Chinese Government funds expansion of Moi Teaching and Referral Hospitall

Project narrative

In July 2013, it was announced that China would fund the expansion of the Moi Teaching and Referral Hospital (MTRH) in Eldoret at a cost of about 17 billion Kenyan shilling. In order to receive funding, the hospital was required to hire a Chinese firm to conduct the construction. The new wing of the hospital will house 1000 beds. The hospital signed a deal to engage China Aerospace Construction Group to carry out upgrading and expansion of the facility in October 2012. However, on May 3, 2013, the hospital entered into another deal with China Wu Yi for the same project, without canceling the first. On November 19, 2013, a contract with China Machinery Engineering Corporation (CMEC) for the upgrading of MTRH at a value of USD291 million (about Sh25 billion) was signed. In February 2014, Hospital director John Kibosia told the National Assembly departmental committee on health China failed to approve the Sh25 billion project for funding and the contract would have to be renegotiated or a new financier sought. MTRH and CMEC had entered into the provisional agreement for the construction of a 1,000-bed complex, a four-story car park to accommodate 500 vehicles, a 500-kilowatt-hour solar plant, an incinerator, and access roads. The agreement will expire in August 2014. Dr. Kibosia said a final contract was to be signed after approvals by government officials and after securing a loan from a Chinese bank. The committee questioned the variation in the cost estimates, which CMEC put at Sh25.1 billion ($291.6 million) against MTRH’s Sh17.7 billion ($205.9 million). Dr. Kibosia said MTRH estimates did not include the incinerator, electricity overhaul, fire protection, solar power generation, elevators, survey, and engineering, which would cost Sh7.5 billion Business Daily Africa reports that the Chinese Government ultimately decided to not fund the project. However, Kenya's National Treasury Cabinet Secretary, Mr. Henry Rotich, claims that the Moi Teaching and Referral Hospital project has benefited from Chinese development assistance.