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

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.

Additional details

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.

Number of official sources

13

Number of total sources

16