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Overview

China Eximbank provides RMB 584 million government concessional loan for 247 km Garsen-Bura-Hola-Garissa Electricity Transmission Line Construction Project

Commitments (Constant USD, 2023)$100,330,772
Commitment Year•2012Country of Activity•KenyaDirect Recipient Country of Incorporation•KenyaSector•EnergyFlow Type•Loan

Status

Project lifecycle

Pipeline: Commitment

Pipeline: PledgePipeline: CommitmentImplementationCompletion

Timeline

Key dates

Commitment date
Jul 12, 2012
Start (planned)
Jul 1, 2013
Start (actual)
Nov 25, 2020
End (planned)
Jun 30, 2016

Geospatial footprint

Map overview

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The purpose of the project is to construct a 247 km, 220kV single circuit transmission line from Garsen to Garissa via Bura and Hola as well s 220kV/33kV substations at Hola, Bura, and Garissa. The targeted beneficiaries of the project are in Tana River and Garissa County. More detailed locational information can be found at the following links: https://www.facebook.com/KETRACO/posts/5350160605009396 https://www.africa-energy.com/article/kenya-garsen-hola-garissa-line-starts-construction Garsen to Garissa: https://www.openstreetmap.org/directions?engine=fossgis_osrm_car&route=-2.2652%2C40.1119%3B-0.4479%2C39.6399 Hola Substation: https://www.openstreetmap.org/way/862439074 Bura Substation: https://www.openstreetmap.org/way/772759808 Garissa Substation: https://www.openstreetmap.org/way/696704120

Stakeholders

Organizations involved in projects and activities supported by financial and in-kind transfers from Chinese government and state-owned entities

Ultimate beneficial owners

At least 25% host country ownership

Funding agencies

State-owned Policy Banks

  • Export-Import Bank of China (China Eximbank)

Receiving agencies

Government Agencies

  • Government of Kenya

Implementing agencies

State-owned companies

  • China CAMC Engineering Co., Ltd. (CAMCE)
  • Kenya Electricity Transmission Company Limited (KETRACO)

Loan desecription

China Eximbank provides RMB 584 million government concessional loan for 247 km Garsen-Bura-Hola-Garissa Electricity Transmission Line Construction Project

Interest type•Unknown

Narrative

Full Description

Project narrative

On July 12, 2012, China Eximbank and the Government of Kenya’s National Treasury signed an RMB 584 million government concessional loan (GCL) agreement for the 247 km Garsen-Bura-Hola-Garissa Electricity Transmission Line Construction Project. The borrowing terms of the loan are unknown. However, it is known that the proceeds of the loan were on-lent to a Kenyan state-owned electricity company called the Kenya Electricity Transmission Company Limited (KETRACO). The ultimate borrower (KETRACO) used the loan proceeds to finance a commercial contract with China CAMC Engineering Co. Ltd. The purpose of the project is to construct a 247 km, 220kV single circuit transmission line from Garsen to Garissa via Bura and Hola as well s 220kV/33kV substations at Hola, Bura, and Garissa. The targeted beneficiaries of the project are in Tana River and Garissa County. China CAMC Engineering Co. Ltd. is the contractor responsible for implementation. Construction began on November 25, 2020. By the end of 2021, the project had achieved a 50 percent completion rate. The project was originally scheduled to commence on July 1, 2013 and reach completion on June 30, 2016.

Staff comments

1. This project is also known as 247 km 220KV Garsen-Hola-Garissa Transmission Line and Associated Sub-stations Project, the Garsen Hola Garissa Project, and the Kenya Power Distribution System Modernization and Strengthening Project Phase II (Lot 2). 2. The KETRACO project identification number is MOE-CAMCE-01-20123. The Kenya Electronic Project Management Information System (e-ProMIS) project identification numbers are 2012/053884 and 2017/056524 and reference identification numbers are KETRACO-012 EN0012017. 3. The face value of the loan is identified as $112 million in the Kenya Electronic Project Management Information System (e-ProMIS). 4. e-ProMIS includes two separate records for the 247 km Garsen-Bura-Hola-Garissa Electricity Transmission Line Construction Project: a loan commitment on July 12, 2012 and a loan commitment on January 2, 2017. This issue warrants further investigation. 5. This record has been marked as having evidence of financial distress because it was subject to DSSI.