IFU - Investeringsfonden for Udviklingslande

Danida Sustainable Infrastructure Finance (DSIF) provides funding for Thika and Githunguri Water Supply and Sanitation Project in Kenya.

The consultancy assignment for design and supervision as well as the works contract are tendered to Danish Companies or Joint Ventures with a Danish lead. Sub-consultants, sub-contractors and suppliers of equipment may participate in the project by teaming up with the tenderers.

The timeline for further project development is:

The timeline will be updated as project development progresses.

 ”Kenya is already feeling the impact of a changing climate – and we are keenly aware of the need to increase efficiency of our resource use. This includes reducing water waste, increasing energy efficiency and using renewable energy sources. Danish products are well known in Kenya for their high quality. As an example, Grundfos pumps are widely used – and with the strong after-sale service, these pumps continue to be highly efficient for many years.”… Bonnie Nyandwaro, Manager, Water Works Infrastructure Development, Athi Water Works Development Agency (AWWDA)

 Inspection of water works in Thika: From the left – Manager for Water Works Infrastructure Development, AWWDA,  Bonnie Nyandwaro, Managing Director, THIWASCO, Moses Kweri Kinya, and Chief Manager for Technical Services, THIWASCO, Kennedy Kiomo.

Status of Thika and Githunguri Water Supply and Sanitation Projects:
Athi Water Works Development Agency (AWWDA) is in the process of evaluating bids for design and supervision. The procurement process is expected to be finalised in March/April 2022.

Subsequently, the consultant will prepare design and tender documents and provide support to ATHI for procurement of the works contract. During the early stages of the design phase, ATHI in collaboration with the two water companies (THIWASCO and GIWASCO) will invite the potential Danish contractors to discuss:

• Procurement with specific focus on life cycle costing and project sustainability.
• Design of technical solutions and systems appropriate to local conditions.
• Contract issues and risks to be adressed in order to enable the contractor to provide international competitive prices.

”Currently, THIWASCO is ranked as the fourth most efficient water company in Kenya. Our goal is to become the best. This will require that we deliver affordable and high-quality water to all inThika – a challenge with the rapidly growing population and new industrial establishments along the recently completed highway from Nairobi. This will require that we increase our resource efficiency, e.g. by generating renewable energy and reducing water waste. To meet our ambitions, we need to sharpen our focus on system-wide solutions and improve our organisational efficiency. From my visit to Denmark, I learnt that ”the wastewater treatment plant of the future produces more energy than it uses” (Billund BioRefinery) and I look forward to working closely with Danish water companies to start the operations of biogas plants in Thika. We have strong focus on quality, and we regularly test our equipment, e.g. water meters – and we experience large differences in quality and accuracy between different suppliers. Therefore, we will focus on technical specifications to ensure that the right technology (of high quality) is delivered – with specific focus on costs of operation and maintenance.” … Moses Kweri Kinya, Managing Director, THIWASCO.

At the water intake in Thika: Managing Director for THIWASCO Moses Kweri Kinya and Investment Director, DSIF/IFU Annelise Boysen

Project background:
The Thika and Githunguri Water Supply and Sanitation Project has been approved by the Danish Minister for Development Cooperation and will be financed by a subsidised loan through Danida Sustainable Infrastructure Finance. The contract sum for works is expected to be in the range of one billion Danish Kroner. The loan has a 35% grant element. There will be one contractor (and one loan) for the projects which cover two separate water utilities.

The project outputs are:

1. New water supply systems in Thika and Githunguri Towns.
2. New sewage treatment systems in Thika and Githunguri Towns.
3. Water and sanitation services for informal settlements in Thika Town
4. Biogas and electricity generation unit at Thika Wastewater Treatment Plant North, mini-hydropower plant at Thika, and solar power plants in both Thika and Githunguri.
5. Creation of temporary and permanent jobs
6. Strengthened capacity to manage the new facilities and water/sanitation provision in Thika and Githunguri

In addition to rehabilitation and construction of new plants, the project will include substantial collaboration with Danish experts and water utilities to improve institutional capacity. This will be tendered to Danish companies and it will be a requirement to include Danish experience with operation of renewable energy plants. This support is currently being elaborated with expected contract start in the second half of 2022.

The two water utilities, THIWASCO and GIWASCO, differ substantially in size and have different development priorities. A more detailed status will be provided in a forthcoming update of the project in Kenya.

The project outcomes are:

1. 253,000 people in Thika Town and 31,000 in Githunguri Town have improved access to clean and affordable water.
2. 331,000 people in Thika Town and 29,000 in Githunguri Town are connected to piped sewerage.
3. More sustainable operation of the systems, including demonstration of the potential savings from using renewable energy for water treatment, pumping and wastewater treatment.
4. Creation of 3-400 temporary and permanent jobs