The World Bank Implementation Status & Results Report Kenya Infrastructure Finance/PPP project (P121019) Kenya Infrastructure Finance/PPP project (P121019) AFRICA | Kenya | Finance, Competitiveness and Innovation Global Practice | IBRD/IDA | Investment Project Financing | FY 2013 | Seq No: 13 | ARCHIVED on 12-Jun-2019 | ISR37359 | Implementing Agencies: MINISTRY OF FINANCE, National Treasury PPP Unit Key Dates Key Project Dates Bank Approval Date: 15-Nov-2012 Effectiveness Date: 11-Feb-2013 Planned Mid Term Review Date: 30-May-2015 Actual Mid-Term Review Date: 18-May-2015 Original Closing Date: 31-Dec-2016 Revised Closing Date: 31-Oct-2022 pdoTable Project Development Objectives Project Development Objective (from Project Appraisal Document) The overall objective of this two-phased Adaptable Lending Program (APL) Program is to increase private investment in the Kenya infrastructure market across sectors and to sustain this participation over an extended period of time. This involves three key areas of development: (i) enabling environment; (ii) pipeline; (iii) financing. The specific objective of the APL 1 project is to improve the enabling environment to generate a pipeline of bankable Public-Private Partnership (PPP) projects. Has the Project Development Objective been changed since Board Approval of the Project Objective? Yes Board Approved Revised Project Development Objective (If project is formally restructured) The overall objective of this project is to increase private investment in the Kenya infrastructure market across sectors and to sustain this participation over an extended period of time. Components Table Name Technical Support to PPP Institutions for PPP Legal, Regulatory and PPP Financing Environment:(Cost $11.50 M) Support for Preparation of Individual PPPs:(Cost $20.00 M) Improvements to Fiscal Risk Management Framework:(Cost $5.00 M) Support for Program Management:(Cost $3.50 M) AF Component 1: Support to Institutional Strengthening:(Cost $10.00 M) AF Component 2: Support to Project Preparation and Procurement:(Cost $37.00 M) AF Component 3: Support to Project Management:(Cost $3.00 M) Overall Ratings Name Previous Rating Current Rating Progress towards achievement of PDO Satisfactory Satisfactory Overall Implementation Progress (IP) Moderately Satisfactory Moderately Satisfactory Overall Risk Rating Moderate Moderate 6/12/2019 Page 1 of 7 The World Bank Implementation Status & Results Report Kenya Infrastructure Finance/PPP project (P121019) Implementation Status and Key Decisions Component 1 - Upstream support for PPP Institutions and Capacity Building The work plan under this component builds upon the work initiated or completed under the original credit and is based on an assessment of the remaining institutional strengthening and capacity enhancement requirements for future planned project related activities, including at the county government level. Sub-Component I.A: Upstream Support to PPP Institutions PPP Unit Staffing: 20 experts recruited with the support of the IFPPP credit will be joining the PPP Unit in July 2019. FCCL Management: Hand-holding support is being provided to the GOK under PPIAF TF support with a special FCCL mission having been concluded end of May 2019. Routine FCCL assessments are being carried out regularly for individual projects as provided under the FCCL Management Framework. Sub-Component I.B: Support to Capacity Building Activities: PPP Certification of Government Officials: 28 GOK officials have achieved PPP certification from recognized institutions so far as compared to 9 at the time of the last ISR I December 2018. Three weeks of Nairobi based training is scheduled over the next few months. It is expected that an additional 15 officials will attain certification by the time of the next ISR scheduled for December 2019 taking the total number of certified GOK officials to 43. Capacity building sessions for county officials: Hands on capacity building sessions were provided for county government officials. South-South Knowledge Exchange: The South-South Knowledge Exchange Facility has provided US $ 25000 for the purpose of a knowledge exchange between Kenya and Malaysia. A study tour will be organized for 5 GOK officials early during the next fiscal year. FCCL Study tours: Study tours will be organized to South Africa, Chile and Australia in order to study their FCCL management experience and frameworks. Training for petition committee members: Two petition committee members will be undergoing in-depth training in PPPs later this calendar year. Component 2 - Support for PPP Project Preparation and Procurement While transport, education, health and energy will continue to be sectors of focus for the national government, sectors of interest at county level appear to be water and sanitation, affordable housing, solid and medical waste management, health services, agriculture, etc. The table below presents a summary of the status of the PPP pipeline as at April 2019: Summary of status of PPP pipeline in Kenya No. of National No. of County Total No. of Projects per No Stage of PPP Project Government Projects Projects Stage 1 Financial Close (Construction Stage) 1 0 2 2 Commercial Close (PPP Contracts Signed) 6 0 5 3 Projects with approved contracts – to be signed shortly 3 0 3 4 Contract Negotiations (Contracts not yet signed) 10 0 10 4 Tender/Procurement 5 0 5 5 Ready for Tender 7 1 8 Feasibility Study Reports Completed, Pending CA 6 2 1 3 Submission for Approval 7 Feasibility Study Stage (Ongoing Studies) 4 1 5 8 Proposal Stage 14 7 21 9 Awaiting Guidance from CA 15 1 16 TOTAL 67 11 78 Moving Long Pending/ Stalled Projects: While there is notable progress on the pipeline, it will be important for the PPPU to take steps to speed up decisions on projects that have moved at a slower pace. Achievement of Disbursement Linked Indicators (DLIs): The current FYs DLIs include the following: baseline circular to county governments on PFF and FCCL Management Framework issued and at least 3 additional PFF funding agreements signed. Both of these are moving towards achievement at this time. 6/12/2019 Page 2 of 7 The World Bank Implementation Status & Results Report Kenya Infrastructure Finance/PPP project (P121019) Component 3 - Project Management This component will be used to continue supporting the PIU for provision of fiduciary, safeguards, and Monitoring and Evaluation (M&E) expertise to the Project in accordance with Bank policies and requirements. Risks Systematic Operations Risk-rating Tool Risk Category Rating at Approval Previous Rating Current Rating Political and Governance -- Moderate Moderate Macroeconomic -- Moderate Moderate Sector Strategies and Policies -- Moderate Moderate Technical Design of Project or Program -- Moderate Moderate Institutional Capacity for Implementation and Sustainability -- Moderate Moderate Fiduciary -- Moderate Substantial Environment and Social -- Substantial Substantial Stakeholders -- Moderate Moderate Other -- Moderate Moderate Overall -- Moderate Moderate Results PDO Indicators by Objectives / Outcomes Institutional Development and Regulatory Reform IN00709464 ►Regular issuance of Government benchmark bonds in medium and long term maturities up to 7/10 year tenures (Number, custom) (Yes/No, Custom) Baseline Actual (Previous) Actual (Current) End Target Value No Yes Yes Yes Date 31-Dec-2012 30-Nov-2018 03-Jun-2019 31-Dec-2017 IN00709612 ►PPP Regulations associated with the new Law agreed to with MoF (Yes/No, Custom) 6/12/2019 Page 3 of 7 The World Bank Implementation Status & Results Report Kenya Infrastructure Finance/PPP project (P121019) Baseline Actual (Previous) Actual (Current) End Target Value No Yes Yes Yes Date 31-Dec-2012 30-Nov-2018 03-Jun-2019 31-Dec-2017 IN00709614 ►Private Capital Mobilized (Amount(USD), Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 98,830,000.00 98,830,000.00 1,250,000,000.00 Date 18-Jan-2017 30-Nov-2018 03-Jun-2019 31-Oct-2022 Pipeline of PPP transactions IN00709465 ►No. of PPP Projects that reached financial close (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 1.00 1.00 3.00 Date 18-Jan-2017 30-Nov-2018 03-Jun-2019 31-Oct-2022 IN00709613 ►Expression of Interests (EOIs) issued to prospective sponsors for three targeted PPP transactions (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 15.00 17.00 3.00 Date 31-Dec-2012 30-Nov-2018 03-Jun-2019 31-Dec-2017 Improvement of FCCL framework IN00709611 ►PPP Fiscal Commitment and Contingent Liability Framework operationalized as measured by: upstream DMO due diligence on prospective (feasibility stage) transactions completed in line with Law (Yes/No, Custom) Baseline Actual (Previous) Actual (Current) End Target Value No Yes Yes Yes Date 31-Dec-2012 30-Nov-2018 03-Jun-2019 31-Dec-2017 Intermediate Results Indicators by Components Institutional Development and Regulatory Reform IN00709615 ►No. of Government officials with PPP certification from recognized institutions* (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target 6/12/2019 Page 4 of 7 The World Bank Implementation Status & Results Report Kenya Infrastructure Finance/PPP project (P121019) Value 10.00 10.00 28.00 50.00 Date 18-Jan-2017 30-Nov-2018 03-Jun-2019 31-Oct-2022 IN00709618 ►Line Ministries and Agencies ?Nodes? for First Mover Transactions established and operational (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 59.00 59.00 2.00 Date 31-Dec-2012 30-Nov-2018 03-Jun-2019 31-Dec-2017 Preparation of a pipeline of PPP transactions IN00709616 ►Report drafted on project stakeholder engagement survey (Yes/No, Custom) Baseline Actual (Previous) Actual (Current) End Target Value No No No Yes Date 18-Jan-2017 30-Nov-2018 03-Jun-2019 31-Oct-2022 Survey on project stakeholder engagement to be done at subproject level one year after achieving the first Comments: project financial close. IN00709619 ►No. of EOIs/RFQ/RFP issued to prospective PPP private partners (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 8.00 12.00 17.00 20.00 Date 18-Jan-2017 30-Nov-2018 03-Jun-2019 31-Oct-2022 IN00709620 ►No. of Feasibility Studies approved by the PPP Committee (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 10.00 22.00 22.00 25.00 Date 18-Jan-2017 30-Nov-2018 03-Jun-2019 31-Oct-2022 IN00709621 ►PPP Training Curriculum Developed and Implemented (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Curriculum developed and approved, Value No Curriculum None None implementation of curriculum commenced Date 18-Jan-2017 30-Nov-2018 03-Jun-2019 31-Oct-2022 Improvement of FCCL Framework IN00709617 6/12/2019 Page 5 of 7 The World Bank Implementation Status & Results Report Kenya Infrastructure Finance/PPP project (P121019) ►PPP FCCL approved by National Treasury Cabinet Secretary (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Value No Yes Yes Yes Date 31-Dec-2012 30-Nov-2018 03-Jun-2019 31-Dec-2017 Disbursement Linked Indicators IN00709622 ►DLI 1 PFF Regulations gazzeted (Date, Outcome, 1,000,000.00, 100.00%) Baseline Actual (Previous) Actual (Current) FY 18 Value 29-Jun-2018 12-May-2017 12-May-2017 -- Date -- 30-Nov-2018 30-May-2019 -- IN00709623 ►DLI 2 PFF governance and operations manual approved and implemented (Date, Output, 1,000,000.00, 100.00%) Baseline Actual (Previous) Actual (Current) FY 18 Value 29-Jun-2018 27-Jun-2018 27-Jun-2018 -- Date -- 30-Nov-2018 30-May-2019 -- IN00709624 ►DLI 3 PFF Seed money provided (Date, Output, 1,000,000.00, 100.00%) Baseline Actual (Previous) Actual (Current) FY 18 Value 29-Jun-2018 29-Jun-2018 29-Jun-2018 -- Date -- 30-Nov-2018 30-May-2019 -- IN00709625 ►DLI 4 At least 3 PFF Funding Agreements signed (Date, Output, 5,000,000.00, 0%) Baseline Actual (Previous) Actual (Current) FY 18 Value 29-Jun-2018 29-Jun-2018 29-Jun-2018 -- Date -- 30-Nov-2018 30-Nov-2018 -- Data on Financial Performance Disbursements (by loan) Project Loan/Credit/TF Status Currency Original Revised Cancelled Disbursed Undisbursed % Disbursed 6/12/2019 Page 6 of 7 The World Bank Implementation Status & Results Report Kenya Infrastructure Finance/PPP project (P121019) P121019 IDA-51570 Effective USD 40.00 40.00 0.00 32.53 4.61 88% P121019 IDA-61210 Effective USD 50.00 50.00 0.00 11.94 41.70 22% Key Dates (by loan) Project Loan/Credit/TF Status Approval Date Signing Date Effectiveness Date Orig. Closing Date Rev. Closing Date P121019 IDA-51570 Effective 15-Nov-2012 05-Dec-2012 11-Feb-2013 31-Dec-2016 31-Oct-2022 P121019 IDA-61210 Effective 05-Jul-2017 07-Aug-2017 21-Dec-2017 31-Oct-2022 31-Oct-2022 Cumulative Disbursements Restructuring History Level 2 Approved on 24-Jun-2015 ,Level 2 Approved on 25-Jan-2019 Related Project(s) P162182-Kenya Infrastructure Finance Public Private Partnership Additional Financing Project 6/12/2019 Page 7 of 7