Master Developer for

Konza Technology City

Presentation to: Institutional Investors Africa
Investment Conference

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Policy Objectives

§ICTs
Infrastructure and Universal Access to
§Content and Applications
§Strategic Partnerships
§Poverty Reduction/Employment Creation
§Human Capacity Development
§Improved Governance

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Project Profile

§Konza is envisioned to be an exemplar mixed

development technology city developed on a Greenfield
Project site 60 kms from Nairobi on the major Mombasa Nairobi
Highway.
Profile
§Phased development over 20 years with the BPO Park
taking up 23% of the planned 6M square feet of floor
space.

§Create 200,000 jobs over in BPO, IT ITES and related

sectors in 20 years.
Economic
Benefits
§World class infrastructure and technology to facilitate
research, education and business.
§Kenya attains vision as leading ICT nation in Africa.

§Mixed urban development and best in class

residential and working environment.
Social
Benefits §Enhance local research and development and
entrepreneurship and IT enterprise formation
culture.

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Sponsor Profile
nImplementation agency of the Ministry of
Information and Communications.
nUndertaking the Kenya Transparency and
Infrastructure Project worth $116M in
Kenya ICT Board connectivity, government digitization and rural
inclusion.
nInternationalMarketing & local sector
development for IT, ITES development ,
investment facilitation, incubation, standards.
n

nGovernment Ministry leading the Inter-ministerial

Ministry of n co-ordination on the Konza City Project.
Information of nPolicy and project initiation of major IT projects
Communication
including undersea and national connectivity,
National ICT Masterplan and Konza City.

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Broadband Infrastructure Investment
USD 200M

Kenya National Fiber Optic Teams Undersea Cable

Network Completed 2009 Mombasa - Fujaira Completed
2009
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 Increased Investment in Government IT
80+ technology-enabled projects worth over USD 0.5 billion are in progress or


are planned for delivery across 39 Ministries.

2009 2010 2011 2012 2013 2014 2015
Project Ministry
Total: SX Billion
Digitalization

National Lands Information Management System Lands USD 50 million

High Court Registry- digitization & Application Judiciary TBD (in progress)
Digitization of Company Registry Files State Law
USD 2.2 million (in progress)

Kenya Government Email – Lotus Notes E-Government USD 26.2 million

Education Management Information System Education
Total: S14.8 Billion

(EMIS) USD 12.6 million

Applications

Integrated Financial Management Information Finance

USD 8.4 million
System (IFMIS)
Integrated Personnel & Payroll Database (IPPD) Public Service
USD 12.5 million
All Other Application Initiatives: Develop database Various
management and ministry-specific processes USD 112 million

USD 106 million

KENET – Capacity purchase for Universities Education
Total: S17.0 Billion
Infrastructure

Government Data Center (GDC) E-Government USD 35 million (continuous)

Government Common Core Network (GCCN) E-Government USD 12.5 million

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Bandwidth to E-Government Network InfoComm USD 15.6 million
All Other Infrastructure projects Various
USD 43.6 million

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The Project

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Overview: Konza Project Team

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The Process

Transactio
n
Structure :
•Government
•Master
Developer

Vision 2030

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Overview Site Location
§Site sits on 5,000 acres
§
§60 km from Nairobi on
the main highway

§Only 50 km from Jomo

Kenyatta International
Airport

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Konza Technology City

In v

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Konza Technology City

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World Class Design

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Four 5-year Phases of Investment

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20 Year Development in 4 Equal Phases

Phase 1 2 3 4 Total  

Infrastructure 1,000 400 600 150 2,150  

(Total) USD 000  
             
Development 1,300 1,300 1,500 800 4,900  
(Total): USD 000  
Broken Down:           %
BPO Park 200 300 400 450 1,350 28
Residential 975 850 700 250 2,775 57
Financial District 125 100 300   525 11
University   50     50 1
Science Park     100 100 200 4
             
Total 2,300 1,700 2,100 950 7,050  
% 33 24 30 13 100  

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 Floor Space Development Costs
Status Development % Space Floor Space %
Investment (000 SQM) Space
(USD 000)

BPO Park Master Developer and 1,350 28 1,400 23

Anchor Tenant

Residential Master Developer 2,775 57 3,600 60

Financial District Master Developer 525 11 699 12

University Local Commitment 50 1 51 1

Science Park USD 85m Indicative 200 4 226 4

Commitment

Total  4,900 100 5,976

100

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Investment Summary

 Infrastructure development $ 2.1 B

§ On-site $ 1.9 B
§ Off-site $ 200 M


 Site real estate development $ 4.9 B



 Total project cost $ 7.0 B



 Average expected return - based on real estate market in Kenya:

§ 12 -15% per annum for lease income

§ 20% capital gains per annum (straight line)


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 Investor Participation Models

1.Single Private Master Developer undertakes the master planning of

the entire property under Master Development Agreement and
finances its development directly or through sub-developers.
Government finances backbone infrastructure fully or partially.

2.Government Authority finances backbone infrastructure and

undertakes the master planning of the property, including
attracting developers for specific land uses.
3.
4.Government contributes land to an SPV to be established jointly with
private Master Developer. Terms and responsibilities of each
party to be determined.

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•
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 THANK YOU


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