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Republic of Kenya
Ministry of Information and Communications (MoIC) MASTER DELIVERY PARTNER – PHASE 2 (MDP2) FOR KONZA TECHNO CITY (KONZA)
REQUEST FOR EXPRESSIONS OF INTEREST (REOI)
Submission Contact Information: Submissions can be sent to Henry Mung'asia and Nicholas Awiti at email@example.com and firstname.lastname@example.org Questions relating to the EOI can be submitted to Dr. Catherine Adeya and Paul Macharia at email@example.com and firstname.lastname@example.org respectively. Submission Deadline: January 10, 2013 17:00 hours local Kenyan time at Submission Requirements: Submissions must be one single PDF file and must not exceed 10MB. Please use the following guidelines for submissions: 1) Letter of Expression of Interest 2 pages 2) Lead firm description 5 pages 3) Description of team, team members and responsibilities 15 pages 4) Organizational chart of team 2 pages 5) Resumes of key individuals 12 pages 6) Project experience 12 pages 7) Approach to assignment 5 pages 8) Narrative on gaps in: scope, MDP2 role, client role, etc. 3 pages Procurement Timeline: January 17, 2013 A shortlist of firms to be invited to respond to the RFP will be announced January 18, 2013 RFP issued to shortlisted firms February 15, 2013 RFP submissions due February 22, 2013 MDP2 selection announced
Information on the project can be found at http://www.konzacity.co.ke
1) Background on Project The Konza Techno City (KTC) project is a new city 60km outside of Nairobi. It is being developed to position Kenya as a leading ICT Nation in Africa by leveraging and expanding Kenya’s technology focused industries. The project supports Kenya Vision 2030 which aims to bring Kenya into middle-income status in the next 20 years. The mission statement of the Konza Techno City is: to be a sustainable, world-class technology hub and a major economic driver for the nation, with a vibrant mix of businesses, workers, residents, and urban amenities. KTC has become one of the national Vision 2030 projects. The Government of Kenya (GoK) purchased a 2,058 hectare (5,000 acre) site along the Nairobi–Mombasa road. The Ministry of Information and Communication (MoIC), which is spearheading the project, engaged International Finance Corporation (IFC) as the Transaction Advisor. IFC hired the Master Delivery Partner 1 (MDP1) to prepare a detailed economic development strategy and physical master plan for Phase 1 to be developed in the next five years. The MDP1, together with the MoIC and the IFC, has developed a detailed vision for the development and an implementation plan which includes: Anchor Tenant Strategy Physical Master Plan Infrastructure Financing Plan, Business and Cash-Flow Plan Governance plan for the Konza Technology Development Authority (KOTDA).
Furthermore, together with the Department of Physical Planning (DPP), the MDP1 submitted the Local Physical Development Plan (LPDP) which is expected to be approved in January 2013. The output of MDP1 will guide the implementation of the subsequent four and a half years of Phase 1. Implementation will be led by the Konza Technocity Development Authority (KOTDA) which will set the policies and maintain the vision for the project for the subsequent 20 years. The KOTDA is expected to be established and staffed in 2013. Initially it will require a variety of expert delivery partners including the Master Delivery Partner 2 (MDP2) for which this scope of work describes.
Location of KTC Phase 1 Master Plan on site
The new technology city will be implemented by both government and private sector actors under a PublicPrivate Partnership (PPP) approach. The GoK will bear the cost of public investments in form of roads, parks and public amenities. Some utilities which have direct revenue-generating services such as water and wastewater, public transportation, solid waste management and electricity and may be structured as PPPs so as to utilize private sector technical expertise and private sector financing. This will depend on market appetite and need to have all the on-site utilities in place in a synchronized manner in order for Phase 1 land to be serviced. Most buildings in KTC Phase 1 will be developed by private sector real estate developers but
Rendering of KTC Phase 1 Master Plan will conform to guidelines set out by KOTDA (or MoIC with support of MDP2 prior to formation of KOTDA). KTC Phase 1 is currently planned to include 1.5M m2 of buildings on 150ha of land. This is intended to be sufficient critical mass to demonstrate the type of high quality physical environment and attractive business environment that will catalyze subsequent 20 years of development on the remaining 2,000 ha of KTC land. Due to the distance from Nairobi, the city will be a stand-alone city and include all segments of Kenyan society. It will represent the type of open, inclusive and vibrant social environment that will attract the best Kenyan and international technology experts and businesses. KTC will demonstrate many aspects of smart city planning for energy, water, transportation, security and entertainment. Significant attention has been paid to studying what will attract businesses and one of the highlights of this work by MDP1 was an emphasis on reliable, high quality, and low cost utilities and public spaces. KTC intends to be an affordable, clean, and
Rendering of KTC Commercial District
Rendering of KTC Residential District
vibrant community where residents walk, ride bicycles or ride clean and fast public transportation. Success indicators for KTC Phase 1 include construction of a new, high quality Hospital, a Science and Technology University, and a small number of high quality technology anchor tenants. Success will also include the creation of a diverse and vibrant city which currently includes: 1.1M m2 of residential 100,000 m2 of commercial office 200,000 m2 of university and dormitory 100,000 m2 of amenity space.
Phase 1 will include 30 ha of urban parks as well as a large Wildlife Corridor along the southern boundary of the site. These spaces will be critical to creating an attractive community which will attract entrepreneurial technology leaders and businesses. The Konza Technology City Development Agency (KOTDA) will lead the development of the project by creating the physical infrastructure and public space including business incentives and regulations. KOTDA with the support of MDP2 will ensure high quality roads, parks and utilities are the foundation for Phase 1. The key functions of KOTDA include: Ensuring capital budget allocation from government in order to build the public roads and parks. KOTDA will sign concession agreements with third party utility providers for electricity, water and sewer, telecommunications, public transportation operations, and solid waste management. KOTDA will also coordinate with government ministries and county governments for services such as Schools, Police, Fire, Postal Service and others. KOTDA will be responsible for ensuring sufficient development of affordable housing will be available so that all segments of Kenyan society will be able to live in KTC and benefit from the government investment.
2) Role of MDP2 The Master Delivery Partner 2 (MDP2) will support the development plans of the Government of Kenya and the KOTDA through the implementation of Phase 1 of KTC. The role of MDP2 will be to provide the following professional services to supplement the capacity of the KOTDA. 1) 2) 3) 4) 5) 6) 7) Creation of Branding and Marketing Campaign for KTC Public Realm Guidelines and Building Parcel Guidelines Land Lease Negotiations with Parcel Developers Project Financial Analysis and Summary Capacity Building and Organization Development for KOTDA Design Management for Public Infrastructure Construction Management for Public Infrastructure
The services provided by MDP2 will be delivered concurrently and are all expected to commence upon the signing of the MDP2 contract. MDP2 may be a consortium of firms to provide different aspects of implementation services, but if all services will be provided by one firm, then specific teams will need to be set up to deliver each type of services.
Creation of Branding and Marketing Campaign for KTC One of the first tasks that MDP2 will deliver is the Branding and Marketing Campaign. KTC currently has a website, a logo and a brand in the Kenyan and International marketplace. MDP2 should build on these existing brand assets as well as the vision and direction of KTC created by MDP1 to develop a new brand and marketing campaign. The creation of a new brand should be developed based on the target audiences for whom the KOTDA is trying to attract to fulfill the vision of KTC. Target audiences will include future parcel developers (residential and commercial building developers), technology business who have a strategic fit to the vision of KTC, local and international universities and students who will move to KTC in the near future, families and residents who will move to KTC in the near future, amenity businesses which will support the residential population living and working in KTC, Kenyan and International investors and other key stakeholders who will support the success of KTC. The scope of MDP2 branding and marketing work will include a revised logo, a revised website, marketing materials targeted at each target audience, a plan for a campaign to provide marketing materials to each target audience, support to KOTDA staff to implement the marketing campaign and ongoing public relations and communications support to KOTDA staff. The bulk of the branding and marketing work is expected to be complete within the first year of the MDP2 contract, but some ongoing updates and public communications work will extend for the full term of the MDP2 contract.
Public Realm Guidelines and Building Parcel Guidelines To support the project vision and the branding initiatives, detailed guidelines will be developed by MDP2 for all public realm spaces and for all building parcels. The guidelines for streetscapes, plazas, and parks will be developed to clarify the vision of KTC which will attract both international and Kenya businesses. Guidelines will include performance based metrics such as street lighting levels, indication of quality of pavement materials, indications of public program activities throughout Phase 1, indications of which areas of the master plan should provide specific types of retail uses. Guidelines for each private building parcel will be developed to reinforce the urban design concepts for the public realm. MDP2 will create public space 5
guidelines which will serve as the basis of design for Specific parcel guidelines will be developed for each parcel and will include design features such as treatment of street frontage, setbacks, building usage and density requirements, parking guidelines, treatment and location of entrances, size and types of retail at street level, and other urban design issues which will be required by private developers to create the type of city that meets the vision of KOTDA. Public space guidelines will not be tender documents for construction, but rather basis of design documents for future road and park designers to translate into tender documents. Parcel guidelines will be included in parcel lease terms for which building designs will be required to conform. MDP2 will also be responsible for enforcing and supporting private parcel developers to implement the requirements of the development guidelines for each parcel.
Land Lease Negotiations with Parcel Developers MDP2 will be called upon to support the negotiations for each parcel land lease deal throughout Phase 1. There are approximately 100 parcels in Phase 1, a predominance being residential, but other critical parcels will be commercial and university parcels. The real estate strategy developed by MDP1 calls for the infrastructure costs of Phase 1 to be funded by GoK and private sector building developers to fund most vertical construction in Phase 1. The anchor tenant outreach and market assessment of MDP1 found the residential market to be strong for the Konza site and that residential developers are likely to be attracted to lease parcels in Phase 1 KTC and finance the cost of the middle and upper segments of the residential market. For the lower and bottom segments of the residential market the KOTDA will have to structure land leases and user fees so as to attract private investment to supply the needed residential units to create the diverse and inclusive community KTC aspires to be. For the commercial market, which will ultimately be the driver of success of the project, MDP1 found the cost of construction and the required floor space lease rates may require low cost land leases and other lease terms to incentivize private developers to build and finance the commercial buildings in Phase 1 of KTC. The assumption for the university tenants in Phase 1 is that the land lease payments will be minimal as attracting high quality universities is also a key factor in the future success of the KTC vision. In addition to the complexity of the variety of land parcel lease rates for each type of parcel, the timing of which each parcel is let out to bid will significantly affect the structure of lease payments for each parcel. Also if the market responds well to commercial or residential parcels, then higher lease payment terms can be negotiated as each parcel is let out to bid. There will be many other lease terms such as parcel design guidelines as described above, a schedule to begin and complete construction, design guidelines and zoning requirements, street frontage usage, parking requirements and other details which will be important to create the sustainable, livable, walkable urban environment in which KTC envisions. KOTDA will need financial analysis support and insight into the real estate market to effectively negotiate the lease of each land parcel, thus the ability of MDP2 to support these land lease negotiations will be critical to the success of KTC.
Project Financial Analysis and Summary In order to best provide support to KOTDA for lease negotiations and other strategic aspects of the development of KTC, MDP2 will maintain 20 year financial projections of all revenues, expenses, asset values and other financial components of KTC. MDP2 will prepare budget requests for GoK funding on an annual basis to ensure GoK has allocated the required funds to sufficiently invest and catalyze Phase 1 of KTC. MDP2 will advise KOTDA as to appropriate expenditures required each year for the investment in public infrastructure. MDP2 will advise KOTDA as how best to distribute any funds available from lease payments, user fees, sales or any other revenues generated from land development in KTC. MDP2 will act as the overall financial manager for KOTDA for the first four years of Phase 1 and will report to the Chief Financial Officer for KOTDA.
Capacity Building and Organization Development for KOTDA Throughout the four years of implementation and construction of KTC Phase 1, the KOTDA will continue to grow and develop. A small, but critical, component to the MDP2 assignment will be to support the growth of the development authority. MDP2 will build on the organizational structure developed by MDP1 to create a small, but effective development authority organization. MDP2 will generate job descriptions for key KOTDA positions. MDP2 will assist with the local and international candidate searches and the interviewing process of candidates. MDP2 will conduct on-job training to appropriate KOTDA staff in project management skills, real estate development analysis, design and construction management and a variety of other capacity building skills. MDP2 will truly be a partner to the KOTDA and should endeavor to build sufficient capacity within KOTDA during the four years of the contract so that the KOTDA will have the organizational structure, skills and capacity to continue the delivery of the KOTDA mission without MDP2 for future phases of development.
Design Management for Public Infrastructure A major component of the MDP2 assignment which will commence at the very beginning of the contract will be to manage the detailed design process for roads, utilities distribution and parks for Phase 1 of Konza Technology City. MDP2 will be responsible for developing a strategy for phasing the design packages so that design and construction will be completed as quickly and efficiently as possible. Also, MDP2 will be expected to have experience with Smart City principles and ideas around converged utility planning that it can integrate into the design procurement and management role, building on the existing MDP1 infrastructure plan. For each design package, MDP2 will develop a comprehensive basis of design and scope of work so that Kenyan and international design teams can bid and present qualifications to perform the detail design and engineering consultancy. MDP2 will administer a procurement process for the design consultancy which will include the KOTDA and will adhere to GoK procurement requirements. MDP2 (or any MDP2 subconsultants) will not be eligible to bid for full design and engineering work as they will be reviewing and approving the work of the design and engineering team on behalf of KOTDA. MDP2 will work with KOTDA to define a detailed scope of work for the final design and engineering for each defined bid package. MDP2 will explicitly define the physical area for each bid package as well as the entire sub-consultant design team required to deliver tenderable design documents. MDP2 will define the design schedule processes into appropriate RIBA stages for regular design and costing review. Since some utilities such as water, sewer, communications and public transit will be designed and delivered through public private partnerships, MDP2 must coordinate with some utility requirements by other implementation partners. MDP2 will work with KOTDA and GoK procurement rules to procure all design, construction and other consultants required for implementation of Phase 1. The scope of MDP2 design management and construction management will include: roads and streetscapes, roadway build-up, public transport alignment roads and stations, sidewalks and streetscapes, utilities distribution street lighting, fire hydrants, and all requirements for a high quality public space. Primary electricity, water and sewer facilities and distribution networks are expected to be designed, funded and built by private sector utility partners, and thus, will not be in the scope of MDP2 work, but coordination with these utilities will be part of the MDP2 scope as they will be laid in the road alignments. MDP2 will not be responsible for any vertical building construction as the current implementation plan outlines a strategy to lease parcels to building developers who will be responsible for designing, funding, constructing, leasing and operating the buildings.
Construction Management for Public Infrastructure The largest component of the MDP2 assignment will be to oversee and manage construction of Phase 1 infrastructure on behalf of the KOTDA. This component of work will begin with planning a strategy to divide the construction work of Phase 1 infrastructure work into packages which can be bid to General Contractors (GCs) through a competitive bid process. The infrastructure construction delivery strategy will include the size, scope and schedule for each construction bid package. MDP2 will form a selection committee with KOTDA to ensure the selection of each GC fits with the goals and aspirations of KTC. MDP2 will bring construction management and construction risk assessment expertise to the KOTDA organization so as to ensure the selection of each GC will deliver the highest possible quality construction of public space and utilities while ensuring the lowest possible price. As construction on Phase 1 commences, MDP2 will supervise and provide quality control reviews and clientrepresentation services for each construction contract. The MDP2 will be responsible for certification for completion of construction milestones for each bid package for payments. The MDP2 will manage the wider site construction conditions and provide site-level construction quality controls on behalf of KOTDA. Issues such as coordination of construction material deliveries, site security, construction safety and other site-wide construction issues will be monitored by MDP2. MDP2 (or any MDP2 sub-consultants) will not be permitted to bid for any general contractor contracts as MDP2 will be reviewing and approving work of contractors on behalf of KOTDA.
Plan of KTC Phase 1
3) Scoring Criteria for Short List Each submission will be scored according to the following criteria. A maximum of 100 points will be possible and the top six teams with the highest score will be invited to submit a full proposal. Short Listing Criteria Experience developing branding and marketing materials for real estate projects Expertise with financial negotiations for real estate projects Experience with organizational capacity building in African government organizations or similar Experience procuring and managing design teams for road, utilities and public spaces projects Expertise in construction management of roads, utilities and public spaces construction projects Experience in Kenyan construction industry Firm capacity to mobilize and utilize Kenyan staff Alignment of KTC Vision (speed, quality, sustainability, community) Points
1 2 3
10 15 10
6 7 8
10 10 10
1 Experience developing branding and marketing materials for real estate projects MDP2 must demonstrate experience in delivering branding and marketing campaigns for real estate projects. Also MDP2 will require experience with targeting the types of audiences who have a strategic fit with the interests of KTC with particular focus on those audiences that are likely to be developers, investors and tenants for KTC. Experience planning for a campaign to provide marketing materials to a variety of target audiences will be scored favorably. Commitment to support KOTDA staff to implement the marketing campaign and ongoing public relations and communications support to KOTDA staff will be scored favorably. 2 Expertise with financial negotiations for real estate projects Experience supporting successful negotiations for parcel land lease deals with private developers and/or tenants throughout a multi-year project, including residential, commercial and university parcels will be scored favorably. This includes proven success in understanding market conditions in order to set appropriate lease rates for different market segments. Also, as regards the commercial and university parcels, specific demonstrated experience in deals that attract ICT and ITES tenants, and university tenants will be scored favorably. 9
3 Experience with organizational capacity building in African government organizations or similar MDP2 must demonstrate successful experience in support of the growth of development authority similar to KOTDA, including building on the organizational structure developed by MDP1 to create a small, but effective development authority organization. MDP2 will demonstrate experience in the search and interviewing of candidates for key KOTDA positions and their training. Successful experience in building capacity in an development authority organization similar to KOTDA and bringing the organization to a fully staffed and operational position in under 5 years will be scored favorably. The focus of the experience should be on capacity building in project management skills, real estate development analysis, design and construction management and a variety of other capacity building skills. KOTDA will also be engaged in city governance functions and to the extent possible the MDP2 should also assist to reinforce those skills and demonstrate relevant experience. .
MDP2 will truly be a partner to the KOTDA and should endeavor to build sufficient capacity within KOTDA during the four years of the contract so that the KOTDA will have the organizational structure, skills and capacity to continue the delivery of the KOTDA mission without MDP2 for future phases of development. 4 Experience procuring and managing design teams for roads, utilities and public spaces projects A key component of the MDP2 assignment will be the procurement and supervision of the design consultants for Phase 1 roads, utilities, and public spaces. Some aspects of infrastructure will be the responsibility of private sector service provider partners who will procure their final design according to the standards set in their PPP agreement. For the infrastructure components for which KTDA is responsible, MDP2 will let out design package scopes of work, procure the design teams, manage the design processes and approve deliverables for construction drawing deliverables for each parcel. Experience managing large infrastructure design teams with dozens of consultants will be scored favorably. Also, the MDP2 will be expected to have experience with Smart City principles and ideas around converged utility planning that it can integrate into the design procurement and management role, building on the existing MDP1 infrastructure plan. There will be a large number of design stage approvals required to be obtained from government agencies for the on-site infrastructure aspects of Phase 1, so the MDP2 must demonstrate ability to work with government agencies, preferably in Kenya or East Africa, which provide approvals for infrastructure services, construction approvals and occupancy approvals. 5 Expertise in construction management of roads, utilities and public spaces construction projects The lead firm should demonstrate a global expertise in the implementation of program management for large urban expansion projects of similar scale and complexity to Konza Technology City. Bidders will be scored based on experience with projects over 200 acres, mixed use development, and over 10 million square feet in overall project development area. Project experience in developing countries, and in Africa, will be beneficial. However, it is understood that very few projects with these characteristics have taken place in developing countries and that the main experiences will come from developed economies. In this context, the consultant must demonstrate how it expects to transfer effectively its experiences to an environment and location such as Konza. Scoring will include project experience coordinating the construction implementation of high quality, mixed use communities around the world. Experience with development requirements for not only commercial and residential development, but also social amenities such as schools, parks, roads, utility services, and other community development components will be scored favorably. An emphasis will be placed on experience in 10
management of projects with a predominance of BPO/ITES development as this is seen as the fundamental economic driver of the overall project even though it is a small percentage of the overall construction program and construction budget. Experience with supply chain management for similar large scale projects will be scored favorably. Phase 1 of KTC is currently planned with more than 30km of roads and 30 hectares of parks to be built within a 5 year period and requiring construction management by MDP2 on behalf of KOTDA. Also, depending on viability of some infrastructure PPPs or need for potentially faster construction of utilities under public funding, the MDP2 will also be required to manage the construction of any specific utilities to be determined. Most buildings will be developed by private sector developers and construction of these parcels will be managed directly by the developer. All of the roads and utilities will be publicly funded and developed under the control of the KOTDA and MDP2. MDP2 will be responsible for finalizing the scope of construction for each bid package, bidding construction contracts to general contractors, and managing general contractors. Thus bidders must demonstrate the ability to manage multiple construction contracts concurrently. Bidders should demonstrate their approach to public procurement of general contractors and their approach to achieving high quality contractors at the lowest possible price. The MDP2 will be responsible for bidding and negotiating construction contracts on behalf of the KTDA, thus experience representing a client in the bid and contract negotiation will be a significant component to scoring of this criteria. Demonstration of leveling bids and managing construction cost risk will be scored favorably. Demonstrating experience providing general contractors a single point of contact for the management of a large construction site will be scored favorably. Site construction logistics within MDP2 remit will include materials deliveries and storage, construction laborers housing and transportation, site construction safety practices and temporary power and fuel delivery. Demonstration of these aspects of large land development and large scale construction management will be scored favorably under this criterion. Finally, MDP2 will be responsible for approval of payments for general contractors throughout the site, thus experience defining milestones for payment of construction for infrastructure services is required. Demonstration of checks and balances as well as methods to identify corruption and misdealing will be important to the role of MDP2. 6 Experience in Kenya construction industry A key component of the MDP2 assignment will be the procurement and supervision of construction contracts in Kenya. The bidding team should have some component, either in-house, or as a team member with experience with the construction industry in Kenya. This local experience will support detailed cost estimating, assessing reputation of general contractors and subcontractors, identifying supply-chain materials issues, and legal or contractual aspects unique to the Kenyan construction industry. Experience with Kenyan construction labor market will also be scored favorably as the project may employ thousands of construction workers in Phase 1. Experience and knowledge of acquisition of construction equipment in Kenya will be scored favorably as a sizable portion of the construction equipment currently existing in Kenya will need to be located on the project during the peak of construction of Phase 1. 7 Firm’s capacity to mobilize and utilize Kenyan staff Considering the size and complexity of the MDP2 assignment, it is assumed bidders will be required to draw upon staffing and knowledge resources from around the world. Bidders should demonstrate their ability to mobilize staff from global resources quickly and efficiently so as to provide global insight into the structure and staffing of the project. Bidders will be scored favorably if the composition of the project staffing contains a significant proportion of Kenyan staff, either through existing staff which will be transferred to the project, or through a hiring and training program. 11
Bidders are encouraged to team with representatives with both international and local construction management expertise. Both local and international partners should demonstrate their experience developing training programs for junior staff and local staff so as to encourage knowledge transfer and ability to utilize Kenyan staff. Experience training local staff, capacity building and technology transfer will be scored favorably. 8 Alignment with KTC Vision The vision of KTC is to be a model for sustainable economic development for East Africa through the education, incubation and attraction of IT Enabled Services Industry. The project aspires to achieve sustainability, a livable community based on mixed use of land, diverse urban development patterns including public transportation, lively and livable streets, social and cultural attractions and attractive public spaces. The ability to integrate the ITES industry requirements into the planning and design of an appropriate and leading edge mix of start-up critical mass businesses will be scored favorably. The submission will be scored based on the experience of key individuals to deliver the Konza Technology City an economically, socially and environmentally sustainable project. Bidders’ submissions should demonstrate alignment of team values toward an integrated pedestrian focused township with university, R&D, office space appropriate for IT businesses and all related city amenities such as residential, schools, cultural spaces and hotels.
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