Active Mixed AidData Chinese Aid

[Suspended] China Eximbank provides $319.8 million loan — via EPC+F arrangement — for 400KV Gilgil-Thika-Nairobi East-Konza Transmission Line, 400KV Loiyangalani-Marsabit Transmission Line & 220KV Isiolo-Marsabit Transmission Line Construction Project

$319.83M USD

Funder	Export-Import Bank of China (China Eximbank)
Recipient Organization	China International Water and Electrical Corporation (CWE)
Country	Kenya
Start Date	May 16, 2017
End Date	Jan 03, 2028
Duration	3,884 days
Number of Grantees	1
Roles	Recipient
Data Source	AidData Chinese Aid
Grant ID	`92158`

Grant Description

[Suspended] China Eximbank provides $319.8 million loan — via EPC+F arrangement — for 400KV Gilgil-Thika-Nairobi East-Konza Transmission Line, 400KV Loiyangalani-Marsabit Transmission Line & 220KV Isiolo-Marsabit Transmission Line Construction Project On May 12, 2015, China International Water & Electric Corporation and the Government of Kenya’s Ministry of Energy and Petroleum signed a Memorandum of Understanding (MOU) on the 400KV Gilgil-Thika-Nairobi East-Konza Transmission Line, 400KV Loiyangalani-Marsabit Transmission Line & 220KV Isiolo-Marsabit Transmission Line Construction Project.

Then, on May 16, 2017, China Eximbank, China International Water & Electric Corporation (CWE) and the Government of Kenya signed a $319,827,810 Engineering, Procurement, Construction and Financing (EPC+F) agreement for the 400KV Gilgil-Thika-Nairobi East-Konza Transmission Line, 400KV Loiyangalani-Marsabit Transmission Line & 220KV Isiolo-Marsabit Transmission Line Construction Project.

The loan carries a 16.25-year maturity (final maturity date: July 21, 2033).

📋 Loan / Grant Terms

💰 Loan Amountare unknown

However, it is known that the borrower was expected to use the loan proceeds to finance approximately 86% of the cost of a $370,048,000 commercial (EPC) contract between China International Water & Electric Corporation and the Government of Kenya’s Ministry of Energy and Petroleum, which was signed on May 26, 2016.

The loan did not disburse between July 1, 2020 and June 30, 2021 (Fiscal Year 2020-2021). Nor did it disbursed between July 1, 2021 and June 30, 20220 (Fiscal Year 2021-2022. There was no amount outstanding under the loan 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 is to construct (1) a 250 km, 400KV transmission line from Gilgil to Konza via Thika and Nairobi East (‘Lot 1’); (2) a 180 km, 400KV transmission line from to Loiyangalani to Marsabit (‘Lot 2’); and (3) a 306 km, 220KV transmission line from Isiolo to Marsabit (‘Lot 3’).

Lot 1 involves the construction of a 250 km, 400kV transmission line in (3) sections: (a) a 113 km Gilgil-Thika section that originates from Gilgil and terminates at Thika and traverses Nakuru, Nyandarua and Kiambu counties, (b) a 21 km Thika-Nairobi East section that originates from a proposed substation located along Nairobi-Thika highway and between Juja and Thika town, and (c) a 65 km Nairobi East-Konza section originates from Malaa and runs through Machakos county to Konza Lot 2 involves the construction of a 180 km, 400KV transmission line from a proposed substation in Loiyangalani, Marsabit County to a proposed substation in Hula Hula.

The line traverses through the Chalbi desert and Hula Hula and Kargi (two locations in Laisamis Sub-county).

Lot 3 involves the construction of a 224 km double single circuit 220 kV overhead transmission line interconnection from a proposed 400 kV/220 kV Marsabit Substation to a proposed 220/132kV Isiolo substation.

It also involves the construction of 20 km single circuit 132kV overhead transmission line interconnection from a proposed 220/132kV Isiolo Substation to an existing 132 kV Isiolo Substation. China International Water & Electric Corporation is the contractor responsible for project implementation. As of April 2022, AidData had not identified any evidence of project implementation.

📋 Staff Comments

This project is also known as the Kenya Power Transmission Improvement Project and the Kenya Transmission Line Project. The Chinese project title is 肯尼亚输变电项目 or 肯尼亚输变电工程.
The Kenya Electronic Project Management Information System (e-ProMIS) project identification number is 2017/056988. The E-ProMIS project reference number is TRANS0032017. The loan identification number in the Government of Kenya’s external public debt register is 2017033_1.
Under most EPC+F contractual arrangements, a loan is extended to the EPC contractor but with a sovereign guarantee from the host government. Therefore, AidData assumes that the loan issued to CWE is backed by a repayment guarantee from the Government of Kenya (i.e. a sovereign guarantee). According to one official source (https://www.nema.go.ke/images/Docs/EIA_1330-1339/ESIA_1335%20%20Report%20for%20Gilgil-Thika-Nairobi%20East-Konza%20400kv%20T-Line_Feb.2017.pdf), ‘the project will be executed on EPC+F basis with financing from Chinese banks.’ 4. 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 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

KENYA ELECTRICITY SECTOR INVESTMENT PROSPECTUS 2018 - 2022
Planned Projects
ESIA STUDY REPORT
Updated Least Cost Power Development Plan, e-ProMIS Kenya
ENYA POWER TRANSMISSION IMPROVEMENT PROJECT: 400KV GILGIL – THIKA – NAIROBI EAST - KONZA, 400KV LOIYANGALANI – MARSABIT & 2 20KV ISIOLO – MARSABIT
SAIS-CARI Loans China
ENVIRONMENTAL AND SOCIAL IMPACT ASSESSMENT FOR PROPOSED MARSABIT - ISIOLO 220kV POWER TRANSMISSION LINE
ENVIRONMENTAL AND SOCIAL IMPACT ASSESSMENT FOR PROPOSED LOIYANGALANI-MARSABIT 150KM, 400KV TRANSMISSION LINE
公司成功签署肯尼亚输变电项目商务合同
肯尼亚输变电项目推介
肯尼亚输变电工程项目融资协议签署中国长江三峡集团有限 vnsc 威尼斯城官网 vnsc 威尼斯城官网 - 威尼斯城 vnsc 登录平台
The National Treasury Public Debt Management Office Summary Statement 2021/2022
SUMMARY STATEMENT OF PUBLIC DEBT FOR 2020/2021FY IN FOREIGN CURRENCY
ENVIRONMENTAL AND SOCIAL IMPACT ASSESSMENT FOR PROPOSED GILGIL – THIKA -NAIROBI EAST – KONZA 400KV POWER TRANSMISSION LINE 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.

All Grantees

China International Water and Electrical Corporation (CWE)

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