China Eximbank provides RMB 575.5 million government concessional loan for 132KV Kenya Power Transmission Expansion Project (KPTEP) (Linked to Project ID#58359)

On April 4, 2017, China Eximbank and the Government of Kenya signed an RMB 575,507,992.10 government concessional loan for 132KV Kenya Power Transmission Expansion Project (KPTEP). The proceeds of the loan were on-lent to a Kenyan state-owned electricity company called the Kenya Electricity Transmission Company Limited (KETRACO). The loan carries a maturity of 18.25 years (final maturity date: July 21, 2035). The ultimate borrower (KETRACO) used the loan proceeds to finance a commercial contract with China Aerospace Construction Group Corporation Limited. Loan disbursements worth RMB 42,233,873.01 took place between July 1, 2020 and June 30, 2021 (Fiscal Year 2020-2021). Loan disbursements worth RMB 90,938,925.44 took place between July 1, 2021 and June 30, 2022 (Fiscal Year 2021-2022). The loan's amount outstanding was RMB 42,233,873.01 as of June 30, 2021 and RMB 133,172,798.45 as of June 30, 2022. The purpose of the project is to construct 210 kilometers of electricity transmission lines, including (1) the construction of a 50 km, double-circuit 132kV Awendo-Isebania transmission line — that runs through Migori — and a new substation in Isebania, (2) the construction of a 120 km, single-circuit 132kV Sultan Hamud-Loitoktok overhead transmission line (OHL) — that runs from Makueni County to Kajiado County in Mashuuru and Oloitokitok Sub Counties — and two associated substations; and (3) the construction of a 40 km, double-circuit 220kV Isinya-Konza transmission line that connects Konza substation to the Isinya substation, thereby ensuring reliable power supply for Konza Technopolis (or the Konza Techno City), which is an innovation hub constituting of technology firms and it is situated on a 5,000-acre piece of land 60 km from the country’s capital city of Nairobi. China Aerospace Construction Group Corporation Limited is the contractor responsible for project implementation. The construction of the Isinya-Konza transmission line commenced on or around November 14, 2019. This project component was originally scheduled for completion by December 2022. The construction of the 120 km, single-circuit 132kV Sultan Hamud-Loitoktok overhead transmission line began in March 2022. As of 2021, the overall project had achieved a 55% completion rate.

Additional details

1. This project is also as Phase 2 of the Kenya Power Distribution System Modernization & Strengthening Project, the Kenya Power Transmission Expansion Project, 210Km 132KV Kenya Power Transmission Expansion Project (KPTEP), the Sultan-Hamud-Loitoktok 120km, 132kV Transmission Line and Associated Sub-stations Project, the 50 km, 132 KV Awendo-Isebania Transmission Line Project, the 40 km, 220 KV Isinya-Konza Transmission Line Project, and the KENYA POWER TRANSMISSION EXPANSION PROJECT: 132KV AWENDO - ISEBANIA, 132KV SULTAN HAMUD - LOITOKTOK & 220KV ISINYA - KONZA Project. 2. Some sources, including SAIS-CARI and Boston University, suggest that a separate, stand-alone China Eximbank loan (or buyer’s credit) in 2019 was issued for the 40 km, 220 KV Isinya-Konza Transmission Line Project. However, AidData has not yet identified any official evidence from the Government of Kenya’s public debt register or e-ProMIS that a 2019 loan agreement was ever signed. This issue warrants further investigation. 3. The Kenya Electronic Project Management Information System (e-ProMIS) project identification number is Ket0012019. The KETRACO project identification number is MOE&P/KPTEP-01-2015. The loan identification number in the Government of Kenya’s external public debt register is 2017014_1. 4. e-ProMIS identifies the loan commitment date as April 4, 2017 rather than May 15, 2017. This issue warrants further investigation. 5. Some sources suggest that the loan was issued in the form of a buyer’s credit (with credit insurance from Sinosure) to finance 85% of the commercial contract between KETRACO and China Aerospace Construction Group Corporation Limited. This issue warrants further investigation. 6. Some sources suggest that the face value of the loan was RMB 677,068,226 ($112,000,000) and it was issued on May 15, 2017. This issue warrants further investigation. 7. The amounts outstanding, disbursements, 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

Number of official sources

19

Number of total sources

36