China Eximbank provides RMB 161 million government concessional loan for Phase I of Kenya Power Distribution System Modernization Project (linked to Project ID#16392, #58359)

On January 23, 2006, China Eximbank signed an RMB 161,028,810 government concessional loan (GCL) agreement [CHINA EXIMBANK No GCL 2006(02)(144) 2006007 according to Kenya's 2012 External Debt Report] with Kenyan Minister of Finance David Mwarira for Phase 1 of the Kenya Power Distribution System Modernization and Strengthening Project. This project is also known as the Chemositsit-Kisii-Meru Power Distribution Project and the Chinese project title is 肯尼亚城网改造项目一期工. This loan was the result of an August 2005 agreement between President Mwai Kibaki of Kenya and President Hu Jintao of China on the provision of concessional loans by China to Kenya. The terms of the loan are as follows: 2% interest rate, 6 year grace period, 20 year maturity. The loan is to be repaid from 23.09.2012 to 23.09.2025. The Government of Kenya, in turn, on-lent the vast majority of the proceeds of the loan (RMB 154,835,394) to the state-owned enterprise, Kenya Power and Lighting Company (KPLC) at a 2.5% interest rate. Under this project, the KPLC sought to connect 150,000 new power consumers every year. The project involved the construction of a 61 km 132kV line from Chemosit to Kisii substation, and the construction of a 122 km 132kV line transmission line that connects the Kamburu hydropower substation to Meru. China CAMC Engineering Co. Ltd. (CAMCE) was the contractor. The project was initiated in July 2007. It was completed on November 24, 2010. See Project ID#16392 for Phase II of the project.Project #58359 captures a Chinese fund of 41,182,400 USD for this project in 2012.

Number of official sources

8

Number of unofficial sources

5