Chinese SGR firm offered Sh2.5bn Nairobi rail deal

The Chinese firm that built the multi-billion-shilling Standard Gauge Railway (SGR) is set to clinch a Sh2.5 billion contract to refurbish the Nairobi commuter railway network in a single-sourced deal tabled before the Cabinet.

Transport Secretary James Macharia wants the Cabinet to approve the hiring of China Road and Bridge Corporation (CRBC) without subjecting it to competitive bidding, citing a lack of local firms "with required capacity to undertake the works".

Mr Macharia wrote to the Cabinet in December last year seeking leeway to have CRBC undertake the works, which include the upgrading of railway stations and ballasting of the rail network in the first phase of the track rehabilitation.

“The purpose of this Cabinet memorandum is to seek concurrence of the Cabinet to engage China Road and Bridge Corporation (CRBC) to undertake infrastructure works since we do not have local firms with the required capacity to undertake the works whereas CRBC have the adequate technical capacity, pre-requisite railway experience and ability to mobilise immediately,” wrote Mr Macharia.

Lay ground

The refurbishment is intended to lay the ground for the anticipated shipping in of Sh1.5 billion second-hand diesel locomotives that the government is importing from Spain to be deployed on the Nairobi commuter rail network.

The current commuter rail network is so dilapidated that the average speed on some sections is as low as 15 kilometres per hour due to broken rails, unstable tracks and insufficient ballast.

Track rehabilitation works are expected to increase the speed at some sections to the original design of up to 60kph.

CRBC declined to comment on the deal, referring us to Kenya Railways, which had also not responded to queries on details of the contract by the time of filing the story.

A section of the Kenya Railways management is said to have preferred open tendering for the upgrade contract, arguing that the rehabilitation of railway stations could have been done by Kenyan firms.

Some Kenya Railways officials had also pushed for an open tender for a local firm to do at least part of the works like ballasting, which is budgeted at Sh200 million.

The Chinese railway builder, however, appears set to get the entire deal, according to people familiar with the matter.

Sh10bn fund

The track repair contract is part of the Sh10 billion fund set aside to ease Nairobi’s traffic congestion through rehabilitation of the commuter rail and introduction of a bus rapid transit system.

The city rail commute upgrade will see 11 second-hand locomotives imported from Spain as well as 20 halts and mini stations refurbished. It will also lead to the rehabilitation of the Kitengela Railway Station, which has been inoperational.

The Ruiru, Kikuyu, Syokimau and Embakasi lines will also undergo some upgrades expected to cost between Sh100 million to Sh270 million.

The Nairobi Central Station will receive a Sh600 million facelift, according to the plan.

The rehabilitation will also involve repair of drainage systems. The trains washing bay is expected to cost Sh100 million.

In the second phase of the upgrade, whose details or timelines have not been made public yet, track rehabilitation alone is set to consume Sh10.4 billion.

Ease mass transport

If implemented successfully, the plan could ease mass transport in Nairobi as it will serve areas of the city with high population density. It could also lead to a drop in fares, which will come as a relief for low and middle-income workers.

Last year, Kenya Railways initiated a study to develop a masterplan for commuter rail within the Nairobi Metropolitan region funded by the government through credit from the World Bank.

Several global firms; Dar Al-Handasah Consultants (Shair & Partners), GPO and R&H -- all members of the Dar Group -- in association with the local consultants, ITEC Engineering Ltd, and Design Source, commenced the study on September 25, 2017. They gave their recommendations a year later.

The consultants blamed the dilapidated railway network for the slow speeds of commuter trains. They also singled out the poor boarding platforms for the low attractiveness of the trains as a means of mass transport.

“The commuter rail system is unable to take advantage of the slow travel speeds for the other transport modes. It has been estimated that commuter rail is only responsible for carrying one percent of city passenger traffic during the peak hours,” the consultants wrote in their August 2018 report.

Fare evasion

The commuter trains are also prone to fare evasion since most of the boarding and alighting take place outside designated stations, a loophole that the upgrade is meant to seal.

The plan that would be implemented in six to 12 months will also include the purchase of spare parts for the existing locomotives and the creation of a passing loop at Imara Daima.

The Nairobi commuter rail service was introduced in 1992 as an added service to the long-distance passenger services. The 65-kilometre tracks have deteriorated over time due to poor maintenance.