Completed Development AidData Chinese Aid

China Eximbank provides RMB 1.19 billion government concessional loan for Western Bypass Project

¥1.19M RMB

Funder	Export-Import Bank of China (China Eximbank)
Recipient Organization	Government of Kenya
Country	Kenya
Start Date	Sep 04, 2018
End Date	Feb 10, 2029
Duration	3,812 days
Number of Grantees	1
Roles	Recipient
Data Source	AidData Chinese Aid
Grant ID	`58031`

Grant Description

China Eximbank provides RMB 1.19 billion government concessional loan for Western Bypass Project On September 4, 2018, during the Forum on China-Africa Cooperation (FOCAC), the Export-Import Bank of China and the Ministry of Finance of Kenya signed an RMB 1,190,253,600 government concessional loan (GCL) agreement for the Western Bypass Road Project.

📋 Loan / Grant Terms

💰 Loan Amountbetween September 25

The proceeds of the loan are to be used by the borrower to finance a commercial (EPC) contract with China Road and Bridge Corporation (CRBC).

According to the Government of Kenya’s External Public Debt Register, the loan disbursed RMB 172,583,320.45 between July 1, 2020 and June 30, 2021 (in Fiscal Year 2020-2021) and RMB 504,859,536.18 between July 1, 2021 and June 30, 2022 (in Fiscal Year 2021-2022). No principal repayments were made between September 4, 2018 and June 30, 2022.

The loan’s amount outstanding was RMB 174,180,942.31 as of June 30, 2020, RMB 346,764,262.76 as of June 30, 2021, and RMB 851,623,798.94 as of June 30, 2022. The purpose of the project is to construct a 16.358 km bypass road (dual carriageway) from Gitaru to Ruaka. The road begins at Gitaru on the Nairobi-Nakuru highway and connects with the Southern Bypass in Kikuyu town.

It ends at Ruaka where it will connect to the Northern Bypass. The road was deigned as a Class A National Trunk Highway with 4 lanes and median strip. The Design Speed is 80km/h and the width of subgrade is 21m wide. The length of the main alignment of this project is 16.358km, with 17.351 km service roads (excluding ramps).

The starting point of the alignment is connected to the end of the Southern Bypass of Nairobi City, intersected with A104, with a full cloverleaf interchange located at the intersection. The road mainly follows along the old alignment towards the northeast.

The end of the alignment is located at Ruaka town, connecting the starting point of the Northern Bypass, and a single-trumpet interchange is set at Km14+813, connected with Limuru Road.

Passing several large towns such as Wangige, Ndenderu and Ruaka etc., the road provides convenience for several large population centres along the line, with interchanges set at Km0+855, Km4+851, Km7+865, Km10+000, Km12+600, Km14+813, respectively.

Pedestrian barriers will be installed in the midst to ensure that no pedestrian crossings occur at the non-authorized areas.

The project also involves the construction of major interchanges at Dirt (Kwa Magu), Wangige, Ndenderu, Kihara, Rumingi and Ruaka.

CRBC is the EPC contractor responsible for implementation and Kenya National Highways Authority (KENHA) is responsible for supervising its work. Construction began on March 15, 2019 and the project was originally expected to reach completion by the end of 2021. As of November 2021, the project had achieved an 80% completion rate.

As of May 2022, the project had achieved a 99% completion rate. The project was ultimately completed in August 2022.

According to the Kenyan Auditor General's 2023-24 report, in March 2022 KENHA and CRBC signed a contract for additional works valued at Kshs.815,740,720. The auditor general found that 64.1% of the additional works had been completed by September 2024.

However, only Kshs.41,250,000 had been paid which resulted in CRBC "suspending works and abandoning site." The project is now subject to litigation. The implementation of the project has reportedly created about 2,000 direct jobs for locals.

Traders dealing with cement, steel and other crucial raw materials have also reportedly benefited from the construction of the road.

📋 Staff Comments

This project is also known as the Nairobi Western Bypass Road Project. The Chinese project title is 内罗毕西环路项目 or 内罗毕西环城路项目.
The loan identification number in the Government of Kenya’s external public debt register is 2018011 (2018011_1).
The project identification number in the Government of Kenya’s Electronic Project Monitoring Information System (eProMIS) is 2018/057236.
The Government of Kenya’s external public debt register identifies a loan commitment commitment date of January 1, 2018 rather than September 4, 2018. This issue warrants further investigation.
The amounts outstanding and repayments data are drawn from the Kenyan Treasury’s External Public Debt Register. See https://www.dropbox.com/s/549ixt2gj1jbjvi/External-Public-Debt-Register-as-at-End-June-2022.pdf?dl=0 and https://www.dropbox.com/s/0et4jg1qfg1bo7r/External-Public-Debt-Register-as-at-End-June-2021.pdf?dl=0 and https://www.dropbox.com/s/233j706743q7f1g/External-Public-Debt-Register-as-at-End-June-2020.pdf?dl=0 and https://www.dropbox.com/s/qkoybr9ja0ohemy/External-Public-Debt-Register-as-at-End-June-2009.pdf?dl=0 and https://www.dropbox.com/s/thy3s6ggjcjd97z/External-Public-Debt-Register-as-at-End-June-2012.pdf?dl=0 and https://www.dropbox.com/s/fzbfq01vas6m0i9/External-Public-Debt-Register-as-at-End-June-2019.pdf?dl=0 and https://www.dropbox.com/s/ennrl6d4zd2nizs/External-Public-Debt-Register-as-at-End-June-2018.pdf?dl=0 and https://www.dropbox.com/s/8ibazrj1a8oho2d/External-Public-Debt-Register-as-at-End-June-2017.pdf?dl=0 and https://www.dropbox.com/s/wdbjl0wq49i09x1/External-Public-Debt-Register-as-at-End-June-2015.pdf?dl=06. One official source (https://www.dropbox.com/s/549ixt2gj1jbjvi/External-Public-Debt-Register-as-at-End-June-2022.pdf?dl=0 ) identifies the loan commitment date as January 1, 2018. This issue warrants further investigation.
This record has been marked as having evidence of financial distress because it was subject to the Debt Service Sustainability Initiative (DSSI).

📚 Sources & References

肯拟启动内罗毕西环路项目，带动周边地区发展
中国路桥承建肯尼亚内罗毕西环城路项目签署优惠贷款协议
China Eximbank loan for Construction of Western Bypass, [2018:057236] - CONSTRUCTION OF NAIROBI WESTERN BYPASS
Construction of Sh17bn Western Bypass underway
China Embarks on Construction of Kenya’s Sh.17 Billion Western Bypass
肯拟实施多条道路项目缓解内罗毕拥堵
Boon for Kenya, as Chinese investors line up for partnerships, 464 Persons Identified For Compensation In Construction Of Western By-Pass
SAIS-CARI Loans China
China-built road set for completion in December: official
External-Public-Debt-Register-as-at-End-June-2020.pdf
一带一路项目：中国路桥承建的内罗毕环城路工程，助力中非一带一路繁荣发展
The Western Bypass is the final link of the Nairobi Ring Road Masterplan.
SUMMARY-REPORT-2019-2020, [2018/057236] - CONSTRUCTION OF NAIROBI WESTERN BYPASS
ENVIRONMENTAL AND SOCIAL IMPACT ASSESSMENT FULL STUDY REPORT FOR THE PROPOSED NAIROBI WESTERN BYPASS PROJECT
KIAMBU COUNTY
KENYA
喜讯！公司肯尼亚内罗毕⻄环城路项目优惠贷款协议签署
Kenya says China-built ring road to be completed in December
PARLIAMENT OF KENYA THE SENATE THE HANSARD Wednesday, 3rd July, 2019
State borrowed Sh53 billion in six months
PARLIAMENT OF KENYA THE NATIONAL ASSEMBLY THE HANSARD Tuesday, 17th August 2021
The National Treasury Public Debt Management Office Summary Statement 2021/2022
中国进出口银行融资支持的肯尼亚西环城路项目实现通车
The Construction Of Nairobi Western Bypass Is Now Complete
SUMMARY STATEMENT OF PUBLIC DEBT FOR 2020/2021FY IN FOREIGN CURRENCY
AUDITOR-GENERAL'S REPORT ON NATIONAL GOVERNMENT MINISTRIES
DEPARTMENTS AND AGENCIES 2023/2024
Land acquisition, encroachment hamper mega bypass project 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.

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