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The government in Gauteng is now offering an alternative improved Reconstruction and Development Programme (RDP) housing plan to its residents. This new approach will help boost the property market in the province and also meet people’s needs that are beyond just owning a home.
Lee Mhlongo‚ Chief Executive of First National Bank housing‚ confirmed the reports and said that the provincial government’s mega housing initiative was a boon for the property market. However, Premier David Makhura’s administration had decided to stop small RDP projects because‚ as with township development during apartheid‚ most of these projects are on the periphery of cities‚ far from people’s place of work.
The housing development initiative
The housing development initiative will be implemented at a huge scale which will effectively wipe out apartheid spatial design. There will be creation of new cities and an addition to topping up housing in areas that are already developed.
This implementation barely comes a month after Makhura and Gauteng MEC of human settlements Paul Mashatile launched a housing project in the Rand West Municipality. The housing project will yield 13‚000 units including social housing‚ bonded houses‚ walk-up RDP flats and military veterans’ houses.
Also, a new city will be constructed in Ekurhuleni known as the John Dube City mega project. It will create more than 10‚000 homes and additionally have a civic centre‚ seven primary schools‚ three secondary schools‚ a regional hospital and two transport facilities.
The benefit of having these settlements is that they provide Gauteng with a platform to reinvent itself and have inclusive growth.

Source: Construction review

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The Northern Water Collector Tunnel will increase the water supply to Nairobi by 140m litres; this according to the Nairobi Governor Mike Mbuvi Sonko. The construction of the US $65.28m tunnel will reach completion next year.
Gov. Sonko said this will boost water supply to the county which receives 520m litres against a demand of 750m litres. According to him, the meeting proved successful. This is in a bid to seek for a lasting and permanent solution to the water problem in Nairobi.
Some of the officials present at the meeting include the Cabinet Secretary for Water and Irrigation Eugene Wamalwa and Nairobi and Water Sewerage Company Chief Executive Engineer Nahashon Munguna. The Athi Water Chief Executive Engineer Michael Thuita as well as Nairobi County Executive Committee for Finance Veska Kangongo were also present. Acting County Secretary Leboo ole Morintat also sat through the successful meeting.


Water supply
According to the Governor, an additional 100m litres or more will be supplied to the city through the construction and completion of Karimeni 2 and Ruiru 2 dams. The Northern Water Collector tunnel is also in line with Vision 2030 to ensure improvement on water services in Nairobi, Kiambu and Muranga Counties.
Karimenu II Dam will have a daily capacity of 76,000 cubic metres. It will also sustain demand for areas like Kiambu, Juja, Ruiru, and the Export Processing Zones.
The completion of the dam will ease pressure on Ndakaini, Sasumua, and Ruiru dams. The three supply fresh water to Nairobi and its environs. Sonko also said he will partner with the Water and Irrigation Ministry. The partnership will aid in drilling at least one borehole in every ward in Nairobi. They agreed to request the National Government through the Equalization Fund to subsidize water. This will help citizens from the informal sector within Nairobi access water.

Source: Construction review

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Rwanda’s energy rollout efforts received a boost following the operationalization of US $50m to catalyze the private sector’s investment in off-grid energy solutions.
The fund is managed by the World Bank and rolled out through the Development Bank of Rwanda. It is going to facilitate the electrification of about 445,000 households in the next seven years.
When achieved, this will increase electricity access in the country by about 19 per cent. The current energy access rate stands at about 40 per cent. A section of the funds will avail credit facilities to mini-grids and developers in the sector.
This intervention comes after local players in the renewable energy sector had come out seeking financing to meet national targets.
The fund will also allow a section of SACCOs, commercial and micro-finance institutions provide affordable loans to their clients to purchase certified solar systems.


Financial accessibility
According to Dr Livingstone Byamungu, the chief investment officer at BRD, the main objective of the fund is to increase affordability. It will also reduce access to finance challenges in partnership with SACCOS, commercial and micro-finance banks and mini-grid developers.
The financial institutions will be able to access direct credit. This also includes credit lines that they will, in turn, avail to households, micro-enterprises and small and medium enterprises.
The target beneficiaries are households and businesses. Its main objective is to replace the use of Kerosine, diesel and dry cell batteries.
The fund will support Tier 1 off-grid solutions that provide a basic service level such as lighting, radio and cell phone charging.
In conclusion, mini-grid developers can also get resources directly from BRD.

Source: Construction review


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Construction work has commenced on Africa’s tallest building in Kenya. This is after His Excellency; the President of Kenya laid the foundation stone recently.
The 70-floor mixed-use twin tower development dubbed Pinnacle Towers is located in Nairobi’s Upperhill area and will cost a whopping US$ 194m for it to be complete.
It will encompass a 45-floor Hilton hotel that is being developed by Hass Petroleum and White Lotus Group and at 900 feet; the building will have the highest viewing deck in Africa.
There will also be 200 residential houses ran by Hilton Hotel that will include one bedroom, two bedrooms, and three bedroom fully furnished luxury apartments.
“Pinnacle Towers will also have a helipad at over 800 feet, making it the highest on the continent. We thought it wise to put the helipad here so that people can fly directly to the hotel and beat Nairobi’s hectic traffic,” Hass Petroleum Executive Chair, East and Central Africa Abdinasir A. Hassan said during the laying of the foundation.
To this point, the developers have spent US$ 14m in the construction of the foundation and preparation stage. The total cost will be fully funded through equity and debt.
Pinnacle Towers will be among the tallest buildings in the world with Dubai’s Burj Khalifa being the tallest currently at 800M, Malaysia’s Petronas Towers stands at about 400M which compares well with The Pinnacle’s 300M.
The mega development is projected to be complete by December 2019, although the 255-room hotel may be completed earlier.
White Lotus Group is an American vertically integrated Real Estate Development Firm which optimizes design, financing, implementation, delivery, and operation of complex or re-purposed real estate assets.

Source: Construction review

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Kenya is eyeing to construct a brand new road between Mombasa and Nairobi instead of expanding the existing highway. Without upgrading the current road into an expressway, the government has decided to construct a completely new six-lane expressway to run side by side with the existing one.
Traveling options
In another three years, a Kenyan traveling from Mombasa to Nairobi will have at least four major options. If one chooses the Standard Gauge Railway (SGR), the train takes about five hours. In the case of taking a flight, they would land at the coastal town in an hour. However, when traveling by road, one will have the two roads to pick from.
The state-of-the art expressway will include 76 overpasses, 21 underpasses, 189 culverts and 20 interchanges. It will reduce the traveling duration in between the two cities to 3 and a half hours, plus the travelers will pass through 22 major towns which include: Emali, Mtito Andei, Voi, Mariakani among others; before reaching their destination.

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Construction of the US $30m road authorities office complex in Nairobi, Kenya is currently underway and is 40% complete; ready for occupation in September 2018.
Kenya National Highways Authority director-general Peter Munindia confirmed the reports and said that the project which is set to host employees of KeNHA, Kenya Rural Roads Authority, Kenya National Highways Authority, Kenya Urban Roads Authority, Kenya Roads Board and Engineers Board of Kenya.
“Several institutions have been established since the Kenya Roads Act was enacted in 2007. However, these institutions have been housed in private premises which, as public institutions, they are hard pressed to afford,” said Mr Munindia.
The World Bank in conjunction with the Kenya government is funding the construction of the mega project which is being developed by Chinese firm-Aviation Industry Corporation of China (AVIC).
The complex sits on a nine-acre piece of land in Embakasi near the Jomo Kenyatta International Airport (JKIA). It occupies a gross floor area of 35,000 square metres consisting of lower ground floors, suspended floors and a conference facility housing a 500-seater auditorium.
Construction began in March 2017.
About AVIC
(AVIC) is a Chinese state-owned aerospace and defense company, ranked 159th place in the Fortune Global 500 lists.
The company is centered on aviation and provides complete services to customers in many sectors – from research and development to operation, manufacturing and financing. Their business units cover defense, transport aircrafts, helicopters, avionics and systems, general aviation, research and development, flight testing, trade and logistics, assets management, finance services, engineering and construction, automobiles and more.

Source: Construction review

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The Tanzanian government has officially submitted its letter of approval for the Bagamoyo Special Economic Zone venture to China Merchants Port, agreeing and accepting the investor’s comprehensive project proposal.
According to Tanzanian Ambassador to China Mr Mbelwa Kairuki, the letter was submitted on behalf of the government, to the China Merchants Port Managing Director, Bai Jingtao, on the 10th of November, 2017.
According to Ambassador Kairuki , the letter from the Prime Minister’s Office was a reply to the investor’s project proposal after the approval by the Cabinet meeting.
“With the approval by the Cabinet meeting, the Tanzanian government formally agreed and accepted the comprehensive proposal submitted by the China Merchants Port and the Oman Sovereign Fund on March 31, this year,” said  Ambassador Kairuki.
Having submitted the letter, Mr Bai thanked Ambassador Kairuki for his personal visit to Shenzhen City in China – the headquarters of the company, and thanked the Tanzanian Government for its high attention and full support for the Bagamoyo project.
Government’s approval

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The preparation phase for the proposed road which will link Uganda and Tanzania through Masaka and Kumunazi respectively has just kicked off under the auspices of the East African Community.
The African Development Bank’s (AfDB) East Africa Regional Resource Centre (EARC), and the East African Community (EAC) have signed the Financing Agreement amounting to US $1.2m to finance the Project Preparation Phase of the three key Multinational Road Sections between Masaka in Uganda to Kumunazi in Tanzania.
On behalf of the EAC Community, the Secretary General of the East African Community, Ambassador Liberat Mfumukeko, signed the agreement, while Mr Gabriel Negatu, Director General of the African Development Bank – East Africa Regional Resource Centre (EARC), signed on behalf of African Development Bank.
Present at the projects’ signing ceremony were the EAC Deputy Secretary General in charge of Planning and Infrastructure, Engineer Steven Mlote, Counsel to the Community, Dr Anthony Kafumbe, Executive Secretary of Lake Victoria Basin Commission (LVBC), Dr Said Ali Matano and Executive Secretary of East African Health Research Commission (EAHRC), Prof Gibson Kibiki.
The key preparatory works
According to a statement from the EAC Secretariat, the key Multinational Road Sections covered under this Grant for preparatory works include, Masaka to Mutukula Section (89.5km) in Uganda, Mutukula to Kyaka Section (30km) in Tanzania as well as Bugene to Kasulo to Kumunazi Section (133km) also located in Tanzania.
Nevertheless, the EAC presented a list of 18 priority projects to be supported by the African Development Bank under its Regional Integration Strategy Paper (RISP) 2017-2021.
The community is also working towards tarmacking around 900km of the region’s road network per year, in the ongoing robust plans for the upgrading of over 30,000km of roads in the six member states to bitumen over the next 33 years. That is among the developmental milestones contained in the EAC Vision 2050, which entails improved road networks, cited to be critical for industrialization and the movement of both people and goods.
Additionally,the EAC Partner States have agreed on ten transit transport corridors which constitute EAC Road Network, including twelve feeder corridors. The Vision on Infrastructure under the Road Transport Sub sector will be achieved by developing the above EAC Corridors.
Meanwhile, it is envisioned that the level of service along the main transport corridors will have improved substantially (reaching Category B and A from the current average regional level of service of C, D and E) with enhanced safety.

Source: Construction review

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The reconstruction of the 35km Apapa-Oworonshoki expressway in Lagos, Nigeria is set to commence next week. This is according to chairman of Dangote Group, Aliko Dangote.
In September this year, The Federal Government asked the Dangote Group to rebuild the road in exchange for some tax credit.
Aliko Dangote has also confirmed that, the design has been handed over to his group and contractors will be selected after an ongoing bidding exercise is completed.
“The bidding process is going to go on where four, five contractors will bid, anybody that wins the contract we will fund the project under the agreement that we have,” said Dangote.
When questioned on the impacts of the reconstruction on users, Mr. Dangote preferred to speak on the benefits of the reconstruction.
“The government will be able to save a lot of money. Right now, the total loss to the economy is over US $28.2m daily,” he said.
“You have to understand that Apapa and Tin Can Island ports handle about 80% of the cargo that come into Nigeria. As we speak, some of our ships are waiting to come in from Lome and discharge.”
“It is not because we don’t have anywhere to birth the ship, but because all our operations are choked up because we have containers, general cargo that have actually been there and we are not able to remove,” he said.
Dangote is more worried about “smaller operators ” that have imported cargo and whose charges are accumulating everyday. Even so, as a result of that, transport charge has almost doubled for such importers.
However, the government has given directive for the ports to be decongested immediately. This is the right decision to take and assured that Nigerians will see a massive change by next week.
Road cost implication
On the cost implication of the road project, Mr. Dangote simply said they are still working on the cost implications of the road but he can guarantee it will be one of the cheapest roads to be built.
According to NPA head, Ms. Usman, clear directives have been received that all empty containers need to be taken to an holding bay, shipping companies can not have ports locations within the ports any more, so that will free a lot of traffic within the area.
Additionally, all tank farms owners are required to comply to the utilization of holding bays. No more approvals of tank farms will be permitted within the Apapa area any longer.
Nigeria government has received the full commitment of Mr. Dangote to complete the reconstruction of Apapa Oworonshoki road by June 2018.

Source: Construction review

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Rehabilitation work on three more terminals at the Jomo Kenyatta International Airport (JKIA) in Kenya will begin by June 2018. On completion, the terminals capacity of the airport will be raised by an additional five million passengers.
Confirming the terminals capacity, Transport secretary James Macharia said that once revamped, the airport will be able to handle 12.5 million passengers a year.
Besides, the Kenya Airports Authority (KAA) has already completed the rehabilitation of terminal 1A, which is currently used by the Kenya Airways and its Sky Team Alliance partners.
“The detailed designs for the rehabilitation of the existing terminals 1B, 1C and 1D are expected to be completed in the next few months with actual construction work commencing by the end of the financial year,” added Macharia.
Additionally, the capacity and improvement of facilities at the airport will support the expected growth of traffic at the facility with the launch of direct flights to the US, which should begin by June next year.
Meanwhile, the Kenya government is in talks with the African Development Bank (AfDB) for financial support to construct a second runway at JKIA.
This is because, the capacity on the existing one is almost at 90%, which causes delays and flight cancellations whenever there are plane mishaps on the runway. KAA plans to start the work in the second half of next year, should the funds become available.
Terminal cost
In 2016, the authority had estimated that the new runway will cost US $358.7m. The proposed design calls for a 4,800m long and 75m wide runway, including the shoulders, enabling it to handle the largest airplanes in service such as the Airbus A380 and the Being 747-800. The existing runway is 60 metres wide and 4.2 kilometres long.
The new runway will also increase the movement of aircraft from 25 to 45 per hour.
Kenya’s aviation sector is currently contributing about 10% of GDP, through facilitation of trade, travel, investment and creation of jobs.
Kenya had earlier planned to put up a new terminal, dubbed the Greenfield Terminal, but the plans were scrapped due to financial pressure and the fact that upgrades to the existing facility were bringing in sufficient capacity.

Source: Construction review


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South Africa’s main freight operator Transnet is now ready and well positioned to spread its wings elsewhere on the continent.
Speaking at the just concluded African Rail Evolution summit and expo held in Durban, South Africa, the company’s group Chief Executive Siyabonga Gama said that the company is diversifying to the rest of Africa to address rising demand of logistics related services.
“We are at the point where we are diversifying from our South African base to go into some of the African countries,” he said.
Mr Gama expressed confidence that the firm’s technical competence that they have acquired over the years will be very instrumental as they explore new markets on the continent.

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