Narrative
Full Description
Project narrative
On August 1, 2009, China Eximbank and the Government of Kenya signed an RMB 636,600,105.57 government concessional loan (GCL) agreement the Government of Kenya for Phase 2 of the Kenya Power Distribution System Modernization Project. The face value of the loan was subsequently revised to RMB 612,115,487.54. The borrowing terms of the loan were as follows: a 2% interest rate, a 7 year grace period, and a 20 year maturity (final maturity date: September 21, 2029). The borrower was expected to use the proceeds of the loan to finance a $100 million commercial (EPC) contract between the Government of Kenya and China CAMC Engineering Co., Ltd., which was signed in 2007. The borrower made principal repayments worth RMB 24,484,619.40 between July 1, 2020 and June 30, 2021 (in Fiscal Year 2020-2021) and RMB 48,969,238.84 between July 1, 2021 and June 30, 2022 (in Fiscal Year 2021-2022). The loan’s amount outstanding was RMB 465,207,769.34 as of June 30, 2020, RMB 416,238,530.42 as of June 30, 2021, and RMB 367,269,291.49 as of June 30, 2022 The project involved the construction of 328 km, 220kV single circuit transmission line from Rabai to Lamu via Malindi and Garsen, as well as the construction of substations at Malindi, Garsen, and Lamu. China CAMC Engineering Co., Ltd. was the general EPC contractor responsible for project implementation. Parson Brinckerhoff of the UK was also involved as a subcontractor. Project officially commenced on November 29, 2011. On March 22, 2014, the Rabai-Malindi 220kV 124km HV transmission line and Malindi 220kV substation achieved grid connection. The project was formally completed on March 25, 2014. Then, on June 17, 2014, a project handover certificate was signed.
Staff comments
1. In the database of Chinese loan commitments that SAIS-CARI released in July 2020, it does not record the lending terms for this China Eximbank loan. AidData obtained the lending terms (2% interest rate, 7 year grace period, 20 year maturity) from the Government of Kenya's public debt register. AidData records the commitment year as 2009 in line with the Government of Kenya's external public debt register. 2. The KETRACO project identification number is KET/2/9/4/72. The Kenyan Government loan identification number is 2009012. 3. This project is also known as Phase 2 of the Kenya Urban Power Grid Upgrading Project, the Kenya Power Distribution System Modernization and Strengthening Phase II Lot 1, the Rabai-Malindi-Garsen-Lamu Project, and Phase II Lot-1 Project Rabai-Malindi 220kV 124km HV Transmission Line and Malindi 220kV Substation Project. The Chinese project title is 肯尼亚城市电网改造项目二期项目. 4. According to Kenya Electronic Project Management Information System (e-ProMIS), the Chinese Government issued another $41,182,400 loan for the Kenya Power Distribution System Modernization Project in February 2012 (see Record ID#58359). However, it is unclear if this commitment was ever finalized and if it provided supplemental funding for the project’s first phase (captured via Record ID#1043) or second phase (captured via Record ID#16392). The project identification and reference numbers in the Kenya Electronic Project Management Information System (e-ProMIS) are 2012/053905 and KPLC010, respectively. The loan identification number in the Government of Kenya’s external public debt register is 2017037_1. 5. At least one official source identifies the original face value of the loan as RMB 637,000,000 rather than RMB 636,600,105.57. 6. The amounts outstanding 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=0