Tanzania's SGR third phase Makutupora-Tabora is about to be launced

[Vyamavingi]

Standard chartered Bank n Exim bank offer the same stuff.

Exim Bank of China
Financial services company
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The Export–Import Bank of China is one of three institutional banks in China chartered to implement the state policies in industry, foreign trade, diplomacy, economy, and provide policy financial support so as to promote the export of Chinese products and services.

Standard Chartered
Financial services company
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sc.com
Standard Chartered PLC is a British multinational banking and financial services company headquartered in London, England. It operates a network of more than 1,200 branches and outlets across more than 70 countries and employs around 87,000 people. Wikipedia


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Ni maamdishi tu hayo, Geza.

Sina imani na benki binafsi za mabeberu. Hata Nyerere hakuwa na imani nazo, ndio maana aliziamuru zifungashe virago na kuondoka nchini, alifahamu bayana hazipo kwa maslahi yetu.

Vv

 

[REDEEMER.]

Nimemshangaa sana Geza, sikutegemea kuleta na kutetea hilo humu JF. Tatizo lake kubwa, yeye anawaza kupambana na Wakenya tu, hata nilipotoa comment yangu ya kwanza aliijibu kwa mripuko, nadhani alifikiri nami ni Mkenya pia.

Vv

Sasa wewe unataka free money au vipi? Nani kakuambia kuna Taifa linatoa pesa kugharimia miradi ya kiuchumi kwenye Taifa lingine bila kupitia bank?

 

[Vyamavingi]

Sasa wewe unataka free money au vipi? Nani kakuambia kuna Taifa linatoa pesa kugharimia miradi ya kiuchumi kwenye Taifa lingine bila kupitia bank?

Sina imani na Multi National Commercial Banks, hasa hizo benki za watu binafsi za magharibi.

Vv

 

[Geza Ulole]

Ni maamdishi tu hayo, Geza.

Sina imani na benki binafsi za mabeberu. Hata Nyerere hakuwa na imani nazo, ndio maana aliziamuru zifungashe virago na kuondoka nchini, alifahamu bayana hazipo kwa maslahi yetu.

Vv

Pitia hapa uskie jinsi Mchina anavyomfanya Mkenya


Halafu soma hii

SGR loan payments to triple to Sh83bn next year
Loan repayments to China will triple from July next year as the five-year grace period that Beijing extended to Kenya in May 2014 for SGR funds comes to an end.

Past construction works of the standard gauge railway. FILE PHOTO | NMG

By CONSTANT MUNDA
More by this Author


IN SUMMARY

• Kenya in May 2014 entered into a deal to borrow $3.233 billion loan (Sh324.01 billion) from China’s Exim Bank, comprised of $1.633 billion commercial loan and $1.6 billion concessional to build a 385km modern railway between Mombasa and Nairobi.

• The loan, whose interest is 3.6 percentage points above the six months average of London Inter Bank Offered Rate (Libor) which serves as an international benchmark, is to be repaid in 15 years with a grace period of five years.

Loan repayments to China will more than triple from July next year as the five-year grace period that Beijing extended to Kenya in May 2014 for the standard gauge railway (SGR) funds comes to an end, Treasury data shows.

Nairobi will pay Chinese State-owned lenders nearly Sh82.85 billion in the year starting July next year from Sh26.61 billion in the current year ending June, and Sh36.24 billion the following year from July.

Kenya in May 2014 entered into a deal to borrow $3.233 billion loan (Sh324.01 billion) from China’s Exim Bank, comprised of $1.633 billion commercial loan and $1.6 billion concessional to build a 385km modern railway between Mombasa and Nairobi.

The loan, whose interest is 3.6 percentage points above the six months average of London Inter Bank Offered Rate (Libor) which serves as an international benchmark, is to be repaid in 15 years with a grace period of five years.

Treasury data tabled in the National Assembly last Wednesday shows principal payments to Exim Bank of China — the main SGR financier — will shoot to nearly Sh34.8 billion in the financial year 2019/20 from Sh6.07 billion this fiscal year, and Sh8.39 billion in 2018-19.

READ: China takes up lion’s share of debt spend

Debt redemption to China Development Bank, another key financier of Kenya’s infrastructure projects, will surge to Sh18.27 billion in 2019/20 from Sh757.76 million this year and Sh1.68 billion in the year which starts in July.

President Uhuru Kenyatta’s administration has largely contracted debt from China since 2014 to build much-needed roads, bridges, power plants and the SGR.

This started after Kenya became a lower middle income economy, locking her out of highly concessional loans from development lenders such the World Bank Group.

China’s influence on the country’s infrastructure development, however, started in earnest with construction of the Thika Superhighway between January 2009 and November 2012 at a cost of nearly Sh32 billion during the last term of President Mwai Kibaki.

The deal to fund the first phase of the SGR, Kenya’s single largest infrastructure project by cost since independence, saw Beijing overtake Tokyo as Kenya’s largest bilateral lender.

Construction of the Mombasa-Nairobi SGR cost about Sh692 million per kilometre (km), while the $1.5 billion for the extension to Naivasha is estimated at about Sh1.28 billion per km.

READ: China remains Kenya’s top lender at Sh520bn

Passenger fares on the SGR are set to rise to Sh1,000 a seat, from the promotional Sh700 during the launch last June, to help cover the costs of the SGR line operated by China Communications Construction Company.

Debt repayments (Sh82.85 billion) to Beijing will account for a third of the Sh274.24 billion that Kenyan projects will be due to foreign lenders in 2019-20.

This will rise to nearly Sh95.2 billion in 2020-21 and Sh120.12 billion in 2021-22, assuming the debt obligations to Beijing will remain constant even with contraction of new loans from Beijing, the Treasury data shows.

READ: Kenya dismisses US concerns over mounting Chinese loans

China’s debt stock to Nairobi has since surged nearly two and a half times to $5.2 billion (Sh521.38 billion) by last December from $2.22 billion (Sh222.60 billion) in January, dethroning the World Bank Group as Kenya’s largest lender.

Consultancy Deloitte said in the Africa Construction Trends Report 2017, released in Nairobi last February , that China was the “most prolific funder of large-scale” projects, building one in four projects in East Africa.

https://www.businessdailyafrica.com...-next-year/539546-4548046-11f8wt4z/index.html

 

[REDEEMER.]

Sina imani na Multi National Commercial Banks, hasa hizo benki za watu binafsi za magharibi.

Vv

Kila kitu ni negotiations and project viability sanasana nchi hua inaweka role of custody na warranty tu kwenye hiyo mikopo kwenda Taifa lingine ila lazima kuna kuwa na interest vile vile kama bank imehusishwa.

Tena miradi kama hiyo ndio inakua na masharti Magumu kama mkandarasi na services nyingine zitoke tu kwenye hilo Taifa ambalo ni Guardian wa huo mkopo hapo ndipo kuna kua na ukoloni mwingine kama huu

Hapo mchina is controlling everything japo in reality hiyo ni pesa ya. Mkenya

 

[Vyamavingi]

Pitia hapa uskie jinsi Mchina anavyomfanya Mkenya

Ndio maana awali nikizungumzia Taasisi kama AfDB, World Bank na IMF. Hizi taasisi haijawahi kutokea kufanya hayo ya Benki Binafsi za Biashara au kama hayo wanayodaiwa kuyafanya Wachina kule Zambia.

Vv

 

[Geza Ulole]

Ndio maana awali nikizungumzia Taasisi kama AfDB, World Bank na IMF. Hizi taasisi haijawahi kutokea kufanya hayo ya Benki Binafsi za Biashara au kama hayo wanayodaiwa kuyafanya Wachina kule Zambia.

Vv

Umesoma nilipo-highlight red? Umeona standard benchmark on interest rate in comparison to loan issued to Kenya by China's Eximbank? Uache kuropoka acha wakina Mpango wapiganie maslahi ya Taifa!

Pitia hapa kujifahamisha zaidi!


“The Chinese will readily offer you infrastructure loans, but you will only start feeling the pinch when the time for servicing the debt comes calling—and you realize that your economy is not raising enough dollars to repay it,” wrote Kisero. He added that Kenya must pay back about $258 million in debt to China in 2018, and about $814 million next year, citing data from Kenya’s National Treasury.

Kenyans Wary of China’s One Belt, One Road Investments

 

[Geza Ulole]

Ndio maana awali nikizungumzia Taasisi kama AfDB, World Bank na IMF. Hizi taasisi haijawahi kutokea kufanya hayo ya Benki Binafsi za Biashara au kama hayo wanayodaiwa kuyafanya Wachina kule Zambia.

Vv

Kingine Standard Chartered Bank wametupa concession loan na si commercial loan. FYI in concession loans interest rates are much lower.

Tanzania secures 1.46 bln USD loan for SGR construction - Xinhua | English.news.cn

 

[Bantugbro]

Ni maamdishi tu hayo, Geza.

Sina imani na benki binafsi za mabeberu. Hata Nyerere hakuwa na imani nazo, ndio maana aliziamuru zifungashe virago na kuondoka nchini, alifahamu bayana hazipo kwa maslahi yetu.

Vv

Mkuu,

Mosi, terms za mkopo wa concessional ni tofauti na terms za mkopo wa commercial, structure za interest rate and muda wake wa malipo ziko tofauti sana, concessional loans ni nzuri kwenye infrastructure projects.

Pili, kwenye mikopo hua hiajalishi umekopa China au Uingereza, kumbuka siku hizi taasis za kifedha toka Eastern na Western block countries zinashindana kutoa terms nzuri za mikopo yao.

Tatu, pia kitu kingine ambacho kinatofautisha ni kwamba Tanzania inapewa rates nzuri za mikopo kwa sababu wamedemonstrate kuwa na uwezo wa kujenga phase one ya SGR wenyewe bila kungojea mkopo, which means they are credit worthy! hii ni tofauti na wale wanaokwenda kuomba kila kitu bure 100%....huge statement!

Sasa hii ni kama pale unapokwenda benki halafu kuomba mkopo halafu wanakwambia weka 10% advance kabla, halafu mtu mwingine anakwenda benki hiyohiyo kuomba mkopo huohuo lakini anapewa 100% bila kuweka 10% advance.

Lastly, hao Standard chattered bank hii sio mara yao ya kwanza kukopesha hizo nchi zetu ktk infrastructure projects, toka siku nyingi hua wanazo credit facilities za namna hio. Jaribu kufanya uchunguzi kidogo tu utaona.

 

[JokaKuu]

..swali la kujiuliza ni kama nchi za EAC zinahitaji SGR mbili au moja kuzihudumia.

..na nini kitatokea ikiwa SGR ya Tanzania itafika Mwanza na kuweza kuhudumia Uganda, kabla SGR ya Kenya haijafika Kisumu.

Geza Ulole, Mwanzi1

 

[Geza Ulole]

..swali la kujiuliza ni kama nchi za EAC zinahitaji SGR mbili au moja kuzihudumia.

..na nini kitatokea ikiwa SGR ya Tanzania itafika Mwanza na kuweza kuhudumia Uganda, kabla SGR ya Kenya haijafika Kisumu.

Geza Ulole, Mwanzi1

Market forces will decide! Ila for sure after both r completed, competition will move to another stage i.e. price wars on who offers inland transport services at most affordable price n fastest!

The game will be at price reduction to win more cargo. I guess there u have a rigid answer who the winner is as JPM has a clear advantage.

First his electrical SGR is free from global oil prices, aside the fact his about to be launched 2100 MW Stieglers Gorge hydropower project will assure power availability n further lower the already lowest price per unit in the region.

SGR Kenya can't go below a certain limit considering the obligation they have towards that blotted Chinese loan, they will have to part with $850 mln per each year starting next year an official lapse of grace period.

 

[Geza Ulole]

Mkuu,

Mosi, terms za mkopo wa concessional ni tofauti na terms za mkopo wa commercial, structure za interest rate and muda wake wa malipo ziko tofauti sana, concessional loans ni nzuri kwenye infrastructure projects.

Pili, kwenye mikopo hua hiajalishi umekopa China au Uingereza, kumbuka siku hizi taasis za kifedha toka Eastern na Western block countries zinashindana kutoa terms nzuri za mikopo yao.

Tatu, pia kitu kingine ambacho kinatofautisha ni kwamba Tanzania inapewa rates nzuri za mikopo kwa sababu wamedemonstrate kuwa na uwezo wa kujenga phase one ya SGR wenyewe bila kungojea mkopo, which means they are credit worthy! hii ni tofauti na wale wanaokwenda kuomba kila kitu bure 100%....huge statement!

Sasa hii ni kama pale unapokwenda benki halafu kuomba mkopo halafu wanakwambia weka 10% advance kabla, halafu mtu mwingine anakwenda benki hiyohiyo kuomba mkopo huohuo lakini anapewa 100% bila kuweka 10% advance.

Lastly, hao Standard chattered bank hii sio mara yao ya kwanza kukopesha hizo nchi zetu ktk infrastructure projects, toka siku nyingi hua wanazo credit facilities za namna hio. Jaribu kufanya uchunguzi kidogo tu utaona.

Pia Mchina huyohuyo ni shareholder Standard Chartered Bank. BTW umenifurahisha Kwa mfano murua yule anayeenda na kuomba mkopo 100% bila credit worthiness proof, hapo risk factor cushioning/coverage is immense. Na ndipo hapo Mkenya alifanywa sasa anaomba poo!