Road Annuity Lot 32 Project in Kenya (MIGA-14368)

Countries
  • Kenya
Geographic location where the impacts of the investment may be experienced.
Financial Institutions
  • Multilateral Investment Guarantee Agency (MIGA)
International, regional and national development finance institutions. Many of these banks have a public interest mission, such as poverty reduction.
Project Status
Canceled
Stage of the project cycle. Stages vary by development bank and can include: pending, approval, implementation, and closed or completed.
Bank Risk Rating
A
Environmental and social categorization assessed by the development bank as a measure of the planned project’s environmental and social impacts. A higher risk rating may require more due diligence to limit or avoid harm to people and the environment. For example, "A" or "B" are risk categories where "A" represents the highest amount of risk. Results will include projects that specifically recorded a rating, all other projects are marked ‘U’ for "Undisclosed."
Voting Date
Dec 13, 2022
Date when project documentation and funding is reviewed by the Board for consideration and approval. Some development banks will state a "board date" or "decision date." When funding approval is obtained, the legal documents are accepted and signed, the implementation phase begins.
Borrower
Standard Bank of South Africa Ltd.
A public entity (government or state-owned) provided with funds or financial support to manage and/or implement a project.
Sectors
  • Transport
The service or industry focus of the investment. A project can have several sectors.
Investment Type(s)
Guarantee
The categories of the bank investment: loan, grant, guarantee, technical assistance, advisory services, equity and fund.
Project Cost (USD)
$ 51.44 million
Value listed on project documents at time of disclosure. If necessary, this amount is converted to USD ($) on the date of disclosure. Please review updated project documents for more information.
Bank Documents
Primary Source

Original disclosure @ MIGA website

Updated in EWS Apr 9, 2024

Disclosed by Bank Jan 17, 2023

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Project Description
If provided by the financial institution, the Early Warning System Team writes a short summary describing the purported development objective of the project and project components. Review the complete project documentation for a detailed description.

As stated by the MIGA, "the guarantee was cancelled on July 01, 2023."

On December 23, 2022, the Multilateral Investment Guarantee Agency (MIGA), a member of the World Bank Group issued guarantees totaling US$51.44 million to Standard Bank of South Africa Limited and Stanbic Bank Kenya Limited for their non-shareholder loans (including interest) into the Skar Lot 32 Development Corporation Limited for the construction, rehabilitation, upgrading, operation, and maintenance of an existing 66.5km rural road in Kenya (the "Project"). The MIGA guarantees will cover the risks of Transfer Restriction, Expropriation, Breach of Contract, and War and Civil Disturbance for a period of up to 8.5 years.

This is the second road project MIGA has supported in Kenya under the Government of Kenya ("GoK")'s Road Annuity Program. After completion of the Project, the road will be upgraded from earth/gravel road to bitumen standards.

ENVIRONMENTAL CATEGORIZATION

The project is a category A under MIGA'sPolicy on Environmental and Social Sustainability.Click hereto view the Environmental and Social Review Summary.

DEVELOPMENT IMPACTS

The Project is aligned with World Bank Group's Country Partnership Strategy for Kenya particularly in relation to enhanced infrastructure and logistics for sustainable growth, and the GoK's second and third Medium-Term Plans to promote a safe and efficient transport network. The upgrade of the road will result in material travel time savings. The Project also has potential benefits beyond the direct users of the road by contributing to greater integration of the road's influence area with the rest of the country's key economic centers, which in turn brings new economic opportunities for the local people. MIGA's support to the Project will complement World Bank's investments in the road sector in Kenya.

The Project will include earthworks, concrete works and drainage works, which will yield climate adaptation co-benefits. Climate adaptation measures to improve the resilience of the road will include elevating road sections and enhancing road drainage by constructing deeper and wider road drains, pipes and culverts.

Investment Description
Here you can find a list of individual development financial institutions that finance the project.

Contact Information
This section aims to support the local communities and local CSO to get to know which stakeholders are involved in a project with their roles and responsibilities. If available, there may be a complaint office for the respective bank which operates independently to receive and determine violations in policy and practice. Independent Accountability Mechanisms receive and respond to complaints. Most Independent Accountability Mechanisms offer two functions for addressing complaints: dispute resolution and compliance review.

ACCESS TO INFORMATION

You can submit a request for information disclosure at: https://www.miga.org/contact/access_to_information

You can also request general information about MIGA and for information on guarantees by emailing: migainquiry@worldbank.org

ACCOUNTABILITY MECHANISM OF IFC/MIGA

The Compliance Advisor Ombudsman (CAO) is the independent complaint mechanism and fact-finding body for people who believe they are likely to be, or have been, adversely affected by an IFC or MIGA- financed project. If you submit a complaint to the CAO, they may assist you in resolving a dispute with the company and/or investigate to assess whether the IFC is following its own policies and procedures for preventing harm to people or the environment. If you want to submit a complaint electronically, you can email the CAO at CAO@worldbankgroup.org. You can learn more about the CAO and how to file a complaint at http://www.cao-ombudsman.org

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