Active Mixed AidData Chinese Aid

China Eximbank provides $134.9 million buyer’s credit loan for Phase 2 of Technical And Vocational Training Laboratories (TIVET) Project (Linked to Record ID#46982)

$134.97M USD

Funder	Export-Import Bank of China (China Eximbank)
Recipient Organization	Government of Kenya
Country	Kenya
Start Date	Feb 14, 2017
End Date	Jun 19, 2028
Duration	4,143 days
Number of Grantees	1
Roles	Recipient
Data Source	AidData Chinese Aid
Grant ID	`59494`

Grant Description

China Eximbank provides $134.9 million buyer’s credit loan for Phase 2 of Technical And Vocational Training Laboratories (TIVET) Project On February 14, 2017, China Eximbank and the Government of Kenya signed a $134,967,400 buyer’s credit loan (BCL) agreement for Phase 2 of the Technical And Vocational Training Laboratories (TIVET) Project.

📋 Loan / Grant Terms

📅 Maturity16 years

💹 Interest Rate2%

It was scheduled for repayment over 10-years in 20 (equal) semiannual installments (implied grace period: 6-years). The loan is backed by a Sinosure credit insurance policy.

The borrower was expected to use the proceeds of the BCL to finance approximately 85% of the cost of a commercial (EPC) contract [agreement number AVIC/KEZ/13M5077] between the Government of Kenya’s Ministry of Education, Science and Technology (肯尼亚高教部) and Avic International Holding Corporation (中航国际), which was signed on September 5, 2013 and amended on May 25, 2016.

The original cost of the commercial contract was $284,068,659. However, this figure was later revised to $166,618,659 via Addendum No 1 to the contract.

The contract value was then further revised to $158,785,183 via Addendum No 2 dated May 25, 2016, after the Government of Kenya opted to undertake the civil works itself, thereby leaving the supply, installation, and commissioning of the equipment as well as human capacity building to Avic International Holding Corporation.

Loan disbursements worth $1,701,510.65 took place between July 1, 2020 and June 30, 2021 (Fiscal Year 2020-2021). Loan disbursements worth $7,853,131.60 took place between July 1, 2021 and June 30, 2022 (Fiscal Year 2021-2022).

The loan’s amount outstanding was $122,240,957.30 as of June 30, 2020, $123,942,467.95 as of June 30, 2021, and $131,795,599.55 as of June 30, 2022.

Under the project, Avic International Holding Corporation is responsible for equipping 134 institutions of technical, vocational education, and training across the country. 1,500 teachers are to be sent to the field and 150,000 students are to be trained by 2020.

Under the terms of the Government of Kenya's contract with Avic International Holding Corporation, all equipment was to be delivered before the closure of the contract on March 20, 2020.

📋 Staff Comments

Some media sources imply that the scheduled project completion date was 2022.
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.
This project is also known as Technical & Vocational Training Laboratories Project and Phase 2 of the Kenya-China Technical And Vocational Training Laboratories (TIVET) Project. The Chinese project title is 中肯职业教育项目 or 中肯职业教育合作项目 or 肯尼亚职业教育项目 or 肯尼亚职业大中专升级改造项目.
The project identification number in the Government of Kenya’s Electronic Project Monitoring Information System (eProMIS) is 2017/056607. The eProMIS reference identification number is 2017001voc.
The identification number for this China Eximbank loan in the Kenyan National Treasury’s public debt register is 2017010 (2017010_1).
The Kenyan National Treasury’s public debt register identifies the loan’s interest rate as 2%. However, BCLs are typically tether to LIBOR plus a margin. Therefore, this issue warrants further investigation.
Project ID#46982 captures China Eximbank loan for the TIVET project’s first phase.
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=09. This record has been marked as having evidence of financial distress because it was part of the debt restructuring agreement captured in record #92668.

📚 Sources & References

中企助力肯尼亚职业教育发展
Feature: Chinese machines inspire Kenyan youth to pursue quality vocational training
张德江对中航国际中肯职教合作模式“点赞”
Avic to increase investments in Kenya’s education sector
TECHNICAL AND VOCATIONAL TRAINING LABORATORIES PROJECT (TIVET PHASE II)
中航国际的“中肯职业教育合作项目
Chinese companies help Kenya's vocational education develop
中企助力肯尼亚职业教育发展
China helps boost technical, vocational training in Kenya
THE REPORT ON THE EXAMINATION OF THE AUDITOR-GENERAL’S REPORT ON THE FINANCIAL STATEMENTS FOR THE NATIONAL GOVERNMENT FOR THE FINANCIAL YEAR 2016/2017
China supports Kenya in sustainable development
Education CS Wants Technical Institutions Better Equipped
Phase Two of equipping colleges to begin
China helps boost technical, vocational training in Kenya
Chinese machines inspire Kenyan youth to pursue quality vocational training
External-Public-Debt-Register-as-at-End-June-2020.pdf
KENYA BORROWED SH430BN IN FOUR MONTHS
中企助力肯尼亚职业教育发展
肯尼亚职业教育项目：“授人以鱼，不如授人以渔”
肯尼亚项目
中非·案例方案丨肯尼亚职业教育投融资
完成肯尼亚职业大中专升级改造项目所有专业安调及验收工作
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.