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Project Information Memorandum | University of Embu Hostels Project

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UNIVERSITY OF EMBU HOSTELSPROJECT

PROJECT INFORMATION MEMORANDUM

NOVEMBER 2017

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NOVEMBER 2017

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NOVEMBER 2017

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FOREWARD by the VICE CHANCELLOR

University of Embu Hostels Project will be one of the majordevelopment efforts to be undertaken with support from theGovernment of Kenya at the University of Embu. It involves aproposal for the construction of modern student hostels bythe University.

In the development of the University of Embu Hostels Project,a number of stakeholders participated and these included theGovernment of Kenya, represented by the PPP Unit of theNational Treasury, the University and the community.

The Transaction Advisor guided the process through provision of expert advice. Thiscombined effort resulted in a detailed feasibility report that formed the contents of thismemorandum. With the completion of the memorandum process, the University will be in aposition to advertise the project with the aim of attracting potential investors.

Throughout the process, the University has worked closely with the Transaction Advisor toconduct due diligence to ensure that the construction of the hostels remains affordable andthat the institution gets value for its money. The University intends to procure the requiredworks and services for a period of 20 years under the PPP scheme as per the provisions ofthe PPP Act, 2013. The procurement will involve the construction of hostels with bed spacecapacity of 4000, including the development of corresponding bulk infrastructure andassociated facilities at the University premises.

With the assistance of the Government of Kenya, the project remains a viable enterprise to thesuccessful bidder considering that with the increase in student numbers each year and thedemand for on-campus hostel accommodation continues to increase even with theparticipation of private developers in the sector. I therefore, take this opportunity to informpotential investors that the University fully supports hostel development on the PPP model andthis document forms part of an ongoing process of interaction between the University andinterested parties.

This memorandum has been prepared to inform interested parties of the hostel projectdevelopment and the prospects it holds both for the contracting authority and prospectiveinvestors. Your response to this endeavour will be highly appreciated.

……………………………………. ……………………………..Prof. Daniel Mugendi Njiru, PhD DateAg. Vice-ChancellorUniversity of Embu

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TABLE OF CONTENTS

1. INTRODUCTION ..............................................................................................................4

1.1 State of the Kenyan Economy....................................................................................5

1.2 Kenyan Education Sector...........................................................................................7

1.3 PPPs in Kenya...........................................................................................................9

2. OVERVIEW OF THE PROJECT .....................................................................................11

2.1 Introduction to University of Embu ...........................................................................11

2.2 Project Scope ..........................................................................................................11

2.3 The Demand for Hostel Accommodation..................................................................12

3. PROPOSED PPP SCHEME ...........................................................................................14

DISCLAIMER.........................................................................................................................16

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TABLE OF CONTENTS

1. INTRODUCTION ..............................................................................................................4



1.3 PPPs in Kenya...........................................................................................................9



2.2 Project Scope ..........................................................................................................11



DISCLAIMER.........................................................................................................................16

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TABLE OF CONTENTS

1. INTRODUCTION ..............................................................................................................4



1.3 PPPs in Kenya...........................................................................................................9



2.2 Project Scope ..........................................................................................................11



DISCLAIMER.........................................................................................................................16

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1. INTRODUCTION

University of Embu (UoEm) is located in Embu County, Kenya. A Feasibility Study wasconducted to determine the viability of building new Hostel facilities to accommodate thestudent growth projected.

The UoEm Hostels Project, henceforth “the Project”, is a Public-Private Partnership (PPP)project. The project consists of hostel accommodation, support bulk infrastructure and thenecessary associated facilities at UoEm.

UoEm, in coordination with the Transaction Advisor (TA), wishes to procure the Project in away that is commercially attractive to the market and meets the University’s objectives ofsupplying sufficient hostel accommodation. This Project Information Memorandum (PIM)forms part the Request for Qualifications (RfQ) document.

It has been prepared to inform interested parties as to the Project’s development andproposed project structure.

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1. INTRODUCTION





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1. INTRODUCTION





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2. KENYAN CONTEXT

2.1 State of the Kenyan EconomyEconomic Growth

Kenya has established itself as a strongeconomy since independence wasachieved more than 50 years ago. Over thelast decade, Kenya has experienced robustgrowth recording a gross domestic product(GDP) growth of 5.6% in 2015 and anaverage GDP growth of 5.3% between2005 and 2015. This is in comparison tosub-Saharan Africa’s two largesteconomies, South Africa and Nigeria’saverage GDP growth of 2.9% and 5.7%

respectively (Figure 1).

Figure 1: The Kenya Financial Sector

Source: The World Bank, 2017.

GDP growth has been driven mainly by theexpansion of the mining and quarrying,tourism, financial services, real estate and

construction sectors.1 Growth, particularlyin 2015, can be attributed to the increasedspending on infrastructure, improvedagriculture output, and enhanced investorconfidence.2

The Kenyan economy is mainly dominatedby the agricultural sector. As of 2015, thesector accounted for over 25% of thecountry’s GDP and over 50% of revenuefrom exports.3 The 2007/8 financial crisisreduced demand for its main horticultureexports. This coupled with a slowdown inother economic sectors, such as the

tourism industry resulted in growthsignificantly decreasing in 2008 to 0.2%.

Kenya has seen a general reduction ininflation over the period 2005 - 2015,although there have been periods of

1 Central Bank of Kenya. 2016. The Kenya Financial SectorStability Report, 2015: Issue No.7. p12.2 Ibid.3 Deloitte. 2016. Kenya Economic Outlook 2016: The StoryBehind the Numbers. p15.

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2. KENYAN CONTEXT












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2. KENYAN CONTEXT












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volatility, dropping from a high of 26% in2008 to relatively stable levels of around 6- 7% over the past few years. Inflation for2016 is predicted to come in at similarlevels, around 7.8%.4

In 2016, Moody’s gave Kenya positiveoutlook and a B1 sovereign rating amidexpected continued strong growthprospects.5

The recent economic data thus show thatthe Kenyan economy is relatively stable atpresent, with moderate inflationexpectations and good growth projectionsfor the future. A sound economicenvironment such as this provides a strongfoundation for future investments.

Socio-economic Trends

Kenya's population has been growing at arapid pace, doubling over the last 25 years.As of 2015, the population stood at 46million with a growth rate of 2.6% perannum. Approximately 74%6 of thepopulation lives in rural areas. Increasededucation levels, particularly amongstwomen may delay the childbearing ageleading to a slower growth in the populationin the long run.

Figure 2: Kenya's Population Trend, 2000 -2016

4 Kenya National Bureau of Statistics. Leading EconomicIndicators (January 2016)5 https://www.moodys.com/research/Moodys-affirms-Kenyas-B1-sovereign-rating-maintains-stable-outlook--PR_343617.6 UNESCO Institute for Statistics. 2017.http://data.uis.unesco.org/#. Accessed: [30/05/2017].


Kenya has been experiencing high rates ofyouth unemployment andunderemployment. The informal sectormakes up a majority of the jobs created.Total unemployment in 2016 was 11%(Figure 3). The employment to populationratio, i.e. the percentage of the populationaged 15 years and older that is employed,is 60.1%.7

Figure 3: Kenya's Unemployment Trend,2000 - 2016


Business Climate

Kenya has taken a number of measures toimprove the business environment. Someof the measures taken include:

7 International Labour Organisation. 2017. ILOSTATdatabase. http://www.ilo.org/ilostat. Accessed:[30/05/2017].

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Business Climate



POPULATION

2.5%

2.6%

2.6%

2.7%

2.7%

2.8%

30 32 34 36 38 40 42 44 46 48

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

Mill

ions

Population, 2000 - 2015

Population Population Growth

UNEMPLOYMENT

8.6%

10.4%

11.2%

12.2%

11.0%

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

2016

Unemployment Rate, 2000 - 2016

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Business Climate



POPULATION

2.5%

2.6%

2.6%

2.7%

2.7%

2.8%

30 32 34 36 38 40 42 44 46 48

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

Mill

ions

Population, 2000 - 2015

Population Population Growth

UNEMPLOYMENT

8.6%

10.4%

11.2%

12.2%

11.0%

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

2016

Unemployment Rate, 2000 - 2016

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Student admission to publicuniversities in Kenya is tied to theuniversities’ capacity to absorb newstudents, influenced primarily byteaching space. Hostel availability wasdelinked from admissions, butchallenges persists.

streamlining the process of gettingelectricity by introducing the use of ageographic information system whicheliminates the need to conduct a site visit,thereby reducing the time and interactionsneeded to obtain an electricity connection;registering property at the land registry andcadastre is more transparent therebysimplifying the process; and electronic filingsystems allow for faster payment of taxesfaster for companies.

Kenya’s “Ease of Doing Business” isranked 92 out of 190 countries globally.Amongst its East African Community (EAC)peers, Kenya is ranked second with adistance-to-frontier (DTF)8 score of 61.22.

Figure 4: Kenya versus East AfricanCommunity "Ease of Doing Business"Ranking, 2017


8 An economy’s distance-to-frontier score is indicated on ascale from 0 to 100, where 0 represents the worstperformance and 100 the frontier

2.2 Kenyan Education SectorThe Landscape of Tertiary Education

University education in Kenya began in1963 with just 571 students enrolled inNairobi University College (currently knownas the University of Nairobi). From thishumble beginning the enrollment hasgrown to a total of 443,783 students forthe 71 accredited Universities as at 201711.The Vision 2030 introduces a policy shiftfor tertiary education in Kenya, movingtowards greater government involvement inthe universal provision of tertiary educationfor the Kenyan society.

In particular, increased student transitionfrom secondary to tertiary education andthe corresponding increase in studentenrolment and the expansion of tertiaryeducation institutions forms a primarymeans in achieving the Government ofKenya’s (GoK) goal of providing “globallycompetitive quality education, training andresearch for sustainable development”.9

The rapid expansion of tertiary educationamong the youth has resulted in thepromotion of Colleges to full Universitystatus. The total number of PublicUniversities in Kenya increased by 30.4%in 2016 after the granting charters to 7University Colleges to full Universitystatus.10 Expansion has occurred in allPublic Universities and in Private for-profitproviders of tertiary education.

Along with growth in the number ofUniversities, has come huge growth inenrollments. The enrollment figures for

9 Kenya Vision 2030 pg. 9810 Kenya National Bureau of Statistics. 2017. EconomicSurvey. p40.11Copyright University World News 2007-2014

47.37

54.48

57.77

58.13

61.22

69.81

Burundi (Rank 157)

Tanzania (Rank 132)

Uganda (Rank 115)

Regional Average (Raank 110)

Kenya (Rank 92)

Rwanda (Rank 56)

0 100

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47.37

54.48

57.77

58.13

61.22

69.81

Burundi (Rank 157)

Tanzania (Rank 132)

Uganda (Rank 115)

Regional Average (Raank 110)

Kenya (Rank 92)

Rwanda (Rank 56)

0 100

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2017 show that there was a total of443,783 students enrolled at allUniversities across Kenya, more thandouble the 2012 enrollment number.Approximately 215 000 (48%) of thosestudents were enrolled in PrivateUniversities.

There are current efforts to improve thequantity and quality of hostelaccommodation at a number ofGovernment Universities and Colleges inthe country. The Kenya InfrastructureFinance and Public-Private PartnershipProject (IFPPP) is a World Bank-fundedcredit facility that seeks to promoteincreased private investment in the Kenyaninfrastructure market. With the assistanceof the IFPPP, a number of PublicUniversities and Colleges are looking toaddress the growing shortfall in hostelaccommodation through a PPParrangement.

While Public Universities have made effortsto provide additional teaching space toaccommodate the increasing number ofstudents, partly due to cost constraints,less emphasis has been placed ondeveloping additional hostel facilities. Thishas created a situation where manystudents have no option but to look foraccommodation space outside theUniversities’ premises, generally in poorlydeveloped private accommodationalternatives.

Through the development of adequateresidence facilities at these places oflearning, the GoK hopes to improve thesuccesses of higher education institutionsand meet national education anddevelopment priorities. This is in line withthe National Strategic Vision 2030, which

obligates Universities to meet theincreasing demand for higher educationand to improve the welfare of students.

National Education Policy Prioritiesin Kenya

Historic underinvestment in educationsystems is a feature of most developingcountries. This has been true in Kenya aswell, where the demand for qualityeducation outstrips supply. Affordabilityconcerns also make the provision ofuniversal education a national challenge.

Figure 5: Economic Sector Contribution toKenya's GDP, 2016

Source: Kenya National Bureau of Statistics,2017.

The Education sector contributed for 4.9%of Kenya’s GDP in 2016. The grossrecurrent expenditure for the Ministry ofEducation is expected to rise by 13.5 percent.11 Past budget cuts have made this anincreasingly difficult task to achieve.Shortages in the number of lecturers alsoaffect growth in quality standards and leadsto growing student to faculty ratios.

Tertiary education is seen as playing animportant role in reaching Kenya’s nationaldevelopment goals. The GoK has madeinvestment in education core to its

11 Kenya National Bureau of Statistics. 2017. EconomicSurvey. p2.

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development policy over the past twodecades. The government’s PovertyReduction Strategy Paper (PRSP)advocated six areas of focus for investmentover the period 2001 to 2004, one of whichwas human resource development. Thiswas followed by the GoK’s EconomicRecovery Strategy (ERS) which detailedthe government’s strategy for wealth andemployment creation for the period 2003 to2007. Four pillars supported theimplementation of the ERS, one of whichwas investment in the human capital of themost vulnerable members of society.

These strategies culminated in the creationof a long-term blue print for Kenya’snational development path, contained inthe GoK’s Vision 2030. The aim of Vision2030 is to transform Kenya into a ’middle-income country by providing a high-qualityof life to all its citizens by the year 2030’.12

Identified as core to the success of theVision, is the continued development of theeducation and training sector.

Understanding the current situation thatcharacterizes tertiary education in thecountry is important to inform ourunderstanding of the kinds of interventionand investment that is required goingforward. Aligning the existing needs thatthis project seeks to address, with thebroader national goals for tertiaryeducation will ensure that resources areused where they are most needed.

2.3 PPPs in Kenya

Infrastructure is fundamental to economicgrowth, with long-lasting effects on theeconomic growth and developmentpotential of a country. In contrast, a lack of

12 Kenya Vision 2030

infrastructure is closely related to highlevels of poverty and low levels of equality.This is because infrastructure, particularlybasic infrastructure most needed in fragileand developing economies, enablescountries’ populations to become moreproductive, provides basic services tohouseholds and improves the livingconditions of a nation.13

In order to meet this need, GoK will have toseek out different modes of financing.PPPs provide one alternative, whereprivate sector finance can be integratedinto national development priorities. A PPPis a long-term contract between a privateparty and a government agency, forproviding a public asset or service, in whichthe private party bears significant risk andmanagement responsibility.

13The World Bank (2015). Global Infrastructure Facility Getsto Work. Online:http://www.worldbank.org/en/programs/global-Infrastructure-facility

Kenya’s PPP Policy focuses on thefollowing parameters:1

Providing a context for PPPs in Kenyaand outlining the potential goals andbenefits of the PPP framework;

Providing the foundation for: theestablishment of institutions to drivethe PPP agenda; the mobilisation ofinternational and domestic privatesector investments; and the supportthat will be provided by GoK to PPPprojects; and

Providing a clear and transparentprocess for PPP project developmentin Kenya.

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2.3 PPPs in Kenya










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2.3 PPPs in Kenya










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It is within this context that the GoK hasintroduced PPPs into its nationaldevelopment approach. This began in 2009with the establishment of an institutionaland regulatory framework that supportedthe use of PPPs, which was subsequentlyreviewed and updated a year later.14 Thiswas followed by an official GoK PPP Policystatement that articulated the GoK’scommitment to PPPs and aimed to providethe basis for the enactment of legislationsurrounding the use of PPPs.

Following from the PPP Policy was thepassing and coming into effect of thePublic Private Partnership Act, No. 15 of2013 (‘PPP Act’), which details the processthrough which PPPs must be undertaken inKenya, GoK PPP Regulations werepublished in 2014 and provided moredetailed operational directions on how PPPprojects will be prepared, tendered,approved, and implemented, and what theroles and responsibilities of the partiesinvolved in PPP transactions are.

14 Kenya PPP Unit Website.http://www.pppunit.go.ke/index.php/home Accessed on 10December 2015

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3. OVERVIEW OF THE PROJECT

3.1 Introduction to University ofEmbu

The University of Embu (UoEm) wasestablished as a Constituent College of theUniversity of Nairobi via Legal Notice No.65 of 2011 by His Excellency, PresidentMwai Kibaki. The University College wasgranted a Charter on 7th October 2016 tofull- fledged University status - TheUniversity of Embu.

The objective of the University is todevelop and expand opportunities forhigher education in Kenya. This is in linewith its Vision, “A dynamic epicentre ofexcellence in training and research forservice to humanity” and the Mission, “Togenerate, advance and disseminateknowledge through training, research andinnovation for the development ofhumanity”.

Currently, UoEm offers variousprogrammes at Doctoral, MastersBachelors’, Diploma and Certificate, levels.In addition, the University offers short termcourses, seminars and field days forvarious stakeholders.

3.2 Project Scope

UoEm is seeking to engage a privateparty to finance, build and operatestudent accommodation facilities

A detailed feasibility study has beenconducted which clearly outlined therationale for UoEm to embark on thisproject, as well as providing the most

feasible site and design option, which havebeen technically, financially andeconomically appraised. Based on theoutcomes of the feasibility study theTransaction Advisors (TA) recommendedthat the procurement of the project bepursued as a PPP, as this provides thebest value for money for the University.

The biggest challenge currently facingUoEm is provision of adequate and moderninfrastructure to meet students’ needs.Despite inheriting dilapidated infrastructure,the University has refurbished andexpanded the facilities. Due to limitednational resources the Governmentencourages Universities to focusinfrastructural development on coremandate (teaching, research andextension) which excludes students’hostels. There is thus a need to seekalternate sources of funding for thedevelopment of student hostels.

The project’s scope covers threecomponents – hostel accommodation, bulkinfrastructure and associated facilities.

Based on the TAs analysis, anddiscussions with UoEmManagement, it is envisaged thathostels developed under this projectwill be designed to provideaccommodation for 4,000 studentswithin the University.

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3.2 Project Scope







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3.2 Project Scope







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Hostel Accommodation

The hostel accommodation scope relatesto the specific hostel accommodationneeds for the growing UoEm studentpopulation. This is the core of the projectscope and outlines the number of studentsfor whom hostel accommodation must beprovided, as well as the necessaryaccompanying features. Based on theNeeds Analysis, the requiredaccommodation infrastructure for UoEm isas follows:

Hostel accommodation for 4,000students (including 3, 500undergraduate and 500postgraduate) equipped with bedsand mattresses, storage wardrobes,study tables and chairs

Hostel blocks to be equipped withthe required sanitary facilities

Common rooms for students

Kitchenettes per block

Laundry facility per block

Management offices per block

Centralized modern kitchen anddining hall to serve the studentpopulation

Bulk Infrastructure

The functionality of the hostelaccommodation is reliant on certain bulkinfrastructure. The existing infrastructure issufficient to meet the current studentpopulation. The Needs Analysis providedthe detail on the enhancements of the bulkinfrastructure services required toaccommodate the anticipated increase in

students residing on campus. Based on anassessment of the existing bulkinfrastructure at UoEm, the requiredsupporting infrastructure is as follows:

Additional water supply for the newhostels;

Electricity connection for the newhostels including standbygenerators;

Additional sewerage systems tosupport the existing sewer system;

Road access to the new hostels.

Associated Facilities

In addition to the essential hostelaccommodation and required supportinginfrastructure, certain facilities may beincluded in the scope of the project. Thiswill be to enhance the residential serviceprovided to students. The associatedfacilities is an important consideration as itwill enhance the commercial viability of theproject.

The required facilities at UoEm have beenidentified as follows:

Tuck shops in the hostels,

Hair dressing salons and barbershops,

Parking areas,

Recreation facilities.

3.3 The Demand for HostelAccommodation

The proposed provision of additional hostelaccommodation for UoEm is premised on aview that the current hostel

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Bulk Infrastructure












Parking areas,




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Bulk Infrastructure












Parking areas,




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accommodation is insufficient for the needsof the current and future studentpopulation.

In reality this implies majority of thestudents live in private hostels andexperience various challenges such as:

Sanitary services Accessibility to on campus services

e.g. library and computer labs. Insecurity Congestion Long commutes

By April, 2013 when its first batch ofstudents reported, the facilities wereadequate. However, UoEm has sinceexperienced rapid increase in enrolment toover 5000 students currently. However, theon-campus hostel capacity has remained

constant at 752.

UoEm Management anticipates a rapidgrowth trajectory in the total number ofstudent enrollment. Over the next 20 years,the total student population is estimated togrow by average of 16% each year.Student population is thus, expected togrow from the current 5444 (2017) to about69,000 in 2037.

Figure 6: Historical, Current and ProjectedStudent Population, Main Campus, 2010 -2030

Source: University of Embu, 2017. Note: bluebars represent actual past enrolment numbers;the yellow bar represents current enrolmentnumber and purple bars represent studentpopulation projections.

The supply of hostel accommodation forUoEm students is currently providedthrough a combination of on-campusprovision by the University and privatehostels that are within the vicinity of theUniversity.

The institution currently has 5,444students. With the current hostel capacity,this means that only 752 (13%) of thesestudents reside on campus.

There is currently an accommodation gapat University of Embu which is likely toincrease in future.

The implementation of this project will assistUoEm address the shortage of residencespace through the development ofadditional hostels, thereby meeting theaccommodation needs of current and futurestudents.

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constant at 752.







0

10000

20000

30000

40000

50000

60000

70000

80000

2012

2013

2014

2015

2016

2017

2018

2019

2020

2021

2022

2023

2024

2025

2026

Stud

ent n

umbe

r gro

wth

Year


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constant at 752.







2026

2027

2028

2029

2030

2031

2032

2033

2034

2035

2036

2037

Year


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4. PROPOSED PPP SCHEME

UoEm intends to procure the requiredworks and services through a 20 year PPPscheme which will involve the successfulbidder establishing a dedicated specialpurpose vehicle (SPV) that will enter intoan agreement with UoEm, under theprovisions of the Kenya PPP Act, 2013.

It is envisaged that the project’s capitalcosts will be financed by the ProjectCompany through a mix of shareholderequity and long-term debt financing.

The primary revenue source for the projectwill be revenues generated from thehostels, as well as the ancillary facilities.

The figure below provides a simplifiedillustrative schematic diagram of theanticipated project structure.

Figure 7: Project Structure

To enhance the commercial viability of theproject, the Government is currentlyexploring potential financial support to beprovided to the project, either through aninitial capital injection and/or an annualunitary payment. Where a unitary paymentapproach is adopted, the payment

mechanism will be based on indexedperiodic payments from the ContractingAuthority over the concession period. Suchpayments will be contingent on theavailability of the contracted service, atagreed upon standards.

The table below provides an indication ofthe intended allocation of the mainresponsibilities and risks associated withthe PPP scheme.

Table 1: PPP Scheme Risks andResponsibilities

Risk category ProjectCompany

ContractingAuthority

Design

Land Availability

Construction

Operations &Maintenance

Demand

Financing

Performance

Exchange RateRisk

Inflation Risk

Interest RateRisk

Force MajeureRisk

Political Risk

A Preliminary Environmental Impact andSocial Assessment (PESIA) study wasconducted for the proposed project. For thepurpose of applying for an EnvironmentalImpact and Social Assessment (ESIA)license from the National EnvironmentManagement Authority (NEMA), a detailedEnvironmental Impact and Social

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Design

Land Availability

Construction


Demand

Financing

Performance

Exchange RateRisk

Inflation Risk

Interest RateRisk

Force MajeureRisk

Political Risk


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Design

Land Availability

Construction


Demand

Financing

Performance

Exchange RateRisk

Inflation Risk

Interest RateRisk

Force MajeureRisk

Political Risk


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Assessment Study for the project will becarried by the investing Consortium.

Further details on the project’s scope,structure and risk allocations will beprovided in the Request for Proposals andPPP Project Agreement which will beprovided to Prequalified Bidders.

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DISCLAIMER

The information provided to Prospective Bidder(s) or any other person, in this ProjectInformation Memorandum (PIM) and any other information, whether verbal or written, providedby University of Embu (UoEm) or any of its employees or advisors, or on behalf of UoEm, isprovided to Prospective Bidders on the terms and conditions set out in the RFQ and suchother terms and conditions as may be set out from time to time.

The PIM is not an agreement and is neither an offer nor an invitation by UoEm to theProspective Bidders or any other person. UoEm, its employees and advisors are not bound byany of the contents of this PIM. The purpose of the PIM is to provide interested parties withinformation that may be useful to them in preparing their Qualification Documents pursuant tothe RFQ. The RFQ includes statements that reflect various assumptions and assessmentsarrived at by UoEm in relation to the Project. Such assumptions, assessments and statementsdo not purport to contain all the information that each Prospective Bidder or any other personmay require. The PIM may not be appropriate for all persons, and it is not possible for UoEm,its employees or advisors to consider the investment objectives, financial situation andparticular needs of each party who reads or uses this PIM. The assumptions, assessments,statements and information contained in the PIM and any other associated documents maynot be complete, adequate, accurate or correct. Each Prospective Bidder should, therefore,conduct its own investigations and analysis and should check the completeness, adequacy,accuracy, correctness, and reliability of the assumptions, assessments, statements andinformation contained in this PIM and obtain independent advice from appropriate sources.

Information provided in the PIM is on a wide range of matters, some of which may dependupon interpretation of law. The information given is not intended to be an exhaustive accountof statutory requirements and should not be regarded as a complete or authoritative statementof law. UoEm accepts no responsibility for the accuracy or otherwise of any opinion orinterpretation of law expressed herein.

UoEm, its employees and advisors make no undertaking, assurance, representation orwarranty and shall have no liability to any person, including any Prospective Bidder, under anylaw, statute, rules or regulations, tort, principles of restitution or unjust enrichment orotherwise, for any loss, damages, cost or expense that may arise from or be incurred orsuffered on account of anything contained in the PIM or other information provided toProspective Bidders or any other person, including the completeness, adequacy, accuracy,correctness, and reliability of the PIM and any assessment, assumption, statement orinformation contained therein or deemed to form part of the PIM or arising in any way fromparticipation in the Bidding Process.

UoEm may, in its absolute discretion, but without being under any obligation to do so, amend,update, or supplement the information, assessments or assumptions contained in the PIM.However, UoEm, its employees and advisors shall not be liable to any rospective Bidder(including to the Pre-Qualified Bidders) in respect of any failure to (i) disclose or makeavailable any information, documents or data; (ii) amend, update, or supplement the PIM; or

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DISCLAIMER






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DISCLAIMER






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(iii) provide any information regarding any inaccuracy, error, omission, defect or inadequacy inthe PIM.

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