Active Mixed AidData Chinese Aid

[Suspended] China Eximbank provides $90.2 million buyer’s credit loan for Kamburu-Embu-Kibirigwi-Thika Transmission Line Project

$90.29M USD

Funder	Export-Import Bank of China (China Eximbank)
Recipient Organization	Government of Kenya
Country	Kenya
Start Date	Aug 01, 2017
End Date	Oct 13, 2028
Duration	4,091 days
Number of Grantees	1
Roles	Recipient
Data Source	AidData Chinese Aid
Grant ID	`58707`

Grant Description

[Suspended] China Eximbank provides $90.2 million buyer’s credit loan for Kamburu-Embu-Kibirigwi-Thika Transmission Line Project On August 1, 2017, China Eximbank and the Government of Kenya signed a $90,286,383.39 buyer’s credit loan (BCL) agreement for the Kamburu-Embu-Kibirigwi-Thika Transmission Line Project.

The loan carries a maturity of 17-years (final maturity date: July 21, 2034). The other borrowing terms of the BCL are unknown.

However, it is known that the proceeds of the BCL were on-lent to a Kenyan state-owned electricity company called the Kenya Electricity Transmission Company Limited (KETRACO).

The ultimate borrower, KETRACO, used the proceeds of the BCL to finance approximately 85% of the total cost of a $118 million commercial contract between a consortium consisting of China North Industrial Corporation (NORINCO, 中国北方工业有限公司) and Shandong Taikai Power Engineering Co. (TKPE, 山东泰开电力建设工程有限公司) and Kenya's Ministry of Energy and Petroleum, which was signed on January 29, 2016 and amended on May 26, 2017, October 18, 2019, and April 30, 2020.

No BCL (loan) disbursements or principal repayments took place between July 1, 2020 and June 30, 2022 (Fiscal Year 2020-2021 and 2021-2022). The loan’s amount outstanding was zero as of June 30, 2021 and zero as of June 30, 2022.

The purpose of the project is to construct (1) a 153 km, 220kV transmission line from Kamburu to Kibirigwi (via Thika and Embu) with bay extension at the Kamburu substation, (2) a 3 km 132 kV transmission line and three 150MVA 220/132kV substations at Embu, Kibirigwi and Thika, and (3) a 132kV LILO substation at Kibirigwi on the Masinga/Kutus transmission line.

NORINCO and TKPE are the EPC contractors responsible for project implementation. An Environmental and Social Impact Assessment (ESIA) was carried out for the project in June 2009.

Then, a November 2018 Sector Report from the Government of Kenya's Treasury Department identified the project as having cumulative expenditures of KES 2.651 billion as of June 30, 2018; it also identified the project as having achieved a 1% completion rate, with a status designation of ‘need[s] budget provision.’ However, by 2021, the project had achieved a 50% completion rate.

Its originally scheduled completion date is December 2022.

📋 Staff Comments

This project is also known as the Kamburu-Embu-Kibirigwi-Thika & Uplands Transmission Line Project, the Kamburu Embu Thika Project, the 148 km Kamburu-Embu-Thika Transmission Line and Associated Substations Project, the Kamburu- Embu - Kibirigwi - Thika - 220KV Transmission Line and Associated 220-132KV Substation Works and 132/66KV Substations Project, and the 220kV Kamburu-Embu-Kibirigwi-Thika Project. The Chinese project title is Kamburu-Thika 132/220kV电力线路传输及变电站工程建设项目.
Some sources suggest KETRACO was the original borrower and others claim it is the Government of Kenya. The Kenya Electronic Project Management Information System (e-ProMIS) identifies July 14, 2016 rather than August 1, 2017 as the loan commitment date. These issues warrants further investigation.
According to page 56 of the KETRACO 2019-2020 Annual Report, an RMB-denominated loan related to the construction of the Kamburu-Meru transmission line (Thika, Embu, and Kibirigwi are between Kamburu and Meru) was transferred from Kenya Power and Lighting Company (KPLC) to Kenya Electricity Transmission Company (KETRACO), on October 19, 2016. According to the novation agreement, KETRACO is required to make bi-annual payments to the Government of Kenya (GoK). However, as at 30 June, 2020, KETRACO had not made any payments to GoK, as stipulated in the novation agreement. Management has indicated that a moratorium for twenty-four (24) months had been sought from The National Treasury. However, this request for moratorium was yet to be considered by the National Treasury. It is unclear which loan this is referring to.
The KETRACO project identification number is KET/2/9/4/122. e-ProMIS identifies the total project cost as USD 134.4 million.
This China Eximbank loan is not included in the database of Chinese loan commitments that SAIS-CARI released in July 2020. Nor is it included in the China’s Overseas Development Finance Dataset that Boston University's Global Development Policy Center published in December 2020.
The Government of Kenya loan identification number is 2017037_1.
The amounts outstanding, disbursements, 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=08. As no disbursements were recorded for this loan, in accordance with AidData's methodology the project status field has been set to suspended.

📚 Sources & References

NORINCO Intl. Signed Kenya KAMBURU-THIKA Transmission Line Contract -
热烈祝贺公司成功签约肯尼亚7亿元融资项目合同
Environmental and Social Impact Assessments Study Report for the Proposed Kamburu-Embu-Kibirigwi-Thika Transmission Line Project, [2017/056985] - KAMBURU - EMBU - KIBIRIGWI - THIKA 220 KV TRANSMISSION LINE & ASSOCIATED 220/132 KV SUBSTATION WORKS AND 132/66 KV SUBSTATION AT UPLANDS
Kamburu – Embu – Kibirigwi – Thika, e-ProMIS Kenya 056985 Full
Planned Projects
Nairobi Metropolitan Area Infrastructure Report 2018
Chinese Loans to Africa Database
SAIS-CARI Loans China
Kenya Law Weekly Newsletter
Ongoing Projects: Kamburu - Embu - Kibirigwi - Thika
Civil Case E527 of 2020
Third Annual Progress Report 2020/21 On the Implementation of the Third Medium Term Plan (2018-2022) of the Kenya Vision 2030
KETRACO registers big transmission milestones, 2019-2020 Annual Report & Financial Statements, 2018-2019 Annual Report & Financial Statements, 2017/2018 ANNUAL REPORT AND FINANCIAL STATEMENTS 30TH JUNE 2018, (99+) Zhou Chang Bao _ LinkedIn
Rabai – Malindi – Garsen - Lamu Project
ENVIRONMENTAL AND SOCIAL IMPACT ASSESSMENT STUDY REPORT FOR THE PROPOSED RABAI MALINDI GARSEN 220 KV & GARSEN – LAMU 132 KV TRANSMISSION LINES AND ASSOCIATED SUBSTATIONS
The National Treasury Public Debt Management Office Summary Statement 2021/2022
SUMMARY STATEMENT OF PUBLIC DEBT FOR 2020/2021FY IN FOREIGN CURRENCY 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.