The construction sector in Kenya is driven by multiple factors linked to urbanization and industrial development including, but not limited to, increased real-estate demand for residential housing, commercial real estate and industrial buildings as well as large-scale infrastructure projects such as roads. The housing sector is one of the demand drivers for construction materials. The Government of Kenya (GoK)’s Bottom-Up Economic Transformation Agenda BETA (2022) has committed to deliver 250,000 Affordable Housing units annually by structuring affordable long-term housing finance scheme.

The construction sector generates GHG emissions that contribute significantly to global warming and CO2 emissions from building operations and construction reached a new high in 2022, making up 37% of total global CO2 emissions. The construction sector in Kenya has been making a deliberate transition to sustainable development to align to the 2023 Climate Change Act and the Africa Green Industrialization Initiative. The transition strategy for this sector as outlined by GoK involves the adoption of green building standards that effectively address environmental, social and economic concerns in sustainable building. In response to the 2023 Climate Change Act and the Africa Green Industrialization Initiative, which identify green construction as a priority, the construction sector in Kenya is also making a deliberate transition to sustainable development to address climate change concerns.

Government of Kenya is committed to promote the local manufacturing of construction materials as part of its strategy to generate jobs, substitute imports, and generate export revenue. Low carbon construction materials are critical to significantly reducing greenhouse gas emissions associated with production as well as construction, contributing to climate change mitigation. However, a comprehensive data on the demand and supply dynamics to promote local manufacturing of construction materials in general and low carbon construction materials in particular remains limited in Kenya.

A.      OBJECTIVE OF THE ASSIGNMENT

This assessment is expected to look at the demand-supply analysis for local manufacturing of construction materials in general and low carbon construction materials in particular, with clear investment opportunities identification and sizing across each construction material categories, benchmarking analysis on key drivers and barriers for private sector investment and market-enabling regulatory reform recommendations.  

B.      SCOPE OF WORK

The market assessment and investment mapping for low carbon construction materials will be conducted through desk review, site visits and stakeholder consultations. This exercise will include the following key components:

Activity 1: Demand and supply assessment

1.1.            Assess the market demand and supply projections for construction materials (i) in general and (ii) for low carbon (green) construction materials. The projections should be for the next five to ten years, covering the different construction subsectors:

a)      By type of materials e.g. cement, glass, wood, steel, polymers and plastics, and paints and adhesives.

b)      By type of structure e.g. residential, commercial, industrial, large infrastructure/civil works.

c)      By stage of construction e.g. foundation materials, structural framework materials, walling materials, roofing materials, flooring materials, insulation and water proofing materials, electrical materials, and finishing materials.

1.2.            Quantify the market supply gap for the different construction materials in the (i) general and (ii) low carbon (green) construction materials across the different construction sub-sectors.

1.3.            Map the key players construction materials in general and low carbon (green) construction materials sectors, including manufacturers, importers, suppliers, distributors, construction companies, and developers.

1.4.            Assess the drivers and barriers to the supply and demand (adoption) of low carbon construction materials among manufacturers, suppliers and consumers. The assessment should cover the following, among others, policy, regulatory, institutional, economic, technical and behavioral factors.

Activity 2: Identification of Investment opportunities in the next 3-5 years  

2.1.            Map and quantify the investment opportunities for local manufacturing of construction materials – identifying categories of construction materials which present viable opportunity and competitiveness for local sourcing and regional export. Provide quantitative assessment of the investment opportunity to meet local demand and potential for export.   

2.2.            Identify and assess the low carbon pathways options available to Kenya – including new pathways/opportunities as well as potential scaling of pathways/opportunities tried and tested as pilots.

2.3.            Identify and map potential investors (private operators) with potential to invest in low carbon construction materials in Kenya including existing investors with potential to transition/expand into low carbon construction materials manufacturing as well as new investors (for instance global/regional suppliers) that can be attracted to invest in Kenya. 

Activity 3: Benchmarking assessment

3.1.            Benchmark competitiveness (price, quality, reliability of supply chain) of Kenya with regional peers and global suppliers for local manufacturing of (i) general and (ii) green construction materials for specific products.

3.2.            Assess Kenya’s comparative advantage in the construction (i) general and (ii) green construction materials for the different products.

Activity 4: Transition roadmap and market-enabling regulatory reforms recommendation  

4.1.            Develop roadmap/transition options for Kenya to support the production low carbon (green) construction materials.

4.2.            Demonstrate the business case (jobs to be created, value-added and linkages, potential forex savings from import substitution and climate benefits, among other benefits) to justify why Kenya must transition to locally manufacture green construction materials.

4.3.            Provide recommendations for market-enabling policy, regulatory and institutional reforms including investment policy support to promote the development of low carbon construction materials. These recommendations should be categorized as short-term, medium-term or long-term.

C.     DELIVERABLES

1.      Inception report outlining methodology, stakeholder list, and work plan.

2.      Draft Report covering the Activity 1 and 2, and a validation workshop (demand and supply assessment and identification of investment opportunities in construction of green construction materials).

3.      Draft Report covering the Activity 3 and 4, and a validation workshop (benchmarking assessment, transition roadmap and market-enabling regulatory reforms).

4.      Final market assessment and investment mapping report (including annexes with references and accompanying raw data file/ database).

SELECTION OF CONSULTING FIRMS BY THE WORLD BANK GROUP

REQUEST FOR EXPRESSION OF INTEREST (EOI)

Electronic Submissions through WBGeProcure RFx Now

ASSIGNMENT OVERVIEW

Assignment Title: MARKET ASSESSMENT AND INVESTMENT MAPPING FOR LOW CARBON CONSTRUCTION MATERIALS IN KENYA

Assignment Countries:

• Kenya

ASSIGNMENT DESCRIPTION

The construction sector in Kenyais driven by multiple factors linked to urbanization and industrial developmentincluding, but not limited to, increased real-estate demand for residentialhousing, commercial real estate and industrial buildings as well as large-scaleinfrastructure projects such as roads. The housing sector is one of the demanddrivers for construction materials. The Government of Kenya (GoK)’s Bottom-UpEconomic Transformation Agenda BETA (2022) has committed to deliver 250,000Affordable Housing units annually by structuring affordable long-term housingfinance scheme.

The construction sector generatesGHG emissions that contribute significantly to global warming and CO2 emissionsfrom building operations and construction reached a new high in 2022, making up37% of total global CO2 emissions. The construction sector in Kenya has beenmaking a deliberate transition to sustainable development to align to the 2023Climate Change Act and the Africa Green Industrialization Initiative. Thetransition strategy for this sector as outlined by GoK involves the adoption ofgreen building standards that effectively address environmental, social andeconomic concerns in sustainable building. In response to the 2023 ClimateChange Act and the Africa Green Industrialization Initiative, which identifygreen construction as a priority, the construction sector in Kenya is alsomaking a deliberate transition to sustainable development to address climatechange concerns.

Government of Kenya is committedto promote the local manufacturing of construction materials as part of itsstrategy to generate jobs, substitute imports, and generate export revenue. Lowcarbon construction materials are critical to significantly reducing greenhousegas emissions associated with production as well as construction, contributingto climate change mitigation. However, a comprehensive data on the demand andsupply dynamics to promote local manufacturing of construction materials ingeneral and low carbon construction materials in particular remains limited inKenya.

A.OBJECTIVE OF THE ASSIGNMENT

This assessment is expected to lookat the demand-supply analysis for local manufacturing of construction materials in general andlow carbon construction materials in particular, with clear investmentopportunities identification and sizing across each construction material categories,benchmarking analysis on key drivers and barriers for private sector investmentand market-enabling regulatoryreform recommendations.

B.SCOPE OF WORK

The market assessment and investmentmapping for low carbon construction materials will beconducted through desk review, site visits and stakeholder consultations. Thisexercise will include thefollowing key components:

Activity 1: Demand and supplyassessment

1.1.Assessthe market demand and supply projections for construction materials (i) ingeneral and (ii) for low carbon (green) construction materials. The projectionsshould be for the next five to ten years, covering the different constructionsubsectors:

a)Bytype of materials e.g. cement, glass, wood, steel, polymers and plastics, and paintsand adhesives.

b)Bytype of structure e.g. residential, commercial, industrial, largeinfrastructure/civil works.

c)Bystage of construction e.g. foundation materials, structural frameworkmaterials, walling materials, roofing materials, flooring materials, insulationand water proofing materials, electrical materials, and finishing materials.

1.2.Quantifythe market supply gap for the different construction materials in the (i)general and (ii) low carbon (green) construction materials across the differentconstruction sub-sectors.

1.3.Mapthe key players construction materials in general and low carbon (green)construction materials sectors,including manufacturers,importers, suppliers, distributors, construction companies, and developers.

1.4.Assessthe drivers and barriers to the supply and demand (adoption) of low carbonconstruction materials among manufacturers, suppliers and consumers. Theassessment should cover the following, among others, policy, regulatory,institutional, economic, technical and behavioral factors.

Activity 2: Identification of Investmentopportunities in the next 3-5 years

2.1.Mapand quantify the investment opportunities for local manufacturing ofconstruction materials – identifying categories of construction materials whichpresent viable opportunity and competitiveness for local sourcing and regionalexport. Provide quantitative assessment of the investment opportunity to meetlocal demand and potential for export.

2.2.Identifyand assess the low carbon pathways options available to Kenya – including newpathways/opportunities as well as potential scaling of pathways/opportunitiestried and tested as pilots.

2.3.Identifyand map potential investors (private operators) with potential to invest in lowcarbon construction materials in Kenya including existing investors withpotential to transition/expand into low carbon construction materialsmanufacturing as well as new investors (for instance global/regional suppliers)that can be attracted to invest in Kenya.

Activity 3: Benchmarking assessment

3.1.Benchmarkcompetitiveness (price, quality, reliability of supply chain) of Kenya withregional peers and global suppliers for local manufacturing of (i) general and(ii) green construction materials for specific products.

3.2.AssessKenya’s comparative advantage in the construction (i) general and (ii) green constructionmaterials for the different products.

Activity 4: Transition roadmap and market-enablingregulatory reforms recommendation

4.1.Developroadmap/transition options for Kenya to support the production low carbon (green)construction materials.

4.2.Demonstratethe business case (jobs to be created, value-added and linkages, potentialforex savings from import substitution and climate benefits, among otherbenefits) to justify why Kenya must transition to locally manufacture greenconstruction materials.

4.3.Providerecommendations for market-enabling policy, regulatory and institutionalreforms including investment policy support to promote the development of lowcarbon construction materials. These recommendations should be categorized asshort-term, medium-term or long-term.

C.DELIVERABLES

1.Inception report outlining methodology,stakeholder list, and work plan.

2.Draft Report covering the Activity 1 and 2, anda validation workshop (demand and supply assessment and identification of investmentopportunities in construction of green construction materials).

3.Draft Report covering the Activity 3 and 4, anda validation workshop (benchmarking assessment, transition roadmap andmarket-enabling regulatory reforms).

4.Final market assessment and investment mappingreport (including annexes with references and accompanying raw data file/database).

FUNDING SOURCE

The World Bank Group intends to finance the assignment / services described below under the following:

• BB: Bank Budget
• TF0A6923: IFC

ELIGIBILITY

Eligibility restrictions apply:

• [Please type list of restrictions]

SUBMISSION REQUIREMENTS

The World Bank Group invites eligible firms to indicate their interest in providing the services. Interested firms must provide information indicating that they are qualified to perform the services (brochures, description of similar assignments, experience in similar conditions, availability of appropriate skills among staff, etc. for firms; CV and cover letter for individuals). Please note that the total size of all attachments should be less than 5MB. Firms may associate to enhance their qualifications unless otherwise stated in the solicitation documents. Where a group of firms associate to submit an EOI, they must indicate which is the lead firm. If shortlisted, the firm identified in the EOI as the lead firm will be invited to the request for proposal (RFP) phase.

Expressions of Interest should be submitted, in English, electronically through WBGeProcure RFx Now

NOTES

Following this invitation for EOI, a shortlist of qualified firms will be formally invited to submit proposals. Shortlisting and selection will be subject to the availability of funding.

Only those firms which have been shortlisted will be invited to participate in the RFP phase. No notification or debrief will be provided to firms which have not been shortlisted.

If you encounter technical difficulties while uploading documents, please send an e-mail to the Help Desk at corporateprocurement@worldbank.org prior to the submission deadline.