CDB contributes to $494 million loan for Nairobi JKIA–James Gichuru Road Expressway Project (Linked to Record ID#105899)

¥247M RMB

Funder	China Development Bank (CDB)
Recipient Organization	Moja Expressway Company Limited
Country	Kenya
Start Date	Oct 18, 2023
End Date	Sep 03, 2028
Duration	1,782 days
Number of Grantees	1
Roles	Recipient
Data Source	AidData Chinese Aid
Grant ID	`58125`

Grant Description

CDB and China Eximbank provide $494 million loan for Nairobi JKIA–James Gichuru Road Expressway Project in Kenya 2023 In September 2018, China Road and Bridge Corporation (CRBC) was invited to develop the Nairobi JKIA–James Gichuru Expressway Project during 2018 FOCAC Summit in Beijing. Two months later, in November 2018, CRBC undertook a project feasibility study.

It then completed a technical proposal in January 2019 and a financial proposal in March 2019.

Then, in April 2019, the Kenyan Government awarded a contract to CRBC for the Nairobi JKIA–James Gichuru Expressway Project. A project agreement was signed on June 30, 2019. Then, on October 15, 2019, CRBC and Kenya National Highways Authority (KeNHA) signed a a 30-year concession agreement. The total cost of the Nairobi JKIA–James Gichuru Expressway Project is RMB 4.602 billion ($668 million).

It is being implemented on a Public-Private Partnership (PPP) and Build-Own-Operate-Transfer (BOOT) basis and financed according to a debt-to-equity ratio of approximately 75:25.

On October 18, 2023, Moja Expressway Company Limited — a special purpose vehicle and wholly owned subsidiary of CRBC — signed a loan (facility) agreement worth $494 million with China Development Bank (CDB) and China Eximbank.

📋 Loan / Grant Terms

💰 Loan Amountare as follows: a 15-year maturity

📅 Maturity15 years

China Road and Bridge Engineering Co., Ltd. (中国路桥工程有限) and CCCC International (Hong Kong) Holdings Limited (中交国际(香港)控股有限) also agreed to make equity contributions of $133.6 million and $33.4 million, respectively, to Moja Expressway Company Limited in order to support the implementation of project.

The Nairobi JKIA–James Gichuru Expressway Project involves the development, operation and maintenance of an expressway between Jomo Kenyatta International Airport (JKIA) and James Gichuru Road.

The 27.1 km expressway -- with 18.2 km on the ground and 8.9 km elevated -- runs from JKIA to James Gichuru road (Westlands Redhill Road Link). It connects Mlolongo town in Machakos County with James Gichuru Road along the median strip of the A8 National Road.

The 4-lane dual carriageway has 11 interchanges at Mlolongo, Standard Gauge Railway, Jomo Kenyatta International Airport, Eastern Bypass, Southern Bypass, Capital Centre, Haile Selassie Avenue, Museum Hill, Westlands, and James Gichuru Road. It was to built to a Class A standard with a design speed of 80 km per hour.

The expressway relies on a closed toll system with 27 toll gates located at two main road points and nine interchanges.

The Nairobi JKIA–James Gichuru Road Expressway Project was subjected to an ex ante environmental impact assessment (EIA).

The project team hired a local consultancy specializing in EIA for environmental management advice and monthly impact assessments. The team collected, translated, and studied Kenyan laws and regulations on environmental protection.

It also adhered to Kenya's Law on Environmental Impact Assessment and sought to minimize the project's impact on the local ecosystem.

The toll plazas and ramp in downtown Nairobi were originally routed across a century-old fig tree, but to avoid adverse impacts to the ancient tree, the project team rerouted the expressway to preserve the tree. CRBC is the contractor responsible for project implementation. Construction commenced on May 4, 2019.

However, a formal groundbreaking ceremony did not take place until October 16, 2019. As of July 2021 the project had achieved a 60% completion rate. By November 8, 2021, it had achieved a 75% completion rate.

A main line beam erection ceremony was held on December 23, 2021 and attended by the Kenyan President, the Kenyan Minister of Transport, and the Chinese Ambassador to Kenya. By December 2021, the project had achieved a 94% completion rate. As of April 2022, it had achieved a 95% completion rate. During the construction phase, this project reportedly employed 4,000 workers.

The expressway was originally scheduled to be opened to traffic on June 30, 2022. It was opened to traffic on a trial basis on May 14, 2022. However, it was not officially put into operation until July 31, 2022.

Upon project completion, travel time from the airport to the downtown area was reduced from 2 hours to 20 minutes, and the maximum daily traffic flow reached 63,000 vehicles.

An electronic toll system (ETC) was introduced for the first time in Kenya's history and the share of ETC users increased sharply -- from 26.8% to 70% -- after the expressway went into operation.

Under the terms of its 30-year concession (BOOT) agreement (with a 3-year construction period and 27-year operation period), CRBC is responsible for transferring the Nairobi JKIA–James Gichuru Expressway back to KENHA in 2049 and it is expected to repay its loan (and recoup its equity investment) by collecting toll revenues.

Once operational, each driver on the expressway will be required to pay a toll of between 109.4 and 1,641 Kenyan shillings (between $1 and $15), depending on the size of the car and the distance traveled. Over the course of the 30-year concession period, the project is expected to generate $2.765 billion.

The project has been disclosed as a contingent public sector liability by the Kenyan Treasury (due to the fact that early termination of the PPP contract with Moja Expressway Company Limited would require that the Government of Kenya make termination payments to Moja Expressway Company Limited).

📋 Staff Comments

This project is also known as the JKIA-Westlands Expressway (30KM) PPP Project, the Nairobi Expressway Project, the Nairobi Expressway Road Project, the Nairobi JKIA–James Gichuru Expressway Road Project, and the BOT Nairobi JKIA-James Gichuru Expressway Project.
The Chinese project title is 中国路桥肯尼亚高速公路项目 or 内罗毕机场（乔莫·肯雅塔国际机场）高架桥项目 or 肯尼亚内罗毕机场高架桥项目 or 内罗毕高速公路项目 or 中国路桥肯尼亚高架桥项目 or 肯尼亚内罗毕快速路项目 or 内罗毕机场收费快速路 or 肯尼亚内罗毕快速路项目 or 内罗毕机场收费快速路 or 肯尼亚内罗毕快速路项目 or 肯尼亚内罗毕快速路投资项目 or 内罗毕机场收费快速路项目 or 肯尼亚内罗毕快速路项目.
Some sources refer to the length of expressway as 18.586 km. However, this appears to be a refer to the section of the expressway that is on the ground (rather than the ‘elevated’ section that runs along a set of viaducts).
Sources refer to the total cost of the project as $667.8 million, $660.8 million, or $509.2 million.
The project financiers are identified via https://www.cdb.com.cn/xwzx/mtjj/202409/t20240904_11896.html and https://news.goalfore.cn/topstories/detail/66164.html6. According to a January 2020 Fiscal Transparency Evaluation, ‘[t]here is no transparent disclosure of the full assets and liabilities relating to ongoing and planned PPPs despite this financing modality being increasingly preferred by the [Kenyan] government. The total value of PPP projects in the pipeline is estimated at 13 per cent of GDP’.
The October 18, 2023 loan (facility agreement) is referenced here: https://www.fmprc.gov.cn/mfa_eng/zxxx_662805/202310/t20231020_11164541.html8. Evidence that the loan is backed by a Sinosure credit insurance policy can be found at https://www.sohu.com/a/728230229_121123850 and https://www.dropbox.com/scl/fi/zwqp7hloxer7lktl3stn8/_-_-_-_.pdf?rlkey=1qfppk3alshr25a8nb68h1hxe&dl=0 and https://news.goalfore.cn/topstories/detail/66164.html9. Evidence that the loan is backed by a sovereign guarantee can be found here: https://www.dropbox.com/scl/fi/3vw1z2qbp9scnsbbvsojo/c8838056fc7ceb0357637b39d2470aa0.pdf?rlkey=qr0x2zw1de3d95z5inlmghtro&dl=0. Note, in particular, the passages that read as follows: 'The project was financed by CRBC through a credit facility from Government of China under Guarantee of Kenya Government' and '[I]n the case of Kenya, the project was financed by the private party through a credit facility from Chinese financial Institution under the sovereign guarantee from the Government of Kenya.'10. Some sources suggest that the loan agreement was signed on September 8, 2019 rather than October 18, 2023. This issue warrants further investigation.
Stanbic partnered with Moja Expressway to facilitate toll collections on the Nairobi Expressway. Stanbic is also acting as the sole payment agent in Kenya, acting on behalf of the project's lenders and escrow agents.
Moja Expressway Company Limited is a limited company registered in the Republic of Kenya under company number PVT-XYUJQ62.
The estimated interest rate and grace period that apply to the loan are drawn from the following

📚 Sources & References

https://www.dropbox.com/s/mcry3ltm3palbf8/420352565-20190304-Nairobi-JKIA-to-JG-Rd-Expressway-Project-final.pdf?e=1&dl=014. CDB's contribution to the loan is unknown for the time being. For the time being
AidData has assumed CDB and China Eximbank contributed equally ($247,000,000 each). Sources: Kenya signs Sh67b deal with China for Konza Project
JKIA expressway
Kenya secures funds for Konza
JKIA-James Gichuru expressway projects
Public-private partnerships better than loans
A glimpse of how the JKIA-Westlands Expressway will look like when complete
Chinese Private Investors Commit to Support JKIA-Westlands Expressway
Nairobi Expressway Construction Works Begin
The First PPP Expressway Launched and Nairobi-Malaba SGR Open to Traffic
肯尼亚首条PPP高速路正式启动、内马铁路一期正式建成通车
Kenya Government Gazette dated 2020-02-28 number 40
Chinese Firm Starts Work on USD600 Million Expressway in Kenya
Green Belt Movement demands designs of city expressway
Kenya launches construction of Chinese funded expressway to decongest Nairobi, the making of kenyas most expensive roads
Nairobi JKIA To JG RD Expressway Project - Final
INT-19-K04-FinalReport
African nations mend and make do as China tightens Belt and Road
The Nairobi Expressway Traffic Updates
The Problem- With PPP Deals
Kenya-PPP-Pipeline-Status-Report
Nairobi Expressway
Nairobi-Expressway-NEMA-Submission-for-printing_centric_Jan-15-2020-FINAL-2
Fiscal Risks Arising from Public Private Partnerships
Rubber meets the road as Nairobi Expressway tests PPP model – The Standard
肯尼亚在建内罗毕机场高速路经穿乌胡鲁公园
绿会“一带一路”生态冲突（EBRs）案例分析
喜讯！公司新签肯尼亚内罗毕机场高架桥投资和内马铁路一期运营维护协议
喜事连连！内罗毕机场高架桥开工，内马铁路一期通车，肯尼亚总统全程见证
盘点：2019中资企业海外10大投建营（PPP/BOT)项目
肯尼亚首条PPP高速路正式启动、内马铁路一期正式建成通车
肯尼亚首条PPP高速路正式启动、内马铁路一期正式建成通车
肯尼亚内罗毕快速路项目开工
中国路桥签署肯尼亚内罗毕快速路项目更替协议
Nairobi Expressway
Nairobi JKIA to James Gichuru Rd Expressway Project
Kenya Secures Shs 67 Billion In Project Financing As The Belt And Road Summit Kicks Off In Beijing
NA, 10 Most Expensive Kenyan Roads
Construction Costs and Location
Relief for motorists as more Nairobi Expressway sections set to open
Kenya faces $1.4 billion penalty for road toll breaches
Motorists “Willing” to Pay Chinese Company to Use JKIA-James Gichuru Road
China firm to get Sh106bn on city expressway toll fees
President Uhuru launches construction of JKIA-Westlands Expressway [Photos]
肯尼亚内罗毕快速路项目开工
肯尼亚内罗毕快速路项目先建段施工全面展开
公司签署肯尼亚内罗毕快速路项目更替协议
Chinese investors to back three road PPPs in Kenya
NA
肯尼亚总统肯雅塔出席内罗毕快速路项目主线架梁贯通仪式
Machakos Country Reaches Agreements with China Road and Bridge Cooperation
KeNHA to conduct toll fee test run on Expressway
Nairobi Expressway to open to motorists on June 30
Kenya faces Sh158 billion penalty for road toll breaches
January 2020 FISCAL TRANSPARENCY EVALUATION UPDATE
Jubilee's new magic bullet for mega infrastructure projects
China firm to get Sh106bn on city expressway toll fees
UPDATE-ON-NAIROBI-EXPRESSWAY-AT-October-18, https://web.archive.org/web/20210517165746/https://www.ccccltd.cn/tzzgx/ggth/ag/202104/P020210402428894574562.pdf
中国路桥新签肯尼亚内罗毕机场高架桥投资和内马铁路一期运营维护协议
中国交通建设：拟投资肯尼亚内罗毕快速路项目
中国交通建设股份有限公司第四届董事会第三十一次会议决议公告
Explainer: How Nairobi Expressway will operate
ANNUAL-PUBLIC-DEBT-REPORT-2021-final
Nairobi Expressway 348 推文查看新推文 Nairobi Expressway
Kenya's new highway signals shift in China's lending blitz in Africa
Nairobi tollway an example of China’s new belt and road financing approach in Africa
Nairobi Expressway in Kenya picked for award
设施联通篇 - 信满丝路
第三届“一带一路”国际合作高峰论坛务实合作项目清单
Documentary: Nairobi Expressway
PRE - FEASIBILITY STUDY REPORT FOR IMPLEMENTATION OF KIBAHA - MLANDIZI - CHALINZE - MOROGORO TOLL EXPRESSWAY ( 20 5 KM ) PROJECT UNDER PUBLIC PRIVATE PARTNERSHIP (PPP) ARRANGEMENT
WANJIGI- The Treasury Is A Crime Scene
Some SGR Contracts Should Be Investigated
ENVIRONMENTAL AND SOCIAL IMPACT ASSESSMENT FOR THE PROPOSED NAIROBI EXPRESSWAY PROJECT - VOLUME I
Kipchumba Murkomen X Post
Probe Into Nairobi Expressway Secret Contracts Starts
MOJA PRIVACY POLICY (For users of the Nairobi Expressway)
中企投建内罗毕快速路运营一周年
中非项目合作新模式（PPP）引领非洲基建未来
公路建设，带动区域经济社会发展（共建“一带一路”·公路建设）, 2022 Best Practices of Sustainable Infrastructure. Projects
中国一带一路网：国开行：深化金融合作服务共筑高水平中非命运共同体
China Development Bank: Deepen financial cooperation and serve the building of a high-level China-Africa community with a shared future, 《金融时报》：中国国家开发银行：深化金融合作服务共筑高水平中非命运共同体
Gathering resources from...
ENVIRONMENTAL AND SOCIAL IMPACT ASSESSMENT FOR THE PROPOSED NAIROBI EXPRESSWAY PROJECT
List of Practical Cooperation Deliverables of the Third Belt and Road Forum for International Cooperation 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.