Feasibility Study Kisumu and Mombasa Commuter Rail Systems

Alternative urban transport system Mombasa and Kisumu
To address congestion and road safety concerns of daily commuters the Kenya Railways Corporation (KRC) asked the Poyry-led consortium to assess the technical, environmental, financial and socio-economic feasibility and viability of the development of alternative urban transport systems in the two majors cities of Mombasa (main harbour of Kenya) and Kisumu on the banks of Lake Victoria. This has been an interesting assignment for us. East Africa as a region and Kenya as a country in that region harbour enormous infrastructure challenges. We see growing momentum from authorities’ efforts to address these challenges through innovate procurement and contracting. In the case of this assignment, Rebel focused on an assessment of financial viability, identifying the financing (viability) gap and potential strategies to further support project implementation.

Rebel provides financial long term vision
One of the main goals was to clearly identify what resources are necessary for KRC to implement these projects, where the private sector could contribute, and any budgetary impacts implied by their implementation. Instead of providing a simple financial assessment, we developed a financial strategy, determined the funding gap and devised long term financing strategies for KRC to support the implementation of the two projects.

But stays critical towards the proposed PPP structure
Our particular added value in this assignment has been to approach financial analysis from a budgetary angle, and to identify which instruments are most appropriate for the implementation of the various stages of each project. We have also identified how PPP solutions could be relevant to both projects, not as political buzzwords but in terms of efficiency and value creation. This project is a good example of how public transport infrastructure is critical to the improvement of the quality of life of people living in densely populated urban areas. Private sector involvement in such infrastructure can bring about significant efficiencies and value creation, but should always be considered with due reflection on its implied costs and risks to public authorities. 

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