KENYA NATIONAL HIGHWAYS AUTHORITY

INTERCONTINENTAL

CONSULTANTS AND

TECHNOCRATS PVT. LTD.

GRANT

THORNTON

INDIA LLP.

CHITALE & CHITALE

PARTNERS

GEODEV (K) LTD.

KENYA PPP ROADS INVESTOR CONFERENCE15TH NOVEMBER 2016

OPERATION AND MAINTENANCE OF

THE NAIROBI-THIKA HIGHWAY (A2) ON PPP

Please note that this presentation is for informational purposes only. Any comments orstatements made herein do not necessarily reflect the views of KeNHA nor IntercontinentalConsultants and Technocrats Pvt. Ltd (ICT). The information is intended for the recipient's useonly and should not be cited, reproduced or distributed to any third party without the priorconsent of the authors. Although great care is taken to ensure accuracy of information neitherIntercontinental Consultants and Technocrats Pvt. Ltd (ICT), nor KeNHA can be held responsiblefor any decision made on the basis of the information cited.

1

Disclaimer

PROJECT ROAD

50 Km highway connecting

Nariobi city and satellite town

Thika including

3 Nairobi city connectors

27 major structures

Popularly known as “Thika Super-

Highway (A2)” - 6/8 lanes with

service lanes/cycle tracks

Passes through highly urbanized

and semi-urban regions

Already operational, currently

under maintenance contract

NAIROBI CITY CONNECTORS

FOREST ROAD

3.6 km

4/6-lane dual carriageway

NAIROBI CITY CONNECTORS

MURANGA ROAD

4.5 km

6/8-lane dual carriageway

NAIROBI CITY CONNECTORS

RING ROAD NGARA

4.3 km

6-lane dual carriageway

PANGANI JN TO KASARANI

8 km

8-lane dual carriageway

Service roads on either sides

KASARANI TO THIKA OVERPASS

28 km

6-lane dual carriageway

Service roads on either sides

THIKA TOWN TO BLUE POST HOTEL

2 km

4-lane dual carriageway

9

TRAFFIC PROFILE

65000 to 83000PCU

65000 to 83000PCU

35000PCU

35000PCU

65000 to 82000PCU

65000 to 82000PCU

110000 to 150000PCU

110000 to 150000PCU

LANES TRAFFIC

55000 to 60000PCU

55000 to 60000PCU

TRAFFIC COMPOSITION

67.34%

3.35%

15.67%

5.49%7.23%

0.17%0.49% 0.20%

0.07%

Car/Taxi/Auto

2-W/Boda boda

Matatu/Mini Bus

Medium and Large Bus

LGV

2 Axle

3 Axle

MAV

NMT (Cycle/H. Cart/ADV)

10

PROJECT SCOPE

Primary objective is Operation & Maintenance of the Project

Road, including initial capex on provision/installation of

Construction of new foot over bridges*

Street Lighting on Main Carriageway / Service Roads

HTMS for the entire project road

including Emergency Response System

Spot Improvements at intersections

Concession Period -10 years

* Thika Superhighway speed-breakers, zebra crossings to be removed11

ILLUSTRATIONS

HIGHWAY TRAFFIC MANAGEMENT SYSTEM

EMERGENCY RESPONSE SYSTEM

13

PPP STRUCTURE

KeNHA

Project Company

Investors

Lenders

Project Agreement

TollOperator

Dedicated Funding Facility

Government

Backstopping in case of revenue shortfall

ServicePayments

Users

Toll

14

KEY RISK ALLOCATION

Rights, Responsibilities, Risks Project Company Contracting Authority

ROW

Design

Necessary Approvals

Construction

Financing

Force Majeure

Axle overloading

Revenue

Operations & Maintenance

Performance

Local Currency Inflation

USD:KSH Exchange Rate

Local Currency Interest Rate

Political

15

PAYMENT MECHANISM

Form of payment to Project Company

Performance-linked Service Payments, largely linked to ProjectRoad Availability

Deductions

Service Payments will be deducted for not meeting the

Performance Standards

Cumulative deductions leads to Event of Default / Termination

Indexation of Service Payments

Forex Local currency interest rate Inflation

The provisions of the Project Agreement – in accordance with the

‘International Practices’

Force Majeure

Termination Payments

Lenders Direct Agreement

Dispute Resolution

Change in Law, etc.

16

KEY TERMS OF THE PROJECT AGREEMENT

Nov ‘16

Publication of RFQ Notice

4th week, Jan ‘17

RFQ Evaluation and short-listing of pre-qualified

bidders

1st week, Feb ‘17

Issuance of RFP documents

including DCA

4th week, Jun. ‘17

Selection of Preferred Bidder

2nd week, Sep. ‘17

Signing of PA

Dec ‘17

Financial Closure

IMPLEMENTATION PLAN

17

18

ASANTE SANA