Why Kenya may have got short end of the stick in SGR locomotives deal

[Mwanzi1]

Naskia kuna watu wametumia cash $500 million kununua pangaboy alafu wanaenda kuomba omba $200Million kutoka kwa world bank ili kulipa madeni ya campuni ya umeme....Hahahahahahah ...... backward nation

Wanomba au wankopa, it two different things. lakini si afadhi sisi tunakopa na pesa inaonekana inakwenda wapi. How about that Euro Bond? Wanasema eti they have to float another bond to pay(where about unknown) the current bond by 2019. [HASHTAG]#WhereIsEuroBoand[/HASHTAG]

 

[Kafrican]

Kenya Power procures Sh50 billion loan to refinance its debt

By BRIAN NGUGI, bnjoroge@ke.nationmedia.com
Posted Wednesday, June 29 2016 at 14:32

Kenya Power has procured a Sh50 billion ($500 million) long-term syndicated loan to refinance its existing loans.
The facility, signed between the NSE-listed electricity distributor and Standard Chartered Bank, is in two tranches including a Sh35 billion loan comprising a ten-year tenor guaranteed by the World Bank (through the International Development Association) and Sh15.1 billion having a seven-year tenor.
“The proceeds of the facilities will be applied towards refinancing Kenya Power’s existing commercial loan facilities,” said the power utility in a statement, adding that the loans will have a two year grace period followed by equal semi-annual repayments.

The State utility said the loans would enable it reduce its total financing costs, extend maturities beyond existing terms and improve its liquidity position.

“They will harmonise documentation (including financial undertakings) and further improve KPLC’s ability to fund future capital expenditure through internal sources,” it added.

Standard Chartered Bank was the lead arranger for the hybrid financing.

Kenya Power procures Sh50 billion loan to refinance its debt

Haujaelewa point yangu.... hebu nikuulize, sasa ni wapi umeona kenya ikitumia cash kununua ndege au kuwekeza kwa project ambayo haina impact kubwa kwa wananchi wa kawaida?????

pia unafaa uelewe model ya kampuni za kenya zenye umiliki wa kiserekali (parastatles)...

Alafu tofauti ya loan ya tanesco na hii umeweka hapo juu ni kwamba KenyaPower walichukua loan ya WB ambayo inalipwa polepole, ili kulipa maloni ilioyachukua kwa benki za kenya ili kushukisha interest rate za kenya.....

“We are getting a $500 million loan (Sh45 billion) from the World Bank to clear loans held by Kenya Power so that we can lower the interest cost,” said Energy secretary Davis Chirchir in an interview.

The local banks are Equity Bank, Commercial Bank of Africa (CBA), Standard Chartered Bank, Co-operative Bank and Barclays Bank.

Kenya Power owes Equity Sh7.44 billion, CBA Sh2.75 billion, Standard Chartered Sh6.65 billion, Co-operative Bank Sh4.5 billion and Barclays Sh6 billion. South Africa’s Fast Rand Bank is owed Sh13.54 billion.

The utility firm borrowed an additional Sh10.35 billion from Standard Chartered after the June annual report on which the above figures are based, raising the total owed to the lender to Sh17 billion.

READ: Kenya Power secures Sh17b loan for infrastructure upgrade

Mr Chirchir said reducing the interest rate on these loans is one among a raft of measures the ministry will embark on to lower the cost of energy. He added that the saved costs will amount to about Sh1.5 billion annually.

It is understood that the World Bank will charge Kenya Power an interest rate of about two per cent per annum, a cost that is significantly lower than the commercial rates charged by banks.
Banks lose out as Kenya Power gets Sh45bn to pay loans

lakini tanesco inaomba loan kwasababu inashindwa kulipa madeni ilio nayo ndo maana hata world bank imekataa kuwapa dolla millioni 200 wakati ilipatia Kenya power dola millioni 500

 

[Kafrican]

Wanomba au wankopa, it two different things. lakini si afadhi sisi tunakopa na pesa inaonekana inakwenda wapi. How about that Euro Bond? Wanasema eti they have to float another bond to pay(where about unknown) the current bond by 2019. [HASHTAG]#WhereIsEuroBoand[/HASHTAG]

Leo ndo unajua tofauti?? si siku zote hua mnasema mnatulisha, eti hua tunaomba omba chakula kutoka kwenu.. kila siku hua tunawaambia tunanunua mahindi na pesa lakini mnajifanya hamuelewi..... haya sasa kaeleze wenzako tofauti...
Mnaomba kwasababu kampuni yenyewe tanesco haina pesa, ndo maana hata worldbank imekataa omba omba tanesco, imesema ride or die nigger!!!!!!!!!


wachana na siasa za ndani za Kenya ([HASHTAG]#WhereIsEuroBoand[/HASHTAG]), anyway kuna aina nyingi za ufisadi, kuna ule ufisadi ambapo pesa hazionekani zinaenda wapi alafu kuna aina nyengine inaitwa incompetence..... pesa inaenda mahala ambako hata haina impact kubwa kwa maisha ya wananchi.... Yani $500million kwa ndege mpya (which includes ndege moja ya dreamliner ambayo hio pekee ni $200M+50M ukichangana na gharama ya ku paint,customization na initial spareparts package) alafu kampuni inayotoa umeme wa kukuza nchi (Kumbuka hadi UN inataka Electricity iwekwe kwa category ya 'Basic Human right') imefilisika haina pesa... inabidi kuomba $200M . hizo ndege zitakua zinaruka kwenda nje, jioni zikirudi JNIA wanapata gizzza tototo hakuna umeme!!!!


Quote of the day: Incompetence is the worst form of corruption.. Harve Poole



also
Muhammadu Sanusi II, has described placing people in positions they don’t have competence to manage as the worst form of corruption.

Delivering an address, in Lagos, at the grand finale of the 30th anniversary of University of Lagos Muslim Alumni (UMA), Sanusi decried the situation where incompetent people are saddled with public offices in the name of the federal character principle.

According to him, “the problem with our country very often is that people are entrusted with responsibilities they are not capable of handling, and that is the worst form of corruption.
Putting Incompetent People in Public Office Worst Form of Corruption - Emir of Kano | Corruption Reporter

 

[Kafrican]

After years of political meddling by politians forcing power utility to forcefully lower power cost regardless of whether it would result into uneven expense book. Finally Tanesco got a manager who had the guts to do the business thing so that to recover what the loses they have been bleeding over the years inorder to recover profits which inturn will give the company room to expand further, you know what he was met with the following day????? [HASHTAG]#Bulldozer[/HASHTAG]!!!!
---------
Tanzania's energy regulator approved on Dec. 31 a tariff hike of 8.53 percent, less than half of what the utility said it needed to cover the losses.
But the next day, Magufuli sacked the head of the state electricity company, saying the price hike would stymie his plans to ramp up industrial output.
Decades of mismanagement and political meddling means the utility sells electricity below cost.
Tanzania seeks $200m World Bank loan to clear arrears of state utility
-----

Naona sera za kiujamaa bado zinawasumbua

 

[kilam]

Haujaelewa point yangu.... hebu nikuulize, sasa ni wapi umeona kenya ikitumia cash kununua ndege au kuwekeza kwa project ambayo haina impact kubwa kwa wananchi wa kawaida?????

pia unafaa uelewe model ya kampuni za kenya zenye umiliki wa kiserekali (parastatles)...

Alafu tofauti ya loan ya tanesco na hii umeweka hapo juu ni kwamba KenyaPower walichukua loan ya WB ambayo inalipwa polepole, ili kulipa maloni ilioyachukua kwa benki za kenya ili kushukisha interest rate za kenya.....
lakini tanesco inaomba loan kwasababu inashindwa kulipa madeni ilio nayo ndo maana hata world bank imekataa kuwapa dolla millioni 200 wakati ilipatia Kenya power dola millioni 500

Sasa wewe unaelewa jinsi mashirika ya umma ya Tanzania (parastatals) yanavyoendeshwa?
Hujui usemalo ngoja nikuache.

 

[Mwanzi1]

wachana na siasa za ndani za Kenya ([HASHTAG]#WhereIsEuroBoand[/HASHTAG]), anyway kuna aina nyingi za ufisadi, kuna ule ufisadi ambapo pesa hazionekani zinaenda wapi alafu kuna aina nyengine inaitwa incompetence..... pesa inaenda mahala ambako hata haina impact kubwa kwa maisha ya wananchi.... Yani $500million kwa ndege mpya (which includes ndege moja ya dreamliner ambayo hio pekee ni $200M+50M ukichangana na gharama ya ku paint,customization na initial spareparts package) alafu kampuni inayotoa umeme wa kukuza nchi (Kumbuka hadi UN inataka Electricity iwekwe kwa category ya 'Basic Human right') imefilisika haina pesa... inabidi kuomba $200M . hizo ndege zitakua zinaruka kwenda nje, jioni zikirudi JNIA wanapata gizzza tototo hakuna umeme!!!!


Quote of the day: Incompetence is the worst form of corruption.. Harve Poole

First, we have our own reasons buying those aircraft in cash. Huwezi kuanza biashara na 100% loan, these aircrafts are assets and not a liability which in turn can be used to secure future loans. Lakini with us owning 100%, we can choose the suitable business model which will work for us. No frills, fully fledged, hop-on hop-off you name it. We've managed to buy ourselves a spare time to think. KQ hasn't got time to think, madeni yana kaba koo. If they move a bit on the left the they will loose, a bit to the right more pain in the KQ coffers

Two, Tanzania is not a single issue, everything is a priority, air travel, electricity, food, health, education and so forth. So if we bought aircraft with own money but on the other hand we request a loan to finance Tanesco, I don't see anything wrong with that, because Tanesco is already in business, it can pay off it's own debts.

Three, there is nothing new financing our own projects, for the past 10 years we been building roads and bridges financed 90% by our own money, no donors no loans, our money. That is over 2,200km connecting every part of the country with tarmac road. In fact we'll start building our first leg of SGR with our own money from Dar to Morogoro, 200km. We call it self reliance.


Road construction leaves a mark

https://www.trademarkea.com/news/tanzania-magufulis-signature-projects-get-more-funding/