Kenya+Infrastructure+Projects

=Chinese Government USD 3.75 billion Loan For Mombasa-Nairobi Railway, Indicates Chinese PNGSM Corresponding Infrastructure Projects Highly Likely To Continue Over The Next Five Years=

Executive Summary:
Kenya's 2012 discovery of oil created the need for a better infrastructure, and Kenya signed a USD 3.75 billion loan for a Mombasa-Nairobi railway with the Chinese government in pursuit of greater Chinese investment in Kenya, indicating that more corresponding PNGSM infrastructure projects will highly likely continue over the course of the next five years. Kenya especially wants to use this new deal to enlist China's help in the USD 25.5 billion Lamu project, connecting trade routes between Sudan and Ethiopia to the Indian Ocean. Other corresponding PNGSM projects such as the ICBC Bank of China in October 2013 providing USD 80 million to Triumph Kenya to build a USD 108 million 83 MW heavy fuel power station are likely to emerge as Kenya develops its resources.

Discussion:
Kenya's 2012 discovery of oil created the need for a better infrastructure, and Kenya signed a USD 5 billion development deal with the Chinese government in pursuit of greater Chinese investment in Kenya, indicating that more corresponding PNGSM infrastructure projects will highly likely continue over the next five years. Projects like the September 2013 Mombasa-Nariobi rail line, where USD 2.5 billion will be exclusively for the standard gauge railway construction and the other USD 1.25 billion will be for rolling stock including trains and wagons.

Other projects also fall in line with Kenya's increased attempts to bring China aid to Kenya's infrastructure. ICBC is providing USD 80 million to Triumph Kenya to build a USD 108 million 83 MW heavy fuel oil power plant station in Kenya to help reach its goal of 5,000 MW by 2017. The Lamu port is attempting to get a USD 25.5 billion upgrade, and Kenya want Chinese investors to take part. China extended a USD 14 million grant to link the Kenyan coast to Southern Sudan and Ethiopia via development of a second port at Lamu and a separate pipeline to export oil. Other corresponding oil projects like the project involving China Petroleum Technology and Development Corporation and the China Railway Number 2 Engineering Gourp Ltd., who will construct an offshore refinery in Mombasa and upgrade the oil pipelines in the area in September 2013.

Miscellaneous infrastructure Projects
 * **Date** || **Price (USD)** || **Location** || **Key Chinese Companies Involved** || **Description** || **Corresponds To** ||
 * Unknown || 108 million || Kenya || ICBC || Debt financing package for the construction of an 83 MW power plant in Kenya || Misc. ||
 * September 2013 || 900 million || Kenya || Chinese Government || Generate 5,000 MW by 2017 || Misc. ||
 * 2012 || Unknown || Adams-Karen-Ngong-Bomas Road || China EXIM Bank || Construction of the southern by-pass road project || Misc. ||
 * 2012 || 71 million || 36 Kenyan Districts and 8 major towns || China EXIM Bank || Construction of national fiber optic infrastructure and e-government projects through eight major towns and 36 districts || Misc. ||
 * 2011 || 210 million || Southern Bypass Road || China EXIM Bank || Concessionary loan to Kenya to implement the 30 km Southern Bypass road project || Misc. ||
 * 2010 || 0 || Western Province and the Rift Valley Province || Chinese Government || Approximately 13.5 km of the road is to be repaired while the contractor will add a new 6.3 km of road free of charge || Misc. ||
 * 2012 || 156.39 million || Nairobi-Thika road Section three || China EXIM Bank, Shenli, Sinohydro Corp, and China Wu Yi || Construction of three of the eight-lane highway, flyovers, and underpasses || Misc. ||
 * 2010 || 93 million || Kenya's Rift Valley || China EXIM Bank || Develop a 140 megawatt geothermal plant, specifically through drilling 26 steam production wells at the Olkaria IV geothermal field in Kenya’s Rift Valley || Misc. ||

**Analytic Confidence: **
Analytic confidence for this assessment is moderate. Source reliability ranges from medium to high. There is no conflict between sources. The analyst had low expertise, worked alone but collaborated with a team, and did not use structured analytic methods. The subject is moderately complex and the deadline was moderately difficult to meet.


 * Analyst**: David Bott