering Review

East Africa Infrastruture & Engineering Review | March/April 2016

March/April 2016| East Africa Infrastruture & Engineering Review

CONTENTS

KENYA

Highlights

Hybrid renewable energy project to produce 120MW

Rogue contractors in Kenya warned

Construction of Pullman Hotel in Nairobi underway

SGR construction project in Kenya finally taking shape

to deliver solar PV portfolio 12 Solarcentury for ICIPE in Kenya Group Limited: A Quality Statement 15 Inaya With Willowpark Apartments And Liza Heights

of US$ 14m water project 20 Construction gets underway

Behind Africa’s growth

Project Management Limited;26 Sterling The Market at their fingertips

Counterfeits in the African 42 Fighting Market

East Africa Infrastruture & Engineering Review | March/April 2016

Kenya and Japan sign agreement for construction of 140MW geothermal power plant

enya and Japan has signed a US$ 408m loan agreement deal for the construction of a 140 MW geothermal power plant in Kenya’s Olkaria Geothermal field. The two states represented by Kenya’s National Treasury Cabinet Secretary Henry Rotich confirmed the reports and said that the loan will help Kenya in reaching the proposed 720 MW of electricity by 2020. “The credit we have received will fund the construction of a power generation plant to help us tap on the vast geothermal steam

at Olkaria Geothermal field for generation of an additional 140 MW of electricity which will added to the national grid,” Rotich said after signing the agreement. The new plant which is known as Olkaria V will be constructed by Kenya Electricity Generating Company (KenGen) and work is expected to commence in July this year with new plant anticipated to arrive on the grid by the end of 2018. KenGen has done a similar project before with the 300 MW Lake Turkana Wind Power project that is expected to add 90 MW to the grid by the end of this year, and another 200 MW by the end of 2017. The company is aiming

to produce 844 MW for the grid under the plan, and says it had already added 374 MW. The Olkaria field which is in Kenya’s Rift Valley depends mostly on renewable energy such as geothermal and hydro power and it has a vision of increasing its power generating capacity to about 6,700 MW by 2017 from about 2,500 MW at present. It also intends to cut electricity bills in the country hence tackling problems regularly blamed for derailing Kenyan business. KenGen is the largest public company in Kenya producing about 72% of the electricity consumed in the country. It is listed on the Nairobi Securities Exchange.

Kenya constructs largest water project in semi arid area

enya is constructing the largest water project in semi arid area that will supply water and electricity to millions of residents, Water Cabinet Secretary Eugene Wamalwa has announced. Thwake Dam at the confluence of Thwake and Athi Rivers will supply water to over one million residents of Machakos, Makueni and Kitui counties as well as generate 20 megawatts of electricity to power Konza Tech City in Makueni County. largest water project in semi-arid area that is set to be

constructed in Kenya is a Vision 2030 flagship project and is jointly funded by the Kenyan government and the African

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Development Bank. The Kenyan government has already set aside Sh2.8 billion to compensate residents whose land would be acquired for the project. “The water project the largest in the country will provide water to irrigate 40,000 hectares of land in this region,” said Mr Wamalwa. Residents are expected to

KENYA be paid as soon as the Tanathi Water Services Board completes verification of plot ownership and sizes. Residents affected by the project, will be paid Sh180, 000 per acre.

KENYA Political leaders have hailed the project as the much needed impetus for economic growth the region needed. However, they want the government to prioritise the irrigation component over the

generation of electricity and commit to undertake other projects to ameliorate the residents from the ills that could come from the completed dam.

Kenya might go it alone in constructing proposed crude oil pipeline

ince Uganda and Tanzania backed out on the proposed crude oil pipeline construction at the Coast, Kenya is being faced by a burdensome job of constructing the pipeline alone. Uganda and Tanzania agreed to build a similar facility at Tanga port while South Sudan is thinking of an alternative route via Ethiopia to Djibouti instead of South Lokichar in northern Kenya through Isiolo to Lamu on the Indian Ocean. Kenya has so far discovered 600 million barrels of crude oil in South Lokichar while Uganda has found 6.5 billion barrels of oil. A joint pipeline was to be developed from Hoima in western Uganda through Lokichar to Kenya’s Coast to enable the two countries

commence in the export of oil. This initiative would have fed on the vast resource from the famous Jonglei state in South Sudan, industry analysts place it at double the combined off take from Kenya and Uganda hence increasing its viability. “The Lokichar-Lamu pipeline would still be viable with South Sudan on board or if more exploitable reservoirs were discovered in Northern Kenya,” said Patrick Obath, the managing consultant of Eduardo Associates, a sector analyst. The competitor projects have complained of fears of overinvestment in this industry of oil transport infrastructure given the limited nature of the discovery, despite hopes that continuing explorations will give in more. Tanzania’s President John

Magufuli and Uganda’s Yoweri Museveni’s made the announcement to build the southern route pipeline from Hoima in the Albertine basin through northern Tanzania to Tanga port of the agreement during the East African Community Heads of States Summit held in Arusha “We did not receive any communiqué from either Tanzania or Uganda. Kenya and Uganda have signed a memorandum of understanding (MoU) to construct the Northern Corridor route pipeline after doing away with the central crude oil pipeline from Hoima through Kampala to Mombasa port,” said senior government officials from Kenya’s Energy Ministry.

Kenya: Hybrid renewable energy project to produce 120MW

ybrid renewable energy power to support Kenyan water services. In Kenya, the Coast Water Services Board has engaged a Sh27 billion ($12.365m) deal with Zormar Group of Companies to build a hybrid renewable energy power plant to supply electricity to the Baricho water works. The deal, which is expected to provide 120MW of wind and solar generated electricity, comes in the wake of Baricho water plant being continually disconnected by Kenya Power due to unpaid electricity bills, reports the Daily Nation. Hybrid renewable capacity Zormar Group’s vice president Martin Okore said: “Energy costs at the Baricho [water] plant currently consume over 73% of

the total revenues generated by the plant, meaning that the plant cannot sustain itself and play its mandate of meeting the region’s water needs.” Coast Water Services Board’s

engineer David Kanui, revealed that although the water plant has a capacity of 90,000 cubic metres a day, the firm only manages to pump 35,000 cubic metres per day. Kanui added that the firm pays electricity bills in excess of Sh35 million ($16,030) each month.

Kenya, Chinese Firm Sign Agreemenmt for Naivasha-Malaba SGR extension

enya and the China Communications Construction Company (CCCC) have signed an agreement for the construction of the NaivashaMalaba Standard Gauge Railway line under the Kenya SGR Developments Project valued at Sh549 billion.

contracts between Kenya Railways and China Communications Construction Company. The four commercial contracts for the development of the

This comes after the Cabinet approved signing of the commercial

East Africa Infrastruture & Engineering Review | March/April 2016

Power transmission lines The wind and solar power plant is predicted to produce 120MW to run the water plant, and will also include erecting power lines for transmission as well as two high voltage substations. Okore said, “The plant will generate 120MW of low cost wind and solar power for the water treatment plant at LangoBaya, which will need 7MW. The rest will be injected into the national grid, with the first phase expected to generate 46.5MW.” According to Okore the first phase of the project, anticipated for completion within one year, will cost Sh10.5 billion ($100m). In addition, Okore said it will be partnering with Shelter Solutions Company, BCleantech Company and Siemens AG Erlangen from Germany in a public private partnership with the water board.

March/April 2016| East Africa Infrastruture & Engineering Review

four elements of the project include Naivasha- Kisumu, Kisumu-Malaba, Kisumu Port Development and Modernization and expansion of the Inland Container Depot at Embakasi in Nairobi. Kenya is constructing a Standard Gauge Railway between Mombasa and Malaba as part of the

KENYA

KENYA East African Community protocol for the development of an SGR connecting the port of Mombasa to Kampala, Kigali and Juba. The entire network is supposed to be in operation by December 2018 and member states are working towards meeting the timelines of the directive. So far the first phase of the project from Mombasa to Nairobi is 75 percent complete, to be finalised in June 2017 while the second phase of the project from Nairobi to Naivasha is set to begin in June 2016. Phase 2 (Nairobi-Malaba) has been divided into three subphases as follows: Phase 2A Nairobi-Naivasha Phase 2B Naivasha- Kisumu including the development of a new high capacity port at Kisumu and Phase 2C Kisumu-Malaba. The government has secured a loan from the Government of the Peoples Republic of China to support the development of Phase 2A. The total contract price for this section is US$ 1.5 billion (Sh150billion). The signing of these contracts valued at US$ 5.4 billion marks yet another significant milestone regarding the Kenya - China cooperation for the mutual benefit of the peoples of the two countries. During the bilateral talks held between President Uhuru Kenyatta and President of the Peoples Republic of China on the sidelines of the China Africa Forum (FOCAC) in Johannesburg South Africa in December 2015, the two presidents reinstated their commitment to deepen the cooperation between the two states for the mutual benefit of the citizens of the two countries.

Rogue contractors in Kenya warned

raudulent contractors in Kenya who flout rules, guidelines and regulations governing the construction industry in the country have been cautioned of dire consequences. The Secretary in the building inspectorate at the Ministry of Lands, Housing and Urban Development, Moses Nyakiongera says the government has rolled out a nationwide inspection of all the buildings as ordered by president Uhuru Kenyatta . “A technical team is going around the country to inspect all buildings under construction. Although this might take time I can assure you that we will catch up with those risking other people’s lives through failure to abide by construction regulations”, said Nyakiongera. Nyakiongera consequently called on contractors to be prudent and avoid wasting resources on shoddy work since buildings built without adherence to the law will be demolished since they pose danger to users. “Last year a total of 17 houses collapsed, this year we have not

had any such incident apart from a wall that collapsed in Nakuru and we do not want to hear of another collapsing”, insisted Nyakiongera. Nyakiongera was speaking to the press at the site of a six storey building which has developed serious cracks on the ground floor and the walls forcing officials from the National Construction Authority( NCA) to order occupants to evacuate the house yesterday. The Secretary said that they have launched an investigations into how the building was built and they will release a final report and there is a possibility of the owner being asked to bring it down. He added that they are soon going to release an emergency number to the members of the public where they can report any risky construction. “We cannot be everywhere, security starts with you and me and therefore we want the members of the public to assist us by sharing information”, he explained.

Construction of Pullman Hotel in Nairobi underway

ullman Hotel in Jakarta Indonesia, the hotel is being constructed in Kenya. A major luxurious hotel in Kenyan capital Nairobi is being constructed by Best Western Plus Creekside Hotel and managed by French group AccorHotels. The Pullman Hotel will is expected to be completed in 2017. AccorHotels’ operational Marketing Director for Middle East and Africa, Mr. Manoël Parrent confirmed the news and said that the hotel is already under construction to be completed early next year and that some adaptations and designs are being done by the owner to match with the ‘upscale’ market and the Pullman brand. “Some adaptations and design needed to be done by the owner to match with the ‘upscale’ market and the Pullman brand. We are first targeting the corporate and meetings, incentives, conferences, and exhibition. It is in line with the growing demand from international and African travelers

Coming soon: The Pullmen Hotel throughout the continent,” said Mr. Parrent. The 11-storey hotel currently under construction in Westlands, behind the Westgate Mall, will consist of 340 rooms, two restaurants, two bars, a gym, spa, swimming pool and a total of 14 boardrooms tailored for business meetings. AccorHotels is listed on the Paris bourse and is the latest global hotel chain to announce plans to establish presence in Kenya’s hospitality industry which has recently witnessed increased

activity. Other luxury hotel brands under the hotel name are; Sofitel, Pullman, MGallery, Grand Mercure, and The Sebel. Their mid-level offerings are Novotel, Suite Novotel, Mercure, and Adagio. AccorHotels’ economy brands are: ibis, ibis Styles, ibis budget, adagio access and hotelF1. The upcoming hotel in Nairobi adds to Pullman’s six existing units across Africa located in Morocco (Marrakech and El Jadida), Dakar, Abidjan, Kinshasa, and Douala.

Construction of 80MW wind farm in Kenya to continue as scheduled

enya Electricity Generating Company (KenGen) has confirmed that the construction of the 80MW wind farm in Kenya will go ahead as scheduled despite the challenges of land disputes that lead to the stalling of projects in Kenya. KenGen’s Chief Executive Officer, Mr. Albert Mugo confirmed the news and said that the US$ 147m wind power project will be completed in December 2019. East Africa Infrastruture & Engineering Review | March/April 2016

March/April 2016| East Africa Infrastruture & Engineering Review

KENYA

KENYA KenGen is avoiding instances that were experienced in a similar project of the US$144m wind power project that was planned to be developed by Kinangop Wind Park and financed by a joint venture between Macquarie Group and Old Mutual Investment Group was cancelled due to opposition from local landowners and farmers. “We want to be very involved with the community so that once the project starts it moves on swiftly with no derailment by the issues similar to Kinangop,” Mugo

pointed out. KenGen has increased its power generation capacity in recent years by commissioning new geothermal power plants. Kenya, which depends mostly on renewable energy such as geothermal and hydro power, plans to increase it power generating capacity to about 6,700 MW by 2017, from about 2,500 MW at present. KenGen anticipates that electricity sales for its fiscal year ending in June to rise to Ksh29.5bn, from Ksh25.6bn a

year earlier. Other wind power projects in Kenya are the 300MW Lake Turkana Wind Power site in the far north of the country, which is expected to go ahead without problems. KenGen already operates a 25.5 MW wind farm near Nairobi. Kenya Electricity Generating Company Limited (KenGen) is the leading electric-power generation company in Kenya, producing about 80 percent of electricity consumed in the country.

Liquid Telecom Kenya launches app mapping 350+ free Wi-Fi hotspots

iquid Telecom Kenya, which is investing $1m in 2016 in hundreds of free Wi-Fi hotspots in Kenya, has launched an app mapping the more than 350 free Wi-Fi hotspots it has installed so far across the country. The company now has free hotspots in Nairobi, Nakuru, Mombasa, Kisumu, Eldoret, Kajiado, and Nyeri, with more commissioned and due to open. The Liquid Telecom Wi-Fi Finder app helps people find the free Wi-Fi zones, which are helping to open affordable access to the Internet. “Our commitment to offering universal Internet access in Africa is key to the group’s business strategy. We have so far installed over 350 hotspots in Kenya, many of them in partnership with leading retailers, cafes, restaurants, bars, banks and shopping malls,” said Ben Roberts, Liquid Telecom Kenya CEO and Liquid Telecom Group Chief Technical Officer. The sites in the Wi-Fi Finder all

have some form of free, public access, running from a minimum of 15 minutes of free use to unlimited free use, such as the BilaWaya street Wi-Fi service in Nakuru. The app shows the location of the free Wi-Fi as well as the address and contact details for each hotspot. All of the Wi-Fi hotspots are free to consumers, but some of them are paid for by the shopping mall, bank, or the coffee shop offering the service as a way of enhancing customer experience. Liquid Telecom Kenya is aiming to achieve a fivefold expansion in public Wi-Fi over the next year, which will help to expand Internet access from the current 74.2 per cent of Kenyans who currently

have access, according to Communications Authority of Kenya figures. “As more and more people are getting online with mobile devices, but cannot afford either fixed line connections at home, or only very limited mobile data packages, free Wi-Fi is becoming more and more popular as an alternative,” said Roberts. The free Wi-Fi investment by Liquid Telecom Kenya comes as the provision of free Wi-Fi is taking off globally and across Africa.

East Africa Infrastruture & Engineering Review | March/April 2016

SGR construction project in Kenya finally taking shape

he Standard Gauge Railway SGR construction project in Kenya is finally taking shape. The construction project which is an intergovernmental masterpiece linking neighbouring countries of Kenya, Uganda, Southern Sudan and Rwanda is a reflection of the partner states’ strive to provide an efficient and cost effective railway network as well as a seamless transport alternative for both goods and personnel. China’s Exim Bank is providing 90 percent of funding towards construction of the 472 Kilometers long high speed railway linking Nairobi and the port city of Mombasa. It will be extended to neighboring countries during the next phase. 21 campsites have been put up along the route, each supervising the works on a particular section. Two factories have also been opened to supply the sleepers and T-Beams &#8211; for supporting bridges. Bridges will account for 30 km of the 609 km line, including a 2km bridge over Tsavo River. Several other bridges will be built in Tsavo to allow the elephants to pass under the line. Each of these will be 7 metres high and 50 metres long. The Sh 345 billion project is scheduled for completion in June

2017. It will carry freight trains at a speed of up to 80km/h and passenger trains at a maximum speed of 120km/h. The Standard Gauge Railway will no doubt boost the region’s

efforts to create a borderless region for purposes of trade and social integration. Each of the partner countries is expected to finance the part of the railway under her territory with China’s Exim Bank offering to fund 90% of the first phase while the Kenyan government paying the remaining 10% The first phase of the project covers a distance of 472km from Mombasa to Nairobi and a total track length of 609km at a total cost of Ksh327 billion inclusive of construction and cost

March/April 2016| East Africa Infrastruture & Engineering Review

of locomotives. This phase is already in advanced stage with the Kenyan government saying the project is way ahead of the 2018 set completion time. The China Road and Bridge Corporation (CRBC) was contracted to build this state-of-the-art railway system that will handle both cargo and passengers with stations at Mombasa, Voi and Nairobi. The shape, design and functionality of the SGR highly defy nature and topographical hurdles. With 98 bridges covering a total distance of 29km, the railway will be able to span valleys, cross roads and also cross over the existing metre railway. In addition, the railway has nine Wildlife Animal Crossing Corridors going above 7 metres high and covering over 56 metres in distance in the Tsavo East and Tsavo West National parks Upon completion of the first phase, Kenya’s arm of the multbillion mega project is expected to extend to Malaba as Phase two with a proposed branch to Naivasha. Uganda will pick up the project which is expected to go through Kampala, Kigali and finally to Bujumbura. With this project, trade will be boosted through free and cheaper movement of people and goods. East Africa will seek to affirm its position and status on the African continent as a major economic block and trade partner of choice with the rest of the world

KENYA

Crackdown on fuel malpractices pays off as 96% of outlets found clean

ata gathered by Kenya’s Energy Regulatory Commission (ERC) across the country between September 2015 and February 2016 indicates that over 96% of petroleub m outlets sampled were free from contaminated fuel or fuel meant for export. A total of 8,945 tests were carried out in 1,493 petroleum outlets with the purpose of singling out non-compliant traders. 96.2% of the 1,493 petroleum outlets tested were found to be complaint with only 56 stations recording noncompliance. The petroleum outlets that failed the tests were closed. Their operators were required to upgrade the adulterated petroleum where applicable and also to pay penalties and taxes to the Kenya Revenue Authority

(KRA) before they were allowed to resume business. At 96%, this high level of compliance demonstrates that stringent measures implemented by the Commission and other state agencies to protect consumers from deceitful practices are paying off. Petroleum adulteration is the mixing of diesel with kerosene or mixing super petrol with kerosene in order to exploit the lower taxes on kerosene. Dumping of export products involves diverting fuel meant for neighbouring countries and selling it locally because export products are not taxed in Kenya. Petroleum adulteration poses serious health, environmental, operational and economic hazards. Contaminated petrol and diesel causes engine malfunction resulting in exhaust fumes that are of great health

concern. Furthermore, petroleum adulteration and diversion of export fuel constitute theft of tax revenue; money that would have been used to fund such public services as education, health, security, infrastructure development, among others. In September 2015, ERC launched a retailer self-test kit. The self-testing mechanism has benefited petroleum retailers who now test fuel products upon delivery before accepting it into their storage tanks. Public vigilance is a key element in cracking down on fuel adulteration. ERC encourages anyone aware of illegal petroleum practices to inform the Commission on its hotline number (0708 444 000), which is operational during normal working hours.

Kenya’s Sarit Centre to invest US$ 40m in new building

arit Centre which is among Kenya’s oldest malls has revealed that it is planning to construct a US$ 40m building besides its existing mall so that it can serve the growing population in Westlands, Nairobi. The four storey development will constitute of a 250,000 square feet of retail space and a whole floor of it will be devoted to a new supermarket. The other

three floors will have extra retail space, food courts, an exhibition hall and entertainment facilities. The new construction will also accommodate a multi-storey car parking silo which will help create more parking space. “Westlands has become one of the prime spots for office and retail space expansion. With the burgeoning growth in the population of Westlands and the development of competing malls, this expansion is almost inevitable,” an environmental

East Africa Infrastruture & Engineering Review | March/April 2016

audit report says. However, some facilities will be demolished to pave way for the proposed development including the existing car park, one office building and a few residential apartments. Sarit Centre which is owned by Soma Properties has been a major landmark in Westlands since its establishment 33 years ago. This will be the second

major expansion bid since the first one was launched in 1997. The building currently houses 130 tenants who include retailers, service companies and offices. Kenya has been on the limelight over the last decade with numerous malls being constructed across Nairobi offering more competition to the older shopping establishments like Sarit Centre. These include malls like Westgate

which is less than 500 metres from Sarit, Garden City on Thika Road and the upcoming Two Rivers Mall in Ruaka. Other existing malls including the Village Market that is building new retail outlets, conference halls, a 187-room hotel and a 600 capacity car park among other facilities and more space will eventually be created to the global brands setting up locally.

KenolKobil to construct gas liquefied petroleum refilling plant in Kenya

il marketing firm KenolKobil, is set to construct a 200-tonne liquefied petroleum refilling plant in Kenya. The plant that will be constructed in Kisumu is expected to help the company cut on its transportation costs. KenolKobil Managing Director, Mr. David Ohana confirmed the news and said that the company is also focusing on profitable businesses. “We are focusing on businesses with high yields as we consolidate operations,” Mr Ohana pointed out. The LPG construction is among many other areas the firm is looking to cash in, others are lubricants, non-fuel activities, aviation, export and the retail business; this is according to Mr. Ohana. However, the firm is not very keen on the trading business such as the open tender system (OTS), the country’s central fuel supplies purchase system operated by the Ministry of Energy and Petroleum. Last year, the oil firm signed a deal with BP that granted it a tenyear distributorship license for the Castrol-branded lubricants.

According to reports, consumption of LPG is still low in Kenya with industry estimates showing that the country lags behind. The average consumption levels of cooking gas in the SubSaharan Africa region is at an average of 2kgs per capita. The low uptake is attributed to the high initial cost of acquiring the equipment as well as inadequate storage facilities for the product. “The LPG market is not growing as we thought. There are challenges on the storage infrastructure and we also feel that the LPG exchange pool is

March/April 2016| East Africa Infrastruture & Engineering Review

not working efficiently as it is encouraging illegal refilling,” said Mr. Ohana. The KenolKobil Group is Africa’s fastest growing indigenous oil marketing conglomerate with an expansive investment portfolio spanning the entire Eastern, Central and Southern parts of the African continent. The Group consists of subsidiaries in eight African countries outside Kenya (Head Office) including; Uganda, Tanzania, Rwanda, Zambia, Ethiopia, Burundi, Mozambique and Congo DR.

KENYA

Solarcentury to deliver solar PV portfolio for ICIPE in Kenya

RE-ENGINEERING THE FRAMING OF MULTI -STORY BUILDINGS WITH STEEL-DECKING SHEETS

olarcentury will undertake the installation of three solar PV plants, with a total capacity of 1154kWp at Kenyan insect research centre- International Centre of Insect Physiology and Ecology (icipe). Two solar roof systems combined with a carport system will be built at the icipe Duduville Campus in Nairobi. The third solar roof system will be built at the icipe Thomas Odhiambo Campus, in western Kenya, which will be combined with battery storage. Solarcentury will design the systems and will be the EPC contractor (engineer, procure, construct), also with responsibility for O&M for the next five years. The project will be delivered by Solarcentury’s East Africa office, comprising a team of eight based in Nairobi, with support from the head office team in the UK. Dr. Segenet Kelemu, icipe Director General said, “Through this project, icipe’s goal is to create a sustainable energy supply and to reduce diesel fuel dependency by constructing solar photovoltaic (PV) power plants at its Duduville Campus headquarters in Kasarani, Nairobi, and at the icipe Thomas Odhiambo Campus on the shores of Lake Victoria.” Funded by the Swiss Agency for Development and Cooperation (SDC), the scheme is part of the icipe Greening Project, which, in addition to renewable energy, also includes energy saving initiatives

and water conservation measures, with the overall aim of reducing the Centre’s carbon footprint and making its operations more environmentally friendly. Guy Lawrence, Director at Solarcentury in East Africa said, “In the last two years in Kenya, we have built one of the largest solar farms in East Africa for a tea farm, as well as a solar carport on the roof of a brand new Mall in Nairobi- Garden City Mall. Now we are bringing our world-class engineering expertise to develop three systems, including what we believe to be the largest battery storage system for solar in east Africa. The awarding of this contract means that Solarcentury will have built the three largest PV systems in Kenya.

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We are always keen to work with organisations who want to improve the sustainability of their operations, and we’re pleased to be able to help organisations save money too. icipe’s mission of safeguarding the environment aligns with our own mission to alleviate climate change.” Work on site will commence in July 2016 and the systems are expected to be generating solar electricity by October 2016.

Dr. Segnet Kelemu, Director General ICIPE

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KENYA

Construction Of Kenya-Tanzania Electricity Line To Begin May

he construction of the 510 kilometer KenyaTanzania electricity transmission line is expected to commence in May, this is according to Kenya Electricity Transmission Company Acting CEO Fernandes Barasa. “The funding for the project has already been secured and actual construction is expected to begin in May this year and completed after 24 months from the day of commencement,” Barasa explained during the launch of the Energy Journalism Excellence Awards (EJEA). Funding comes from the African Development Bank which contributed US$ 50m and will cater for the construction

of Kenya’s portion which is constituted of nearly 96 kilometers. However, the process of selecting the contractor for the Kenyan side will be completed in a few weeks to come. Once the interconnector is complete, Kenya and Tanzania will enjoy power trade and if either country has excess power it will be able to sell some to its neighbours. In 2013, Kenya launched an impactful program that is anticipated to add 5,000 Megawatts to the national grid in 40 months time while Tanzania has made some discoveries of natural gas which can be used for generating electricity.

The transmission line will link Kenya to the East Africa Power Pool via a 510 kilometre 400kV transmission line constructed from Suswa in Naivasha. It will further be connected to the EthiopiaKenya transmission system through the Isinya-Suswa 400kV line, which is part of the Eastern Africa Electricity Highway. It has a transfer capacity of 2,000MW which will create a major link for power transfer between the Eastern Africa Power Pool and countries in the north such as Egypt and Sudan. The project will also go a long way in ensuring that 70 per cent of Kenyan households are connected with electricity by 2017 ahead of the target universal access by 2020.

Fusion Capital set for Meru Housing project.

raceland Athi River a resounding success Fusion Capital recently completed the sale of its 80-unit middleincome housing project in Athi River and paid back the financiers of the construction loan. FC reported that investors doubled their investment in the venture, having injected Sh. 600 million into the Graceland Athi River housing project. Initiated in 2008, Graceland was a joint venture between Fusion and Hand in Hand Group, a firm specialising in construction and farming. “The three-bedroom houses,

each with a separate servant’s quarter were offered for sale at escalating prices through the construction period, with the last houses being sold for around Sh11 million each,” said Fusion in a statement. “The investment involved an equity-like structure, involving redemption linked to house sales. “The bond was for a seven-year period, but Fusion Capital has been able to exit two years early.” Fusion has 13 real estate projects in Kenya, Rwanda and Uganda, and has recently received approval to issue two Development Real Estate

Investment Trusts (D-Reit) — one commercial and the other residential — that will raise a maximum of Sh7.4 billion for commercial and residential property development. Part of the proceeds will go towards the Sh3.7 billion Meru Greenwood City development which will comprise a shopping mall, office block and apartments. The commercial D-Reit will retail at Sh17 a unit targeting a minimum of Sh1.15 billion and a maximum Sh2.3 billion, while the residential D-Reit will carry a nominal value of Sh23 targeting between Sh2.58 billion and Sh5.16 billion.

INAYA GROUP LIMITED: A QUALITY STATEMENT WITH WILLOWPARK APARTMENTS AND LIZA HEIGHTS

naya Group is now offering vertically integrated real estate development services to its Clients. This has been the natural evolution for this established construction project manager. What this means is that the design build services and solutions, construction project management, property and facility management services all come together under one umbrella, enhancing value and facilitating more effective management of the long-term interests of our Clients and Investors. Among the most significant completed projects by the Inaya Group team is the iconic KCB Group Fund building, on Upper Hill Nairobi, Kenya, where their detail involved Finance procurement; Feasibility study; Preparation of overall project brief and plan (programme); Coordination of meetings on both design consultants and the KCB Pension Fund Board (Client). The Inaya team also undertook Progress monitoring and reporting, Mitigation of risks and disputes as well as valuation of

payments and approvals. Other projects include the magnificent Willow Park, Serene Valley, Windsor Park and Namanisho Park in the residential developments sector. A sample duo of projects by Inaya Group Limited; The Willow Park housing development located near Banana town off Limuru Road, a 25 minutes drive from Nairobi’s Central Business District and only 10 minutes drive to the popular Village Market shopping centre; with proximity to the United Nations Headquarters as well as US and several embassies. Willow Park houses can be accessed through two different routes, through limuru road as well as Northern by pass.

Clasico Builders (K) Ltd.

Forest Road, Nairobi

Sold out: Graceland Housing Estate

P.O. Box 38637 - 00623, Nairobi, Kenya. Tel.+254-722-791314 E-mail: info@clasico.co.ke

East Africa Infrastruture & Engineering Review | March/April 2016

March/April 2016| East Africa Infrastruture & Engineering Review

Willow Park’s location in a rapidly growing suburb with well developed infrastructure makes it ideal. The development comprises of 144 apartments. Of these, 16 are 1 bed room units, 96 are 2 bed roomed and 32 are 3 bed room residential affairs. Amenities include jogging tracks, car wash, laundry mart, gazebo, a rooftop terrace and ample parking. A clubhouse and mall will be available on the next phase of development. Liza Heights Driving to Liza Heights from Westlands, Nairobi is 8 minutes of pleasure. The wooded

We are proud to be associated with Inaya Group Limited 17

KENYA environment, which is 200 meters from Naivasha Road, which characterizes the intended site for Liza Heights surely adds allure to the outstanding which, when complete, will comprise 60 apartment units – 30 two-bedroom units with guest wing and 30 three-bedroom apartments. acre despite the proximity to Westlands. However, this will definitely change with the expansion of Naivasha Road into a six-lane superhighway and early investors will likely be smiling all the way to the bank. There are two choices in apartment designs and both are very generous in terms of space and amenities that offer both comfort and relaxation. In both the three-bedroom and two bedroom units, the master bedroom is en-suite and the living spaces are designed to help create intimate quality time for the family. Stand-out features include master bedroom en-suite, surface parking with 80 bays for residents and 20 bays for visitors parking. Project features are perimeter wall with electric fencing, gym, green energy through solar as well as generator which can be sued for common areas; a water treatment plant and a garbage collection point. Intercom facilities and a guardhouse ensure orderly and secure movement and existence within the estate. Well manicured gardens provide serenity and pleasurable living. The name Inaya is a Swahili word which means Guardianship or Providence, and conveys The Inaya Group Limited’s disposition

ENERGY

African Union to support geothermal exploration in Kenya

of working cohesively alongside African real estate conglomerate all stakeholders in the projects providing innovative solutions in they handle. The firm distinguishes diverse projects, and going by the itself with flexible, cooperative quality of projects presented this methods necessary for growth far, the company is well on its way and success within the real estate to achieving that ambition. industry. It is a promise of peace of mind for clients from the onset. The Inaya Group has grown, becoming one of the most sought after firms by developers and investors in the real estate industry, because of the We are Proud formidable to be Associated With wealth of expertise and INAYA GROUP LTD experience in their Projects brought board by its intouch collective team of Morning side Office Park 3rd Fl, Ngong Road, Kilimani. professionals. P.O. Box 605, 00100 - Nairobi, Kenya, Inaya’s vision +254 (0)20 230 0284-7 +254 (0)729 381 360 is to ultimately info@norkun.com achieve the status of an

Get

East Africa Infrastruture & Engineering Review | March/April 2016

he African Union Commission (AUC) has said it will support geothermal exploration in Kenya currently being done by Akiira Geothermal Ltd. AU says it will offer US$ 2m to finance the

power plant for 25 years. Akiira commenced on exploratory drilling in August 2015 and it is yet to outset on drilling its third geothermal well thanks to the funds from the AU. In the same year, Akiira signed a

geothermal steam. According to a London based audit firm Ernst and Young (EY), Kenya is one of the leading countries in the world in investments in renewable energies like wind, solar, hydro, biomas

exploration of steam energy in Kenya. The AU signed a grant agreement with Akiira which is currently undertaking some drilling activities in Akiira Ranch south of Ol Karia geothermal fields in Naivasha, Kenya. With the funds, Akiira will now be able to embark on the exploration project and proceed to the second stage of exploratory drilling works with an aim of finding at least 77MW of steam energy sufficient to drive the

Power Purchase Agreement with Kenya Power and Lighting Co Ltd to supply base load power from a 70MW power plant that it will construct once exploratory drilling has been completed. This initiative is part of the AU’s pledge to support the objectives of Africa’s infrastructure investment and it is also part of Akiira’s Geothermal Risk Mitigation Facility that is intended to mitigate financial risks that early stage private sector developers bear when drilling in the search of

and geothermal energy. Akiira Geothermal Ltd is owned by a Danish company, Frontier Investment Management renewable energy Private Equity fund and Centum Investment a Nairobi Securities Exchange listed investment company. However, two other shareholders, Marine Power Generation of Kenya and RAM Energy of the United States are the developer companies for the projects.

March/April 2016| East Africa Infrastruture & Engineering Review

ETHIOPIA

TANZANIA

Qatar seeks to construct major tourist project in Ethiopia

iversified Qatari real estate firm Ezdan Holding Group has announced its interest to enter the Ethiopian market with a proposed mega tourist project in Ethiopia. The proposed 150,000m² resort construction project will features a high-quality technical specifications in terms of facilities and services which will contribute in raising the quality of real estate products available in the Ethiopian market. Speaking during a meeting with Ethiopian prime minister Hailemariam Desalegan in the capital Doha, Chairman of Ezdan Holding Group Sheikh Dr Khalid bin Thani bin Abdullah Al Thani said the Group will intensify its investment plans in Ethiopia in the coming days. He added that Ezdan, in cooperation with the municipality

of Addis Ababa, will identify an appropriate location for the proposed resort. On his part, Ethiopian Prime Minister hailed the strong relations between Qatar and Ethiopia at all levels. The meeting was attended by Ethiopian senior officials and Ethiopia’s Ambassador to Doha, Misganu Arga. The Qatari delegation included Qatar’s Ambassador to Ethiopia,Abdulaziz bin Sultan Al-Rumaihi, Ezdan Holding Group CEO, Ali Al Obaidli, SAK Holding Group CEO Hesham Al Sahtari, Ezdan Holding Group Board Member Ali Al Hashmi, Medicare Group CEO Khalid Al Emadi, Arab Engineering Bureau CEO Ibrahim Jaidah, Ezdan Holding Group’s Chairman Office General ManagervNusratAli Farooqi, and Ezdan Holding Group’s Director of Corporate Research & Analysis Mahmud

Awada. Growing at slightly over 10% economically, Ethiopia has emerged as one of the best investment destination for major global firms. The country has in recent times attracted funds from global financial institutions like the European Union and the World Bank to boost its roads in rural areas. Ethiopia is also constructing a major hydropower dam which upon completion will be the largest of its kind in Africa. Recently, Ethiopia announced that it was planning to construct a multi-million dollar stadium in the capital Addis Ababa. Last year, it launched the construction of a major expressway aimed at easing traffic in the capital. Ethiopia believes that these and other projects will position the country as a major investment hub in the horn of Africa.

Tanzania Roads Board sets aside US$ 157m for road construction projects Need a hand: TRB intend to construct roads to improve trasport

anzania’s Dar es Salaam Regional Road Board has decided to set aside US$ 157m for road construction and maintenance projects for the 2016/17 fiscal year. The Road Board in Tanzania especially aims to boost road construction in the country’s capital. Dar es Salaam Regional Commissioner, Mr Saidi Meck Sadiki confirmed the reports and said that they will in the next financial year start implementing the Dar es Salaam Metropolitan Development Programme (DMDP) which is intended to improve infrastructure so as to especially curb the traffic menace in the city. “We will commence on

East Africa Infrastruture & Engineering Review | March/April 2016

the implementation of the Metropolitan Development Programme in the next financial year which is aimed at improving infrastructure including roads, bridges, solid waste management, street lights etc so as to make the city a better place to be in and in order to curb traffic on the roads,” said Mr Sadiki. The project comprises of four components; the first component priority infrastructure will finance improvements and constructions of priority roads and primary and secondary drainage systems – including bank stabilization, detention ponds and connection to the secondary network etc. The second component is upgrading in low-income communities that range from roads and road-related infrastructure, environmental related works, including storm water drainage, sanitation, tertiary

March/April 2016| East Africa Infrastruture & Engineering Review

solid waste management, street lights and community related amenities, including parks, markets, and bus stands. The third component, institutional strengthening, capacity building, and urban analytics will support development of metropolitan governance arrangements and systems municipal finances and technical capacity through own source revenue collection and development and integration of geographic information systems (GIS), improving the integration of transport and land-use planning, operations and maintenance systems and urban analytics. The mission of Dar es Salaam Metropolitan Development Programme is to improve urban services and institutional capacity in the Dar es Salaam metropolitan area and to facilitate potential emergency response.

TANZANIA

UGANDA

Construction of US$ 14m water project gets underway

anzania is constructing a US$ 14m water project plant in Sumbawanga Municipality in Rukwa region. The water project in Tanzania is aimed at improving water sanitation services in the area. The Sumbawanga Urban Water Supply and Sanitation Authority (Suwasa) Planning Engineer, Mr. Maunda Mbenero, confirmed the reports during a meeting that was attended by Sumbawanga Urban Constituency Member of Parliament, Mr. Aeshi Hilary and municipal department heads. According to Eng Mbenero, the construction of the project officially took off on March 18, 2013 and it was initially expected to be completed on March 15, 2015 but it stalled. However, the construction works is 75 per cent complete. The development of the project has been divided into two sections that comprise of drilling of deep wells being undertaken by the Jandu Plumbers Company based in Arusha, construction of clean and safe water network infrastructure and finally the construction of two sanitation dams that is being carried out by Technofab Company from India. The construction of the mega water project is jointly funded by the European Union, the Tanzanian government and the German Development Bank KfW. Some of the funds will also be used on connecting pumps in 12 drilled deep wells, laying of water pipes in Sumbawanga Town covering 16 kilometres, improving water filtering plant located at Majengo Juu area where construction of 12 water

Drilling for Water kiosks and 38 water centres is ongoing and purchase of two garbage collector trucks. The government is anticipating the project to boost the production of water to 25 million cubic litres per day down from 7.5 million litres once completed. Technofab Company is an engineering and construction Company, serving the Power, Industrial and Infrastructure Sectors, by executing comprehensive balance of plant (BOP) and auxiliary systems on a complete Turnkey EPC basis.

Uganda constructs region’s largest solar PV plant

10MW solar PV plant to be constructed in Uganda’s eastern town of Soroti will be the largest solar PV plant in East Africa and is expected to provide clean electricity to 40,000 local households. The US$ 19m project was initiated by a consortium of European clean energy companies, solar EPCs and financing institutes who are working together to make plant operational by July this year. French clean Power Company, Eren RE and African development specialists Access Energy Group are also part of the project. The multi-million solar power plant which has already broken ground is the first to be developed under Uganda’s GET FiT facility, it is a project set up jointly by KfW and the Ugandan government’s Electricity Regulatory Agency (ERA). The European Union Infrastructure Trust Fund is also involved, while Spanish EPC firm TSK Group will oversee the construction of the plant and subcontract some of the work to local

East Africa Infrastruture & Engineering Review | March/April 2016

the process of developing 190 MW of solar PV in Egypt, others in Kenya, Ghana and central Asia. “Renewable energy such as solar has a unique opportunity to augment Africa’s infrastructure and shape a cleaner future by effectively plugging in 10 to 50 MW. The limited availability of the grid in Africa plays an important role for the deployment of renewable,” Access Energy Group’s MD Reda El Chaar said.

Countrywide construction of grain silos commences

Above; Effort are being made to solve the perennial water prombles

firms. In Sub-Saharan Africa, apart from it being the largest project it is also the leading privately funded solar development. It is being financed by several companies including; London’s Emerging Africa Infrastructure Fund, Dutch development bank FMO and Germany’s KfW Development Bank. In Africa, the multinational company, Dubai-based Access Energy Group has allotted many solar projects and is currently in

ganda has began constructing grain silos countrywide to help in the maintaining of good grain standards, the Grain Council of Uganda has announced. The project is supported by Trade Mark East Africa. The Executive Director of the grain council of Uganda, Wilfred Tembo confirmed the news and said that the silos will be able to cater for approximately 200,000 kg of grain and is intended to

serve close to 10, 000 farmers . He said this during the launch of one of the silos in Namunkekera, Nakaseke districts. “We are aiming at serving 10,000 small holder farmers. Currently we stand at 6000 farmers in three groups, Kalagala, Nakaseke and processors association,” said Tembo. This important

March/April 2016| East Africa Infrastruture & Engineering Review

initiative will be carried out by the Grain Council of Uganda in a joint venture with Grain Bulk handlers, a Kenya based company.

RWANDA

SPECIAL FEATURE Mr. Tembo further explained that a regional grain hub is a concentration of producers and processors of grain and other service providers within the value chain for the grain and in the near future, they plan to link such facilities to the National Network of Warehouse Receipt system Authority, so that when farmers deposit their grains,

they receive a receipt that can be presented to a financial institution as collateral to get credit. Among the 28 hubs that are yet to be constructed, Kapeeka regional grain hub is just one of them across the country that the grain council is developing. Of these, six will be constructed this year. By the end of the year, the council should have constructed silos in Lwengo-Rakai area, Kasese-Lubirizi, MasindiKiryandongo, Gulu and Nyoya. The grain hubs are anticipated to offer services like cleaning, drying and storage of grains among others.

China to support construction of US$ 27m modern 5-storey complex in Rwanda

he Rwandan Government through a good will agreement with China has decided to construct a US$ 27m modern 5-storey complex in Rwanda to serve as Administrative Office Complex for the Prime Minister, other ministries and government institutions. This news was confirmed by Zhang Dejiang, the Chairman of the standing committee of the National People’s Congress of China (NPC), who is in Rwanda for an official visit, cut the ribbon and commissioned the construction of the facility.

During the visit, Zhang Dejiang also met President Paul Kagame where they discussed on cooperation agendas on how China can support Rwanda to cut the widening trade deficit since China is Rwanda’s key investment and cooperation partner. The decision of the construction of the complex came as a sign of good will and cementing cooperation between the two countries. Rwanda’s Foreign Minister Louise Mushikiwabo was pleased with the visit by China’s 3rd high ranking official and his delegation and said that the visit will strengthen relations between

the two countries, including collaboration on global matters. “We are pleased with this visit by the Chinese Government and we are sure that this initiative will strengthen relations between us, including collaboration on global matters,” Mushikiwabo said. Rwanda and China have enjoyed good bilateral ties since 1971. Chinese investments in Rwanda have reached US$ 200m in the last five years covering different sectors of the country including ICT, construction, manufacturing, hotels and restaurants, finance among others but Rwanda remains the largest source of commodities imports. However, Chinese companies run mega construction and irrigation projects in different parts of the country. The two day visit by the Chinese delegation was also part of a follow up on commitments made by China’s president Xi Jinping, including a US$ 60bn fund, during the China-Africa Summit in Johannesburg last year in December.

East Africa Infrastruture & Engineering Review | March/April 2016

What is driving Africa’s growth? A

cha Leke a principal in McKinsey’s Lagos office The rate of return on foreign investment is higher in Africa than in any other developing region. Global executives and investors must pay heed. Africa’s growth has quickened, infusing the continent with a new commercial vibrancy. Real GDP rose by 4.9 percent a year from 2000 through 2008, more than twice its pace in the 1980s and ’90s. Telecommunications, banking, and retailing are flourishing. Construction is booming. Private-investment inflows are surging.

Construction and Infrastructure project indicative of Africa Impressive growth March/April 2016| East Africa Infrastruture & Engineering Review

To be sure, many of Africa’s 50-plus individual economies face serious challenges, including poverty, disease, and high infant mortality. Yet Africa’s collective GDP, at $1.6 trillion in 2008, is now roughly equal to Brazil’s or Russia’s, and the continent is among the world’s most rapidly growing economic regions. This acceleration is a sign of hard-earned progress and promise. While Africa’s increased economic momentum is widely recognized, its sources and likely staying power are less understood. Soaring prices for oil, minerals, and other commodities have helped lift GDP since 2000. Research from the McKinsey Global Institute (MGI) shows that resources accounted for only about a third of the newfound growth.1 The rest resulted from internal structural

SPECIAL FEATURE changes that have spurred the broader domestic economy. Wars, natural disasters, or poor government policies could halt or even reverse these gains in any individual country. But in the long term, internal and external trends indicate that Africa’s economic prospects are strong. Each African country will follow its own growth path. We have developed a framework for understanding how the opportunities and challenges differ by classifying countries according to levels of economic diversification and exports per capita. This approach can help guide executives as they devise business strategies and may also provide new insights for policy makers. More than a resource boom To be sure, Africa has benefited from the surge in commodity prices over the past decade. Oil rose from less than $20 a barrel in 1999 to more than $145 in 2008. Prices for minerals, grain, and other raw materials also soared on rising global demand. Yet the commodity boom explains only part of Africa’s broader growth story. Natural resources, and the related government spending they financed, generated just 32 percent of Africa’s GDP growth from 2000 through 2008.2 The remaining two-thirds came from other sectors, including wholesale and retail, transportation, telecommunications, and manufacturing (Exhibit 1). Economic growth accelerated across the continent, in 27 of its 30 largest economies. Indeed, countries with and without significant resource exports had similar GDP growth rates. Promising long-term growth

SPECIAL FEATURE prospects A critical question is whether Africa’s surge represents a onetime event or an economic take-off. The continent’s growth also picked up during the oil boom of the 1970s but slowed sharply when oil and other commodity prices collapsed during the subsequent two decades. Today, individual African economies could suffer many disappointments and setbacks. While short-term risks remain, our analysis suggests that Africa has strong long-term growth prospects, propelled both by external trends in the global economy and internal changes in the continent’s societies and economies. Global economic ties Although Africa is more than a story about resources, it will continue to profit from rising global demand for oil, natural gas, minerals, food, arable land, and the like. MGI research finds that over the next decade, the world’s liquid-fuel consumption will increase by 25 percent— twice the pace of the 1990s. Projections of demand for many hard

minerals show similar growth. Meanwhile, Africa boasts an abundance of riches: 10 percent of the world’s reserves of oil, 40 percent of its gold, and 80 to 90 percent of the chromium and the platinum metal group. Those are just the known reserves; no doubt more lies undiscovered. Demand for commodities is growing fastest in the world’s emerging economies, particularly in Asia and the Middle East. Despite longstanding commercial ties with Europe, Africa now conducts half its trade with developing economic regions (“South–South” exchanges). From 1990 through 2008, Asia’s share of African trade doubled, to 28 percent, while Western Europe’s portion shrank, to 28 percent,

East Africa Infrastruture & Engineering Review | March/April 2016

from 51 percent. This geographic shift has given rise to new forms of economic relationships, in which governments strike multiple longterm deals at once. China, for example, has bid for access to ten million tons of copper and two million tons of cobalt in the Democratic Republic of the Congo in exchange for a $6 billion package of infrastructure investments,3 including mine improvements, roads, rail, hospitals, and schools. India, Brazil, and Middle East economies are also forging new broad-based investment partnerships in Africa. The global race for commodities also gives African governments more bargaining power, so they are negotiating better deals that capture more value from their resources. Buyers are now willing to make upfront payments (in addition to resource extraction royalties) and to share management skills and technology. At the same time, Africa is gaining increased access to international capital. The annual flow of foreign direct investment into Africa increased from $9 billion in 2000 to $62 billion in 2008—relative to GDP, almost as large as the flow into China. While Africa’s resource sectors have drawn the most new foreign capital, it has also flowed into tourism, textiles, construction, banking, and telecommunications, as well as a broad range of countries. The rise of the African urban consumer Africa’s long-term growth will increasingly reflect interrelated

social and demographic changes creating new domestic engines of growth. Key among these will be urbanization, an expanding labor force, and the rise of the middleclass African consumer. In 1980, just 28 percent of Africans lived in cities. Today, 40 percent of the continent’s one billion people do—a proportion roughly comparable to China’s and larger than India’s (Exhibit 2). By 2030, that share is projected to rise to 50 percent, and Africa’s top 18 cities will have a combined spending power of $1.3 trillion. Africa’s diverse growth paths While Africa’s collective longterm prospects are strong, the growth trajectories of its individual countries will differ. Economists have traditionally grouped them

by region, language, or income level. We take another approach, classifying 26 of the continent’s largest countries5 according to their levels of economic diversification and exports per capita. This approach highlights progress toward two related objectives: • Diversifying the economy. In the shift from agrarian to urban economies, multiple sectors contribute to growth. The share of GDP contributed by agriculture and natural resources shrinks with the

March/April 2016| East Africa Infrastruture & Engineering Review

expansion of the manufacturing and service sectors, which create jobs and lift incomes, raising domestic demand. On average, each 15 percent increase in manufacturing and services as a portion of GDP is associated with a doubling of income per capita. • Boosting exports to finance investment. Emerging markets require large investments to build a modern economy’s infrastructure. Exports are the primary means to earn the hard currency for imported capital goods, which in Africa amount to roughly half of all investment. This is not to say that African countries must follow an Asian model of export-led growth and trade surpluses, but they do need exports to finance the investments required to diversify. History shows that as countries develop, they move closer to achieving both of these objectives. Most African countries today fall into one of four broad clusters: diversified economies, oil exporters, transition economies, or pretransition economies (Exhibit •Although the countries within each segment differ in many ways, their economic structures share broad similarities. Our framework is useful for understanding how growth opportunities and challenges vary across a heterogeneous continent. Although imperfect, this framework can guide business leaders and investors as they develop strategies for Africa and can provide new perspectives for its policy makers.

SPECIAL PROFILE

SPECIAL PROFILE 4 years after graduating from the University of Cape Town.

STERLING PROJECT MANAGEMENT LIMITED

During the 4 years he worked in Kenya, and was involved in bank fit-out and real estate projects, most notably Ziana Springs on Riara Road Nairobi, where he was project manager. The valuable experience earned working in Bahrain were enough to convince Mwaura to throw his hat in the competitive ring, forming Sterling Project Management Limited in April 2009 It has taken hard work, unwavering focus on the big picture to make Sterling Project Management Limited a point of reference as a leading consultant in the construction industry. Mwaura says that the Sterling Project Management maintains a finger on the pulse of the real estate development sector, so as to place his team in a strong position to advise and serve the client in a most satisfactory manner.

Young consultancy bets big on expertise and thorough market knowledge 28

few years ago, Andrew Mwaura, Managing Director at Sterling Project Management Limited was experiencing a new world in construction, an inspiring culture shock of sorts. He had the fortune to work in an environment where what is regarded a major development project in East Africa wouldn’t make a contractor lose a night’s sleep. That is in the Middle East – Bahrain to be exact, where he had an early working stint after graduating from university in South Africa. In Bahrain, indeed as in most Gulf States, a US$ 10 million project would is commonplace

“Our edge lies in the fact that we have a firm grasp of local market conditions in the real estate industry,” says the youthful CEO. “This equips us with the ability to walk the client

The Sterling Project Management team through the process - right from assessing viability of the project to implementation.” In an industry that has witnessed enhanced appetite for investment in the real estate sector, it is important to engage professionals for a guided and informed approach prior to implementation, because burning your fingers is easy. Mwaura notes that many developers have regretted not allowing the natural process to take place, opting instead to go straight to the designers and contractors, and sinking funds into projects without carrying out feasibility studies to define viability and gauge the expected return on investment based on location, right capital outlay and choice of project. Capital financiers look

at most of these issues and if not packaged well, the moneymen will be inclined to shy away. Other issues like conveyance – having a lawyer on board is an imperative - while tax considerations and their implications on the final cost should be considered. With a firm belief in starting on the right path, SPM provides project development advice in the key stages of construction projects from the onset. Sterling works with lenders and investors to analyze risk and review opportunities for new construction and project work. The team at Sterling is well versed with identification of risks at various levels prior to clients’ commitments to investments. “We work with our clients to

Andrew Mwaura, Managing Director at Sterling Project Management Limited

stuff. In Kenya, this size of project could make or kill a contractor’s dream. These are some of the kind of projects that are dotting defining the construction landscape in East Africa. Mwaura left for the Middle East

East Africa Infrastruture & Engineering Review | March/April 2016

P.O Box 52705 - 00200 Specialists in: General Plumbing, Drain Laying, Nairobi - kenya Fire Protection, Steam Systems, Fitting, Refrigeration Email: info@waterwise-services.com & General Renovators. Website: www.waterwiseservicesltd.co.ke

WATER DISTRIBUTION

FIRE FIGHTING INTALLATIONS

We are proud to be Associated with Sterling Project Management Ltd

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URINALS.

Telephone:+254(020) 2605460 Mobile: 0721 219 483 0737 103 489

HOSE REEL

SPECIAL PROFILE make the construction process stress-free by confirming that construction documents are as clear as possible and ensuring consistency between the drawings, specifications and legal guidelines,” says Mwaura. “We offer services in formulating a funding structure, package the project for presentation to financiers and assist clients make investment decisions, based on where clients will get maximum returns on their investment.” The firm’s cost management service provides independent, impartial, specialist advice on the full scope of construction costs throughout the life cycle of projects. Here is a detail of the services provided by SPM: • Preparation of the development brief – including strategic project advice delivery and project analysis, broadspectrum risk assessment and strategy. • Advice on the various procurement routes. • Attendance at meetings with all service providers. • Development of appropriate financing structure • Project management of project financing negotiation and delivery. • Engineering, procurement and process management including assessment of third party developers including arranging interviews and criteria for selection and advice on the appointment of consultants and specialist advisors where required. • Advice on the site selection, site layout, design and sustainability issues. • Liaison with government authorities. • Project execution (construction) management support. • Post project review.

SPECIAL PROFILE research on tobacco processing and knowledge of how a tobacco plant works was also necessary, to be able to understand what was at stake. This was new territory for SPM but, daunting as it seemed, the project was delivered with time to spare. There was initial skepticism about the viability of the Ridge Park Project in Kisumu, comprising 23 villas, this was another another landmark project in the history of SPM. Some were of the opinion that it simply should not have been conceived in the first place as there would be no takers. On completion, it turned out to be the first housing project in Kisumu to sell units for over KSh. 10 million. 10 units were snapped up at the launch.

Impressive: The treadsetting Hill Park Villas in Kisumu was a commercial hit despite pessimism from market observers • Post project feedback of the performance of the building contractors and third party developers. SPM engages with design teams and procures projects to achieve best possible value from construction costs. Its team’s in depth knowledge of cost accounting and financial tracking coupled with expertise in the construction process within the East African market enables it provide reliable projections and audits. SPM has established a reputation as a premier provider of cost-effective, quality, construction management services for residential to complex commercial projects, both locally and in the region. Some of the undertakings include infrastructure projects like airports, commercial buildings, and major residential

SPM continues to grow, investing in continuous training, and currently retains a team of polished construction management professionals with extensive experience in the construction industry including engineering, project management, scheduling and environmental compliance. Mwaura discloses that continuous learning is a culture ingrained in the company’s DNA, as there is always room for improvement, to be able to acquire an edge in the industry. The guiding principles of Good Management, Leadership, Integrity, and Efficiency are intended to enhance SPM’s credentials as a market leading construction and project

management firm in Sub-Saharan Africa. It is indeed a proud stage in the history of the company and ultimate indicator of growth of the company to be a point of reference in the industry, and maintain a growth curve that puts it on course to achieve its original objectives of becoming a regional market leader in the construction consultancy business. The laptop on which he started Sterling Project Management Ltd in his brother’s sitting room may have been stolen, but he has never lost the vision of where he wants to be, playing a major role in a rapidly growing regional construction industry.

jobs, of which, their latest involvement, the Enkishon Mbazi in the Lavington suburb, Nairobi stands out for its unique trendsetting design, a detail oriented trend-setter. SPM’s track record has been achieved by tackling challenges head-on, aware that it is the only way to make lasting impressions and highlight a formidable capability statement. In perhaps a milestone undertaking for Mwaura and his team, SPM undertook the setting up of a Tobaco Factory in Arua, in the north of Uganda. Tobacco is a seasonal, perishable crop. This had a delicate time implication on the project implementation process, in line with planting, harvesting and delivery, which necessitated that the plant had to be ready in tandem with the harvest period. Background

East Africa Infrastruture & Engineering Review | March/April 2016

We are proud to be associated with Sterling Project Management as Quantity Surveyors for the Enkishon Luxe Apartments.

Consulting Engineers in; Buildings and Structures Civil and Infrastructure Development Construction supervision Condition surveys, structural audits and Testing

We are proud to be The Civil & Structural Engineers for the Prestigious Enkishon Project and to be associated with Sterling Project Management Management

March/April 2016| East Africa Infrastruture & Engineering Review

SPECIAL FEATURE

Harnessing the power of solar for development in Africa

ouis Shaffer, Distributed Energy Segment Manager, EMEA Eaton Did you know that two out of three people in Africa live without electricity? Solar may be the answer to quickly changing that picture. This is because over the last decade, the cost of installed solar energy generation has decreased dramatically, but also because photovoltaic solar or PV can be installed anywhere the sun can reach. PV is thus extremely apt for distributed applications such as roofs, street lamps, and mobile applications. Solar power requires only a few simple components, and can quickly be up and providing much needed electricity at the point where it is needed. This is why PV solar, much like mobile telephone penetration before it, is quickly becoming a viable solution for Africans of all kinds. When it comes to the development of the lives of the excluded, renewable energy growth in Africa is growing in

leaps and bounds, and allowing people who previously had limited access to reliable, affordable, safe energy to change their lives. Renewable energy has become a buzzword in regards to power generation in Africa, but it will not quickly overcome fossil fuels as the main source of power. That said, it is important that the future includes increasing solar power and other renewables as Africa sustainably and gradually shifts towards efficient and affordable power for all of its people. As African economies grow, we already see a corresponding rise in energy demand across the continent, often beyond what the current power sources can supply. The effects of this reality have already been felt in the two biggest economies, Nigeria and South Africa; which are forced to consume large amounts of diesel as backup when there are power shortages on the grid – or to go without power altogether in such cases. Adding new electricity production by non-renewable means is costly for governments in Africa, and there are immense

challenges in any case to transport power across such a huge geographical area. At the same time, Africa boasts excellent irradiance (available sun energy) as well as abundant land on which to set up solar energy infrastructure. As costs come down, more and more African people, businesses, and governments are coming around to realise that solar changes the paradigm of how to get reliable and cost effective power that in turn will only speed the progress already taking place. Further investment from the private sector coupled by government funding and supportive legislation is key to enabling this push forward into solar, and ensuring a fully powered Africa in the near future. Growth prediction In their “Brighter Africa” report, McKinsey & Company forecast some major megatrends for subSaharan Africa. By 2040, the population will double for 2010, and the GDP will see a five-fold increase. This in turn will require that power consumption that is four times greater in just 30 years

East Africa Infrastruture & Engineering Review | March/April 2016

than the estimated 400 TWh currently being consumed. African governments have not been sitting still or ignoring renewable energy. The South African government has led the way with the highly innovative REIPP Procurement program. This program in just 3 rounds of bidding has allowed a tremendous growth in renewable energy, all the while cutting the costs by a factor of over 3. The independent agency Council for Scientific and Industrial Research had already reported a conservative estimate by early 2015 that this program had actual saved the country almost $1-billion. Governments in many of the other countries have also been implementing their first major renewable projects. Examples of this are wind farms in Ethiopia and Kenya, and major solar announcements in first projects in Nigeria and many other countries. As an example of Africa’s leading innovation, the Kenyan government recently announced an investment partnership with the private sector in a bid to generate over 50% of its electricity from solar. Not to be outdone, Rwanda also announced the opening of East Africa’s largest solar power plant. South Africa’s Transport Minister, Dipuo Peters, also announced the launch of Africa’s first solar powered airport in George in February 2016 which consists of a 200 square metre clean energy source designed to supply the airport with 750kw of its total electricity needs. Commercial and private individuals are also now investing in solar as a way to offset or eliminate diesel backup costs in applications ranging from mining to small commercial enterprises. Perhaps most encouraging are the growing “micro solar”

penetration in countries like Kenya, where for less cost than kerosene, hundreds of thousands of small homes are able to have lights, power for computers and phone charging, and radio / TV’s. Such systems often are paid off in less than a year, after which the user has more disposable income to invest in more solar. Furthermore, this alleviates the safety and logistic problems associated with kerosene for lighting. This is an example of how the demand for electricity is outpacing supply across Africa, because as mentioned above, serious challenges exist to build

the Kenyan government recently announced an investment partnership with the private sector in a bid to generate over 50% of its electricity from solar. new power stations, but even more to build a transmission network to rural areas. Not without challenges Solar power is not without challenges, especially as it disrupts what till now has been a very simple, if not very efficient model of power produced then transmitted over long distances, then distributed to individuals and businesses. Solar changes this flow to multi-directional, and also can impact current business models for power producers. Also, grid operators must manage

March/April 2016| East Africa Infrastruture & Engineering Review

the supply which now fluctuates. While demand has also always fluctuated, the speed to have solar in place presents challenges to grid operators that are not negligible. Fortunately, solar power is quite predictable and controllable. With proper rate schemes and regulations, it is possible to grow rapidly the amount of power available, while maintaining a steady grid. Germany, the leader in installed renewable power, only experiences a few minutes of power outages a year! Furthermore, energy storage prices are now also dropping rapidly, and many users are already combining solar plus storage to ensure that most if now all locally produced solar is also consumed at source. It is clear that Africa is going to see a rapid growth in the deployment of solar power. This form of energy is a viable option that can be deployed in the most remote of regions, where most of the population lives. Solar power has been shown to produce strong job growth wherever it has been deployed, and this is something that will also benefit African entrepreneurs. Solar is not without challenges, and it will take time to go through the learning curve, to train people technically, and to understand how a distributed energy source can co-exist with the current central power production model. Still, the benefit of focusing on solar power from both a private and public standpoint far outweighs any potential negatives. As renewable energy continues to fill an unmet demand here on the continent, solar is uniquely poised to play a key role in enabling the growth and prosperity Africa so richly deserves. * By Louis Shaffer, Distributed Energy Segment Manager, EMEA Eaton.

CONSTRUCTION

How to Waterproof a

Concrete Block Foundation The location of a building notwithstanding, it is important that its foundation remains waterproof to maintain structural integrity

oncrete has been used in construction since ancient times. It is made from a mixture of cement, aggregate and water. Poured concrete is formed (casted) onsite. Concrete block is concrete formed and hardened offsite in a manufacturing plant. Sand and gravel aggregate

is the raw material needed to manufacture concrete block. Many people use the terms “concrete block” and “cinder block” interchangeably. It should be noted that there are distinct differences. Cinder block tends to be lighter because it uses remnants (ashes) from burned coal as the aggregate instead of

heavier sand or gravel. In the early 1900’s, mass production methods led to a proliferation of homes being built using concrete block. They became popular because they were easier to store and transport when compared to stone and brick. They were also advertised to be “fireproof and weather proof”. Blocks are used in both above

and below grade foundation construction and come in different forms. “split faced block” is used in above grade construction. Concrete blocks used to build foundations usually come in 16 inch x 8 inch x 8 inch units and weigh about 20 kilos each. They are stacked by a mason and held together using mortar. Problems with Concrete Block Foundations Over time, soil and water pressure exerted against the foundation causes the mortar to break down and wear away. Consequently, water seeps through the exterior mortar joints and into the hollows of the block. The water trapped inside the block eventually leads to foundation seepage. It should be noted that concrete block is porous by nature. It easily absorbs moisture, which can contribute to mold problems. In some instances, the soil and water pressure is so great that it causes the wall to bow inward. With water coming into hollow blocks and into the basement, the water can either be stopped on the outside (Exterior Waterproofing) or captured on the inside (Interior Waterproofing). Concrete Block Waterproofing

East Africa Infrastruture & Engineering Review | March/April 2016

Solutions Exterior Waterproofing: Approaching the problem from the exterior (the “positive side”) seems to make the most sense to many people, which is ok when applicable and necessary. One big draw back – COST! It takes a considerable amount of labor (money) to dig down to the base (footing) of the foundation wall. Once excavated, a waterproof membrane is applied to waterproof the foundation walls. A drain tile is added to collect and dispose of the excess water. If there are obstructions, such as a driveway, porch, or garage in the way, they would need to removed and replaced. This also compounds the cost of the job. Interior Waterproofing: There is another school of thought when it comes to waterproofing concrete block foundations. Rather than stopping the water from the “positive side”, the water can be directed into a drainage system below the floor on the inside. The process is known as Interior Drain Tile. As a part of the installation process, holes are drilled into the bottom row of blocks. These weep holes allow for water to drain out from the hollows and into the drain tile system beneath the floor. Interior Drain Tile Systems can be installed in both unfinished and finished basements, although the latter

requires some prep work. What to Look For in a Basement Waterproofing Company: 1. The Solution There are multiple ways to solve a basement seepage problem. Look for a full service basement waterproofing company offering a wide range of services. Stay away from those who only offer a onesize-fits-all solution. If all they can offer you is Interior Drain Tile, run. It certainly has its applications, but you don’t need to buy a new car if you only have a flat tire.

3. Online Reviews Anyone can get an ad in the Yellow Pages (especially these days!). Or a savvier company might even have a website. Don’t assume just because they have slick marketing that they make good water proofers. 4. Industry Recognition Try contacting those “in the know,” such as builders, realtors and home inspectors. Good work travels fast; bad work travels even faster.

2. Years in Business Most basement waterproofing solutions come with a warranty. If they haven’t been in the industry for at least 10 to 15 years, they

5. Company Infrastructure It’s pretty easy to get into the basement waterproofing business. Some store bought materials and a rented truck - check. Sounds easy. There’s so much more that goes into being a successful

haven’t had the experience of surviving our erratic weather patterns and economical cycles. Many companies have only been in business for a few years. What good is a “lifetime warranty” if they’ve only been in business for 3 years?

basement waterproofing company -computers, phone systems, inventory, vehicle fleet, office staff to name a few. You’d be shocked at the facilities some contractors work out of. Before hiring anyone, you might want to make sure they’re not working out of the back of their truck.

March/April 2016| East Africa Infrastruture & Engineering Review

NEW PRODUCTS

CONTRACTOR

Precast concrete

magnets

Stellar Builders turns 8 with a reputation of proficiency

Compared to the old site-cast model, the new precast has many advantages.

ith the developing of construction industry, the precast concrete has been formed into a new green commercial mold to sitecast concrete. Itâ&#x20AC;&#x2122;s already being applied in a wide range of walls, floors and even roofs from private house to a giant building with much more durability, flexibility and of course economically. Compared to the old site-cast model, the new precast has many advantages. Due to these brilliant performances, many construction companies are adapting it as their new working method from Europe, Southern America to UAE, India and now spreads to China as well. As an important accessory for precast concrete system, shuttering magnets are designed to fix the panel when pouring the concrete to the molds. Shuttering magnets www. shuttering-magnet.com, which is suitable for all kinds of formwork construction as steel and plywood shuttering system with appropriate adaptor, are composed with very strong permanent magnets ( neodymium magnet) and a shielding steel box. The workers could push or pull the above button to make the magnetic box performed adhesive force or not

with a steel sticker. Itâ&#x20AC;&#x2122;s very easy to control according to requirements. As a professional magnetic assemblies designer and manufacturer, Awesotech Magnetics, have helped and designed many types of precast concrete magnets for our customers from all over the world, such as 350kgs U shape shuttering magnets, 450kgs shuttering magnet, 650kgs magnet box, 900kgs magnetic formwork system, 1800kgs as

well as 2100kgs precast concrete magnet.

East Africa Infrastruture & Engineering Review | March/April 2016

fter 8 years of operation, Stellar Builders has developed a track record as a leader in the Kenyan construction market. The company is currently headquartered in Nairobi, and it services are in the Capital City, several counties and has done some projects in the East African region. The company has built a long-standing reputation and work hard to make sure clients are provided with a positive and enjoyable building experience. Since starting its operation in 2009, sub-contracting with small renovation jobs, Stellar Builders Limited has achieved impressive, consistent growth.

The companyâ&#x20AC;&#x2122;s journey is a short narrative of ambition, focus and daring. After earning their spurs with the lower magnitude works that they could get their hands on, they marshaled the confidence to walk up to the directors of a leading Kenyan developer who was preparing for phase two of an ongoing residential project, Phenom Park Estate, in Langata. The developer was looking for a young, energetic team, to undertake the demanding project in good time and with desired high quality finishes. The Stellar Builders team won the tender, and delivered the job with time to spare, an outstanding performance that clearly left a lasting impression on the

March/April 2016| East Africa Infrastruture & Engineering Review

developer. The rest, as they say, is history. Stellar Builders went on to construct phase 3 and 4 of the project. Since then, the contractor has undertaken several significant projects including 5 Star Meadows in Kiambu, which comprises of 116 maisonettes for KCB Bank Sacco; the Greenspan Estate Phase 4, 5 and 6 in Athi River which is 60 per cent done currently. Stellar Builders is also working on a major housing project on General Mathenge Drive, also in Nairobi. These are just but a few of the outstanding projects that give a serious capability statement due to their magnitude and superior workmanship that have become

CONTRACTOR

the hallmarks of Stallar Builders. Stellar Builders Limited’s project portfolio clearly illustrates its growing strengths. The multi-million shilling jobs undertaken signal the arrival on a much larger stage for Stellar Builders, as the growth momentum increases for the young company.

Self-performing work has allowed Stellar builders to better control critical aspects of construction and enhanced quality control. With in-house quantity surveyor and experienced engineers and project managers, all construction issues are handled quickly as the company’s professionals are able to dedicate

undistracted attention to the job at hand and spend as much time as required at the construction site. The company’s professionals bring on board experience attained internationally, including from tours of duty in countries as far as India, Uganda, Seychelles, Rwanda and Tanzania. This solid mix of experienced

East Africa Infrastruture & Engineering Review | March/April 2016

and highly qualified staff that deliver consistently high level of service is one of the elements that has allowed Stellar Builders to build and maintain successful relationships with clients, architects, engineers and other stakeholders in Kenya’s construction sector. The team provides services that include preliminary evaluation and design review, establishing team administration procedures, reviewing progress of design and construction documents, value management comparisons, value

engineering, cost control and constructability reviews. Having in-house professionals, the company can also provide cost estimating services, cash flow analysis and cost budgeting, construction contract preparation, project scheduling, contractor compliance and quality control, construction supervision, fullservice project management, timeframe management to establish deadlines, implementation of project safety and design-build services. Its capabilities have grown with time,

March/April 2016| East Africa Infrastruture & Engineering Review

as it continues to inspire client confidence. Every project is approached with the same quality and attention to detail and each team member does everything they can to achieve success by performing quality work in the safest, most economical manner, which is a guarantee that Stellar Builders gives to clients. Indeed, safety is a top priority for Stellar Builders Limited. In fact, the company has maintained an OSHA commitment and tradition that has enabled it to report

CONTRACTOR

minimum accident occurrence at its sites and premises. At Stellar Builders, providing a safe work environment is no different than building a quality project - It takes a constant team effort. Beyond that, Stellar Builders Limited has been able to rely on consistent expert external support since its earliest days. Since the company’s formation, it has built sustained good relationships with reputable consultants and professionals in the built

CONTRACTOR

Opting to handle entire construction process inhouse has enabled the company guarantee clients superior workmanship and better timelines in project delivery. environment. In addition, the company holds a top certification with NCA and is licensed to do

business in Kenya and East Africa. It is also the company’s willingness to adapt to the latest trends in the real estate development market that is credited for its remarkable growth. Stellar Builders invests in regular training for its personnel, even as far afield as China, Spain and Korea to gain first-hand knowledge on new machines, trends and technology, and acquire skills that will enable them satisfy the demanding tastes of an

increasingly sophisticated clientele back home. Proof of Success The company is equipped to handle diversified projects because of the nature of its diversified services. Stellar Builders Limited provides a wide variety of pre-construction and construction services, overseeing projects from start to finish. In the end, Stellar Builders Limited understands that it operates in an industry that is all about service. That is why the company believes in doing its best to provide the best possible construction solutions to clients, architects and engineers, distinguishing itself for performance levels befitting its name, Stellar. This value proposition – coupled with the company’s internal skill-set and dedication to quality performance – will allow Stellar Builders Limited to continue growing throughout the region for many years to come. The company remains committed to building quality projects that provide clients with the best possible solution for their construction needs.

ARCHITECTS, PLANNERS INTERIOR DESIGNERS & PROJECT MANAGER

Specializing in Mechanical & Auto Engineering, Mechanical & General Fabrications, Wrought iron & Auto Services / Maintenance, Stainless Steel works, Alluminium works & Structural works

We congratulate Stellar Builders on their 8th Anniversary and achievements in the build industry in kenya Mombasa Road, Opposite Tuskys Headquarters, inside KAY SALT Complex. P.O. Box 1894 - 00606, Nairobi - Kenya. Tel: 020 22 22 121, Cell: +254 721 650 565 Email: info@iaewl.com Website: www.iaewl.com

East Africa Infrastruture & Engineering Review | March/April 2016

We congratulate Stellar Builders on their 8th Anniversary and achievements in the build industry in Kenya Lavington Shopping Centre. P.o. box 74801-00200, Nairobi, Kenya. Tel: 020 2316771 / 2324389 Fax: 4348697, Mobile: 0733 - 609 910 Email: Info@udesign.co.ke • Website:www.udesign.co.ke March/April 2016| East Africa Infrastruture & Engineering Review

We congratulate Stellar Builders on their 8th Anniversary and achievements in the build industry in kenya P.O.Box 49809 - 00100, Nairobi, Kenya. Tel: +254 020 2694236 / 3744283 / 3750010 Fax: 3744283 Email: bhatti@bhattielectricals.com

SUSTAINABILITY

13 Ways to Build an Eco Friendly House

n a hot Tuesday, I sat in a conference room for nearly nine hours but the whole time, all the occupants of the room did not feel the need to either switch on the wall fans or the lights because the lighting and cooling in the room were sufficient. According to an architect who was part of the conference, the room was about 7 by 14 feet but it was fitted with six windows to the left (slightly to the north), two to the right (slightly to the south) and two doors on the same side. Dr Vincent Kitio, the chief Urban Energy Unit Urban Basic Services Branch, UN-Habitat says the features of this building are strategies of green building. He explains. “Green building also referred to as sustainable building design is a shelter that protects you from the negative effects of weather and preserves the environment at the same time.” Kitio says such a building looks at the environment, landscape, economics and the local context

of the area among other features. Advantages One of the advantages of sustainable building design is that it consumes less resource. Dr Kitio explains, “Setting up a green building might be a little expensive at the beginning but cheap in the long run because it is long-lasting and has less impact on the environment.” Architect Musau Kimeu, an environment design expert and an acoustics specialist in Nairobi, Kenya explains that to achieve green building, UN Habitat developed a charter for sustainable building design. It consists of a set of building strategies, which are explained below. STRATEGIES TO REALISE GREEN BUILDING 1. Positioning of the building Architect Kimeu explains that orientation (positioning) of the building is one of the strategies of “Green building also referred to as sustainable building design is a shelter that protects you from the negative effects of weather and preserves the environment at the same time.”

Dr Vincent Kitio, chief Urban Energy Unit Urban Basic Services Branch, UN-Habitat

slab or roof to shield them from direct sun.” He adds, “Locate building services such as toilets, stair case and all inhabitable spaces to the east and the west; these will be used as buffers to the sun.” 3. Long and narrow buildings You should have buildings that are narrow and long as opposed to wide or round rooms because ventilation in such rooms becomes a challenge and so it needs artificial cooling, which will increase your expenses. Additionally, the Urban Energy Technical notes on green building read in part, “Buildings that are narrow in plan help to achieve maximum natural lighting penetration, good cross ventilation and minimise heat gain.”

sustainable building design. He says, “Make sure that the windows do not face either the east or west because this is the direction of the sun. The south and north are ideal.” Dr Kitio explains the significancy of windows and doors facing the east and west, “When the sun rises in the morning, the heat will go through these openings into the house and keep it hot throughout the day and the same will happen when it sets in the evening thus keeping the house hot throughout the night.”

4. Sun shading Sun-shading of all glass areas is another strategy of sustainable buildings design. Kimeu explains that to achieve this, you need to build an extended roof or slab over all glass areas of the house to prevent the effects of direct sunlight. “It is the most important point when building in hot areas because glass allows short wave radiation which goes through glass so any heat that gets in through glass continues to build up which is why you will need artificial air conditioning.”

2. Location of rooms Kimeu says, “You need to bear in mind location of rooms. Having a living room or bedroom facing west or east is not a good idea in East Africa because we have a hot climate. But if your rooms or openings are facing this direction, especially because of the shape of your land, you need a canopy (covering) such as an extended

5. Size of windows Window sizing should be according to the prevailing climate conditions and Uganda being in the tropics or hot and humid area, Dr Kitio advises that the windows should not exceed 30 per cent of the wall. “This will help in preventing heat gain in the house, which comes with using a lot of glass.”

East Africa Infrastruture & Engineering Review | March/April 2016

6. Finishing For a tropical climate, it is recommended that you have your buildings smooth on the surface and light-coloured to reflect heat. “The colour of the building also matters that is why we advocate for light colours which reflect heat such as white mainly for the interior. Dark colours absorb light and heat so you tend to use more light and artificial cooling.” 7. Size of walls “All external walls should be at least 200mm thick to prevent heat from penetrating through. This keeps the heat away for a long time so the interiors remain cool.” 8. Choice of building materials Use local materials as opposed to imported materials. These have none or minimal maintenance, they can easily be harvested and are non-toxic so they have minimal internal pollution and damage to health and are also easy to recycle or to reuse. 9. Power source It is recommended that you use renewable energy through solar power harvesting. 10. Water efficiency You need to use water- saving fixtures such as dual flush systems

and low flow taps. Instead of letting rain water to flow, you should harvest it and use it for various purposes such as watering plants and for cleaning. “This will reduce the pressure of using the piped water which is causing water levels to go down.” 11. Sanitation This calls for the need to have environment friendly toilets such as bio digesters, reed bed sewerage systems and oxidation ponds. 12. Waste management Waste needs to be sorted out at the source and the biodegradable waste used to produce biogas is separated from the nonbiodegradable waste which is recycled. 13. Landscaping When landscaping, use local plants because these require minimal watering and manure instead of fertilisers, which is a chemical that will affect the soil structure and have long-term side effects. Dr Kitio adds, “It is also important that you use permeable or porous paving material to allow water to penetrate the ground. This will raise the water table.”

“The colour of the building also matters that is why we advocate for light colours which reflect heat such as white mainly for the interior. Dark colours absorb light and heat so you tend to use more light and artificial cooling.”

March/April 2016| East Africa Infrastruture & Engineering Review

PRODUCTS

Fighting Counterfeits in the African Market

ounterfeit paints in the Africa market have continued to pose a threat to the expansion and earnings of paint manufacturers despite the companies reporting mixed experiences with this global problem. Counterfeit paints in the Africa market have continued to pose a threat to the expansion and earnings of paint manufacturers despite the companies reporting

mixed experiences with this global problem. Sustained discoveries of fake paint in the East African market point to a serious challenge facing paint makers in the region, unlike in South Africa where better vigilance has ensured that counterfeit paints have not reached market threatening levels. In Kenya, officers from the Kenya Anti-Counterfeit Authority, with the backing of police have time

Manufactures of leading brands suffer losses as a result of counterfeiting

East Africa Infrastruture & Engineering Review | March/April 2016

and again discovered counterfeit paints in various outlets, with the fake paint products always trading under any one of the leading brand names in East Africa’s paint market. Although suspects are arrested and arraigned for trading in counterfeit paint, a leading lobby of manufacturers in East Africa, Kenya Association of Manufacturers (KAM) says the judicial process does not help curb the flourishing counterfeit business.

considering product prices more than the quality of products before purchasing. The agency said Africa is “one market where price is likely to continue to be more important than quality assurance.” Although no reliable data exists on the African counterfeit market, globally the value is in excess of $650 billion with the International Chamber of Commerce reporting the figure will grow to $1.7 trillion by 2015.

all.” Despite the enormity of challenges posed by trade in counterfeits, paint makers in the continent seem to have different experiences with this problem that has been blamed for the loss of more than 2.5 million jobs annually globally, according to International Chamber of Commerce. However, South Africa paint market players seem to have had little adverse experience with counterfeits as some of the members of South African Paint Manufacturers Association say their production process may have locked out counterfeiters from faking their brand of products.

Hard hit countries, the agency said, “have generally poor and lower capacity for oversight.” A recent report by UNODC said the counterfeit products are competitively priced and remain profitable because there are no overheads like those incurred by the manufacture of original products.

The market seem to have few reported counterfeit cases although some of the paint manufacturer feel the need for strengthening of the country’s regulatory framework.

It is not easy to quantify the extent of the counterfeit paint market in Africa because of lack of reliable data and as according to the CEO, brand owners “do not discuss the problem in public for fear of their competitors.” She believes the counterfeit problem is prevalent in economies such as South Sudan, Rwanda and Burundi where she said there is lack “of intellectual property rights legislation combined with the attitude of consumers, purchasing power of the consumers and inability of governments to prioritize counterfeiting in their socio economic programs.”

“Because counterfeiters are essentially unaccountable and have no interest in building a brand reputation, costs can be additionally reduced by cutting corners in the production phase such as employing sweatshop labor, engaging in environmentally unsound manufacturing processes and using inferior-grade materials,” said UNODC.

Eastern Cape-based Newdens, which manufactures a wide range of hardware, candles and beauty products, said although the company has experienced counterfeiting in some its products, none of its eight paint products has been counterfeited. “We have had experience with other types of products of ours being counterfeited, but not paint” said the company’s director Richard Boardman.

But overall the counterfeit market in the region is huge with the United Nations Office on Drugs and Crime (UNODC) saying the trade thrives because of high poverty levels with consumers

Trade in counterfeits has seen many countries in Africa pay dearly. They have been unable to meet their tax revenue targets impacting negatively on their development and recurrent expenditure budgets. UNODC said the tax evasion and competitive pricing “end up undermining the tax base and affect public services available for

March/April 2016| East Africa Infrastruture & Engineering Review

South Africa’s other leading paint maker Plascon told Coatings World in an emailed response that it “uses only top quality materials and reputable manufacturers in the production and packaging of its products, which is why it is a market leader.” “The Plascon process and superlative quality is difficult to match and thus easy to

EXTERIORS

INDUSTRY differentiate from cheap counterfeit products,” the company reported. “The Plascon brand is protected by trademark registration in the countries of Sub-Saran Africa, as well as in East and West Africa.” However, another market player in South Africa, Weatherprufe Coatings, which produces wide range of high quality coatings in Western Cape, said both the paint industry and its leading consumer, the construction industry should be regulated to lock out counterfeits from the market. “The building industry – as well as the paint industry- is poorly regulated leaving room for dishonest practices,” said the company’s technical director Mark Giddey. “It is difficult to quantify, but there are several instances of products being decanted into specified brands for use on building projects especially the supply of inferior products as an “approved equivalent” to a specified paint,” he said. “The consumers are at the mercy of advertising and in general very weak technical advice from retail outlets. There is a strong need for us, the manufacturers, to educate sales staff better, so that the end user can make more informed decisions around product selection,” added Giddey. Basco Paints in East Africa seems to have embraced the training strategy in its war against counterfeits. The company has introduced a training program on how to use their paint products and also detect counterfeits. The company, which has an installed paint production capacity

of two million liters/year with a presence in Uganda, Rwanda, Ethiopia, Tanzania, Burundi and Democratic Republic of Congo, has a running training program targeting schools, which is intended to enable students to understand whether the paint is the right texture and thickness or how many layers should be laid on. In this way, Basco Paints adds its weight behind the fight against counterfeits. The story is not the same with another leading player in East Africa’s paint market, Crown Paints. The

“The level of punishment under the Anti Counterfeit Act for counterfeiting is still low, investigation and prosecution processes take too long, while a common approach to combat counterfeit at regional level is yet to be realized. These are serious challenges and need to be addressed urgently,” Nairobi-based company, which also has a heavy presence in Tanzania and Uganda and now Rwanda has said in the past that it loses $4.5 million every year because of counterfeits. To combat counterfeiting of its products, the company launched a seal proof packaging in addition to using protected bar codes on some of the company’s fast moving products to fight off

counterfeits which are eating into its profits. UNODC is pushing manufacturers, including paint makers, to raise the bar in the war against counterfeits if they expect to remain relevant in the market.

Identification of Exterior Paint Surface Conditions and Recommended Treatments

“If reputable wholesalers and retainers assure that their sources are clean, then the buying of counterfeits will remain a marginal activity,” the agency said. But more importantly, the UN agency said “Africa agencies need outside support to protect their populations while agencies in source countries must continue to crack down on this shameful enterprise.” The trending phenomenon among manufacturers today – outsourcing, has been singled as the biggest contributor to the persistent counterfeit problem. “Outsourced manufacturers working under licences of trademark owners expose the brand to the risk of counterfeiting as the transfer of knowledge, work force and machinery to counterfeit manufacturers is easier from outsourced manufacturers than from the original manufacturer,” said Wakiaga. “There are also cases where bogus goods are mixed with genuine ones in the formal distribution channels without the knowledge of the trademark owner and the distributor and many a time, it is difficult to draw a line between the products. Counterfeit and original products can travel in the same consignment in different containers.”

East Africa Infrastruture & Engineering Review | March/April 2016

t is assumed that a preliminary check will already have been made to determine, first, that the painted exterior surfaces are indeed wood and not stucco, metal, or other wood substitutes— and second, that the wood has not decayed so that repainting would be superfluous. For example, if any area of bare wood such as window sills has been exposed for a long period of time to standing water, wood rot is a strong possibility. Repair or replacement of deteriorated wood should take place before repainting. After these two basic issues have been resolved, the surface condition identification process may commence.

The historic building will undoubtedly exhibit a variety of exterior paint surface conditions. For example, paint on the wooden siding and doors may be adhering firmly; paint on the eaves peeling; and paint on the porch balusters and window sills cracking and alligatoring. The accurate identification of each paint problem is therefore the first step in planning an appropriate overall solution. Paint surface conditions can be grouped according to their relative severity: •CLASS I conditions include minor blemishes or dirt collection and generally require no paint removal; •CLASS II conditions include failure of the top layer or layers

March/April 2016| East Africa Infrastruture & Engineering Review

of paint and generally require limited paint removal; and •CLASS III conditions include substantial or multiple-layer failure and generally require total paint removal. It is precisely because conditions will vary at different points on the building that a careful inspection is critical. Each item of painted exterior woodwork (i.e., siding, doors, windows, eaves, shutters, and decorative elements) should be examined early in the planning phase and surface conditions noted. CLASS I Exterior Surface Conditions Generally Requiring No Paint Removal Dirt, Soot, Pollution, Cobwebs, Insect Cocoons, etc.

EXTERIORS Cause of Condition Environmental “grime” or organic matter that tends to cling to painted exterior surfaces and, in particular, protected surfaces such as eaves, do not constitute a paint problem unless painted over rather than removed prior to repainting. If not removed, the surface deposits can be a barrier to proper adhesion and cause peeling. Recommended Treatment Most surface matter can be loosened by a strong, direct stream of water from the nozzle of a garden hose. Stubborn dirt and soot will need to be scrubbed off using l/2 cup of household detergent in a gallon of water with a medium soft bristle brush. The cleaned surface should then be rinsed thoroughly, and permitted to dry before further inspection to determine if repainting is necessary. Quite often, cleaning provides a satisfactory enough result to postpone repainting. Mildew Cause of Condition Mildew is caused by fungi feeding on nutrients contained in the paint film or on dirt adhering to any surface. Because moisture is the single most important factor in its growth, mildew tends to thrive in areas where dampness and lack of sunshine are problems such as window sills, under eaves, around gutters and downspouts, on the north side of buildings, or in shaded areas near shrubbery. It may sometimes be difficult to distinguish mildew from dirt, but there is a simple test to differentiate: if a drop of household bleach is placed on the suspected surface, mildew will immediately turn white whereas dirt will continue to look like dirt.

HEALTH & SAFETY

It may sometimes be difficult to distinguish mildew from dirt, but there is a simple test to differentiate: if a drop of household bleach is placed on the suspected surface, mildew will immediately turn white whereas dirt will continue to look like dirt. Recommended Treatment Because mildew can only exist in shady, warm, moist areas, attention should be given to altering the environment that is conducive to fungal growth. The area in question may be shaded by trees which need to be pruned back to allow sunlight to strike the building; or may lack rain gutters or proper drainage at the base of the building. If the shady or moist conditions can be altered, the mildew is less likely to reappear. A recommend solution for removing mildew consists of one cup nonammoniated detergent, one quart household bleach, and one gallon water. When the surface is scrubbed with this solution using a medium soft brush, the mildew should disappear; however, for particularly stubborn spots, an additional quart of bleach may be added. After the area

is mildew-free, it should then be rinsed with a direct stream of water from the nozzle of a garden hose, and permitted to dry thoroughly. When repainting specially formulated “mildewresistant” primer and finish coats should be used. Excessive Chalking Cause of Condition Chalking—or powdering of the paint surface—is caused by the gradual disintegration of the resin in the paint film. (The amount of chalking is determined both by the formulation of the paint and the amount of ultraviolet light to which the paint is exposed.) In moderation, chalking is the ideal way for paint to “age,” because the chalk, when rinsed by rainwater, carries discoloration and dirt away with it and thus provides an ideal surface for repainting. In excess, however, it is not desirable because the chalk can wash down onto a surface of a different color beneath the painted area and cause streaking as well as rapid disintegration of the paint film itself. Also, if paint contains too much pigment for the amount of binder (as the old white lead carbonate/oil paints often did), excessive chalking can result. Recommended Treatment The chalk should be cleaned off with a solution of l/2 cup household detergent to one gallon water, using a medium soft bristle brush. After scrubbing to remove the chalk, the surface should be rinsed with a direct stream of water from the nozzle of a garden hose, allowed to dry thoroughly, (but not long enough for the chalking process to recur) and repainted, using a non-chalking paint.

East Africa Infrastruture & Engineering Review | March/April 2016

Preventing accidents on a construction site

Everyone on the site should wear the proper safety gear. From commercial to small-scale residential, construction sites can be dangerous places. Although contractors do all they can to avoid injuries and inform workers about safety precautions, accidents still happen. With jobsite safety in mind, here are some common construction site injuries and what you can do to keep your site safe: No matter how safe you think your construction site is, accidents are inevitable. Injuries and fatalities at construction sites are on the rise, naturally, with increased construction activity and enhanced competition for projects across the region. In order to avoid injuries and fatalities at your jobsite, there are some common accidents you can watch out for.

Common Accidents on the Construction Site Taking a proactive approach to safety on the jobsite will help keep your workers safe. That’s why it’s important to be aware of common accidents that could occur at your jobsite. After all, accident awareness is the key to prevention. Among the things to look for: Trips and Falls - Most construction sites have uneven terrain, tripping hazards, and conditions that require work on ladders, scaffolding, and roofs. These hazards in combination with high working conditions can result in fatal trips and falls. Machinery/Vehicle Accidents - There are a lot of moving parts to a construction site, including machinery, vehicles, and large trucks on and around the jobsite.

March/April 2016| East Africa Infrastruture & Engineering Review

With the increased activity on construction sites, workers are more susceptible to being hit by moving vehicles and machinery. Falling Objects - Workers up high don’t always pay attention to what’s going on down below. This could result in injuries and fatalities due to falling objects and debris. Exhaustion - Construction work usually requires hours of manual labor in the outdoors. This can quickly cause exhaustion and when workers are tired, it can lead to mistakes and an increase in jobsite injuries. Construction Site Accident Prevention Now that you have a better understanding of some of the injuries that take place in construction, you can take the right preventative measures. Here are just a few ways to

HEALTH & SAFETY

avoid accidents at your jobsite: Mandatory Safety Meetings Holding a safety meeting at the start of each day will ensure all workers are on the same page. In the safety meeting, you can mention changes to the jobsite as well as what machinery will be used in different areas of the site throughout the day. Safety Gear - You should require everyone on the job site to wear the proper safety gear. Whether it’s a hard hat, goggles, gloves, or protective suit, these items could save your life. Likewise, harnesses should be used for all workers working on rooftops and scaffolding. Reflective Clothing - You should provide all workers with high-visibility apparel including reflective vests. This will reduce the chances of workers getting hit

by vehicles and other machinery. Regular Breaks - Make sure all workers take regular breaks to reduce the chances of accidents due to exhaustion. Be aware of the risks around you. Common hazards on construction sites include falling debris and materials, live electrical wiring, and falls from high heights. Keep it clean. Put up tools and materials when you’re done using them and ensure your workspace is free of hazards. Keep all walkways clear and free of debris to prevent unnecessary falls and slips. Take part in any training provided. Additionally, don’t operate any equipment you’re not qualified or trained to use. Report any dangerous working conditions. If you spot hazards

in your work environment, report it to your employer. If necessary, go to your union representative or file a complaint with the Occupational Safety and Health Administration, before quitting altogether (keeping in mind your colleagues!). Maintain your tools. Before using a piece of equipment or machinery, ensure it is in proper working order. Keep all tools and machinery on a regular inspection schedule. Follow any and all guidelines set in place by OSHA or your employer. These are designed to keep you, your colleagues, and anyone else on the site safe. If you don’t want your construction site to be an accident waiting to happen, then put the safety pointers above to good use.

East Africa Infrastruture & Engineering Review | March/April 2016

March/April 2016| East Africa Infrastruture & Engineering Review

East Africa Infrastruture & Engineering Review | March/April 2016