Active Development AidData Chinese Aid

China Eximbank provides RMB 584 million government concessional loan for 247 km Garsen-Bura-Hola-Garissa Electricity Transmission Line Construction Project

¥584K RMB

Funder	Export-Import Bank of China (China Eximbank)
Recipient Organization	Government of Kenya
Country	Kenya
Start Date	Jul 12, 2012
End Date	Jan 26, 2027
Duration	5,311 days
Number of Grantees	1
Roles	Recipient
Data Source	AidData Chinese Aid
Grant ID	`31087`

Grant Description

China Eximbank provides RMB 584 million government concessional loan for 247 km Garsen-Bura-Hola-Garissa Electricity Transmission Line Construction Project On July 12, 2012, China Eximbank and the Government of Kenya’s National Treasury signed an RMB 584 million government concessional loan (GCL) agreement for the 247 km Garsen-Bura-Hola-Garissa Electricity Transmission Line Construction Project.

📋 Loan / Grant Terms

💰 Loan Amountare unknown

However, it is known that the proceeds of the loan were on-lent to a Kenyan state-owned electricity company called the Kenya Electricity Transmission Company Limited (KETRACO). The ultimate borrower (KETRACO) used the loan proceeds to finance a commercial contract with China CAMC Engineering Co. Ltd.

The purpose of the project is to construct a 247 km, 220kV single circuit transmission line from Garsen to Garissa via Bura and Hola as well s 220kV/33kV substations at Hola, Bura, and Garissa. The targeted beneficiaries of the project are in Tana River and Garissa County. China CAMC Engineering Co.

Ltd. is the contractor responsible for implementation. Construction began on November 25, 2020. By the end of 2021, the project had achieved a 50 percent completion rate. The project was originally scheduled to commence on July 1, 2013 and reach completion on June 30, 2016.

📋 Staff Comments

This project is also known as 247 km 220KV Garsen-Hola-Garissa Transmission Line and Associated Sub-stations Project, the Garsen Hola Garissa Project, and the Kenya Power Distribution System Modernization and Strengthening Project Phase II (Lot 2).
The KETRACO project identification number is MOE-CAMCE-01-20123. The Kenya Electronic Project Management Information System (e-ProMIS) project identification numbers are 2012/053884 and 2017/056524 and reference identification numbers are KETRACO-012 EN0012017.
The face value of the loan is identified as $112 million in the Kenya Electronic Project Management Information System (e-ProMIS).
e-ProMIS includes two separate records for the 247 km Garsen-Bura-Hola-Garissa Electricity Transmission Line Construction Project: a loan commitment on July 12, 2012 and a loan commitment on January 2, 2017. This issue warrants further investigation.
This record has been marked as having evidence of financial distress because it was subject to DSSI.

📚 Sources & References

Construction of Eastern Northern Bypass Road
The Kenya Gazette, e-ProMIS Kenya 053884 Full
GRID DEVELOPMENT final 2016
Finally
KETRACO agrees to compensate community
PRESS BRIEFING BY STATE HOUSE SPOKESPERSON
MANOAH ESIPISU
ON THE PRESIDENT’S TRIP TO MALTA
FRANCE AND SOUTH AFRICA
Garsen -Hola -Garissa Line
Ketraco boss
Fernandes Barasa, gets new term, 2019-2020 Annual Report & Financial Statements, 2018-2019 Annual Report & Financial Statements
Third Annual Progress Report 2020/21 On the Implementation of the Third Medium Term Plan (2018-2022) of the Kenya Vision 2030
Garsen – Hola – Garissa, e-ProMIS Kenya 056524 Full
Kenya: Garsen-Hola-Garissa line starts construction
SUMMARY STATEMENT OF PUBLIC DEBT FOR 2020/2021FY IN FOREIGN CURRENCY
Chinese Loans to Africa Database (2022 Update) Loan applications and disbursements are still being received and processed as the projects continue to evolve. Ongoing monitoring and evaluation are in place to ensure project continuity.

All Grantees

Government of Kenya

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