MCC New Financial Product Development Activity

The objective of the Blended Finance for BRT Project is to catalyze financing required for the implementation of the BRT system in a manner that promotes lower greenhouse gas emissions. .The Project aims to support the Nairobi Metropolitan Area Transport Authority (NaMATA) to deliver on the Governments core BRT program and increase the efficiency of public transportation modes by assisting the Government to meet a financing gap or attract private capital needed by the Government to operationalize BRT.

At MCCs sole discretion, MCC funding may support the leasing and maintenance of buses with lower greenhouse gas emissions compared to diesel buses for the BRT Line 2 (the Bus Leasing Option). The Bus Leasing Option is being conducted under Kenyas procurement laws.

If MCC, at its sole discretion, determines that the Bus Leasing Option is not viable, MCC and the Government shall work together to identify other opportunities where MCC could support an alternative BRT financing need, in form and substance satisfactory to MCC.

In identifying a blended finance opportunity, the Parties shall give consideration to: (a) using blended finance to deliver sustainable, market-based solutions to support the BRT system, (b) utilizing Grant funding to support commercial sustainability in the BRT system; (c) supporting Kenyas national climate goals; (d) the allocation of risks among stakeholders; (e) financial and social returns and benefits; and (f) the Programs policy or reform objectives.