Active Mixed AidData Chinese Aid

[Suspended] China Eximbank provides RMB 438 million government concessional loan for Nation Wide Remote Sensing Airborne Geophysical Survey Project

¥438M RMB

Funder	Export-Import Bank of China (China Eximbank)
Recipient Organization	Government of Kenya
Country	Kenya
Start Date	Aug 31, 2017
End Date	Jun 23, 2026
Duration	3,218 days
Number of Grantees	1
Roles	Recipient
Data Source	AidData Chinese Aid
Grant ID	`59392`

Grant Description

[Suspended] China Eximbank provides RMB 438 million government concessional loan for Nation Wide Remote Sensing Airborne Geophysical Survey Project On August 14, 2013, Kenya's Cabinet Secretary for Tourism & Wildlife Najib Balala signed an MOU with Eng Jia Xuetian, President of China's Geological Exploration Technology Institute (GETI) for a nationwide remote sensing, airborne geophysical survey.

A commercial contract was then signed on May 19, 2014 for an aerial survey that was expected to result in the creation of a geological map of Kenya's mineral resources (in order to make it easier for investors to make investments in the mineral sector).

On August 31, 2017, China Eximbank and the Government of Kenya's Ministry of Mining signed an RMB 438,000,000 government concessional loan (GCL) agreement for the Nation Wide Remote Sensing Airborne Geophysical Survey Project. The loan carries a maturity of 17-years (final maturity date: September 21, 2034).

Its other borrowing terms are unknown.

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

In 2023, the amount outstanding for the loan was zero, indicating the loan had never been disbursed, and no repayment was recorded. In the Kenyan Treasury Summary Statement of Public Debt For 2023/2024, the loan was no longer recorded.

The purpose of the project was to undertake multispectral remote sensing, aeromagnetic, and radiometric survey in combination with satellite imagery studies as well as upgrading of geological services in Kenya with a view to determining the mineral potential of the country.

The mapping was to be carried out of the country’s entire area of 582,650 square kilometers using aeromagnetic and radiometric methods after which the geophysical testing will be carried out to verify the resources available.

An aerial survey was supposed to compile a new geological map detailing the occurrence of minerals around the country that would help spur investment in the mining sector.

Part of the components of the airborne survey include; five magnetic maps, five radiometric maps and five electromagnetic maps.

Geological Exploration Technology Institute (GETI) of Jiansu Province was the contractor responsible for project implementation.

However, in 2018, the Kenyan Government froze its contract with GETI after mining stakeholders protested that entrusting the survey to the Chinese could result in manipulated and compromised data. Kenya's National Intelligence Service was then brought onboard to manage, co-ordinate and supervise the project.

This development followed reports from two consulting firms -- UK-based International Geoscience Services (IGS) and the Canadian firm Paterson, Grant & Watson Limited (PGW) -- that GETI was not suited for the job in addition to concerns about data privacy. GETI has reportedly billed the Government of Kenya for 2 billion Ksh, equivalent to 30% of the value of its contract.

Some reports suggest that China Eximbank cancelled its loan agreement with the Government of Kenya in late 2018. However, the loan continued to appear in the Kenyan Public Debt Register until 2024.

Official media sources in China and Kenya extensively covered the launch of the the final report of the nationwide airborne geophysical survey on June 21, 2022.

📋 Staff Comments

The transaction amount was initially recorded as $112 million in the Kenya Electronic Project Monitoring Information System (eProMIS); however, other sources report that the value of the loan agreement was 7 billion Ksh. MOFCOM reports that the face value of the loan was RMB 440 million. AidData relies on the face value of the loan that is recorded in the Government of Kenya’s external public debt register (RMB 438,000,000).
The loan identification number in the Government of Kenya’s external public debt register is 2017041_1.
The Chinese project title is 肯尼亚矿产勘测项目.
In the database of Chinese loan commitments that SAIS-CARI released in 2020 and re-released in 2021, this project is coded as ‘completed’ and the face value of the loan is identified as $68 million.
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=06. 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

[2017/056234] - THE NATION WIDE REMOTE SENSING AIRBORNE GEOPHYSICAL S URVEY PROJECT
Cabinet Secretary for Tourism & Wildlife's twitter
Kenya
China minerals survey spat has sector in a spin
Kenya finally gets sh7bn to conduct mineral survey
Kenya Mineral Survey to Cover Other Natural Resources
Boost Gains
Kenya contracts China to scan for minerals
Chinese firm seeks Sh2bn after mineral deal freeze
ENVIRONMENTAL PROTECTION
WATER AND NATURAL RESOURCES SECTOR REPORT
Kenya in another attempt to carry out mineral survey
MPs query spies role in Sh7 billion mines mapping plan
Chinese lender withdraws Sh7bn mineral survey funding
Govt inks Sh7bn China loan for airborne mineral survey
Corruption unearthed as MPs lock out Chinese firm from mining survey
中资企业有望今年启动肯尼亚矿产勘测项目
Kinyua stops parastatals from taking in new loans
Kenya launches nationwide airborne geophysical survey
Kenyan President unveils final report of nationwide airborne geophysical survey
President Kenyatta Unveils Final Report Of The Nationwide Airborne Geophysical Survey
Kenya mineral survey to cover other natural resources, boost gains
Mapping Kenya’s mineral deposits to end in June
The intelligence services muscle in on the mining survey
Mapping Kenya's mineral deposits to end in June - PS Kamau
Kenya
China minerals survey spat has sector in a spin
China Loans to Africa
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.

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Government of Kenya

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