China Eximbank provides an unknown amount to an unknown institution for the implementation of the Turbi-Moyale Section of the A2 Highway Upgrading Project
Summary
Funding agency [Type]
Export-Import Bank of China (China Eximbank) [State-owned Policy Bank]
Recipient
Kenya
Sector
Transport and storage (Code: 210)
Flow type
Loan
Level of public liability
Unallocable
Infrastructure
Yes
Category
Project lifecycle
Geography
Description
According to China Eximbank, it provided a loan to support the implementation of the 130 km Turbi-Moyale Section of the A2 Highway Upgrading Project. The borrowing institution is unknown. However, it is known that the proceeds of the loan were to be used by the borrowing institution to finance an RMB 917 million commercial contract with China Wu Yi Co., Ltd. It also known that the African Development Bank (AFDB) issued a parallel loan (co-financing) to the Government of Kenya for this project. The purpose of the project was to upgrade a 130 section of the A2 Highway that runs from Turbi to Moyale. China Wu Yi Co., Ltd. was the general EPC contractor responsible fo implementation. Construction began on November 6, 2012 and was temporarily suspended due to security concerns in 2013. The project was substantially completed by September 14, 2016. However, the upgraded road was not officially commissioned until July 2017. The originally expected project completion date was October 15, 2015. An 11-month extension of implementation time was granted to China Wu Yi Co., Ltd. after an amicable settlement was reached in which it agreed to waive a substantial amount of money due to claims relating to unexpected security costs, higher-than-expected quantities, and project scope revisions.
Additional details
1. The borrowing institution is unknown and the Government of Kenya’s external public debt register does not identify a loan from China Eximbank for the 130 km Turbi-Moyale Section of the A2 Highway Upgrading Project. Therefore, AidData assumes for the time being that the borrowing institution was China Wu Yi Co., Ltd. This issue warrants further investigation. 2. The project title in Chinese is 肯尼亚特比-摩亚雷(A2)公路项目 or 特比-摩亚雷(A2)公路项目.
Number of official sources
12
Number of total sources
34
Details
Cofinanced
Yes
Cofinancing agencies [Type]
African Development Bank (AfDB) (ADB) (BAD) [Intergovernmental Organization]
Direct receiving agencies [Type]
China Wu Yi Company Ltd. [State-owned Company]