Kenya’s Daily Nation on Tuesday accused China of forcing the Kenyan government into a “lopsided multi-billion-shilling deal for the operation of the Standard Gauge Railway” and using similar strong-arm tactics to push Kenya into a “debt trap” coal deal worth $9 billion in U.S. dollars.
The Daily Nation described the coal deal as a “bad project” and “another financial goof”.
The article cited a report from the U.S.-based Institute for Energy Economics and Financial Analysis (IEEFA), which called the Lamu coal power plant a “costly mistake” that could cost Kenyan taxpayers billions of dollars even if it never generates any electric power.
The IEEFA charged the coal-fired plant will divert resources from better alternatives for energy generation, locking Kenyans into buying power that costs over ten times what the project’s advocates initially claimed. The project commits Kenya into paying for a large amount of electrical capacity even if the plant fails to produce that much energy or Kenyan end users fail to purchase it voluntarily.
The staggering cost and dubious profitability of the Standard Gauge Railway mentioned by the Daily Express make it the model of China’s “debt trap” imperialism in the eyes of many critics.
The Kenyan government maintains it is highly satisfied with its participation in Beijing’s “Belt and Road” infrastructure initiative, but many Kenyan citizens are growing nervous about China’s increasing control of their economy.
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4 comments:
Kenyan citizens should wake up.
Kenya has no power.
Of course China will run roughshod over the Nation.
They are lucky they don't have to deal with Israeli or American (Israeli) power.
They would be getting bombed.
China merely wants their money.
Northwest Woodsman: Obviously they did not have someone like our president to negotiate deals with sneaky Chinese bureaucrats. If they had, the Chinese would have taken it in the shorts.
This is the Chinese Belt and Road plan-- they offer smaller countries big $$ loans to build things, then, when they can't repay, they squeeze them.
They are doing a lot of this, and unfortunately, it's working very well for them.
It's like marriage and divorce. At first you get all you want. Then later it dries up, and they want a monthly check and part of your future earnings. Pension, 401k, etc.
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