International law firm Clifford Chance, together with Kenyan lawyer Bowmans Coulson Harney, advised the commercial bank lenders on the financing of road lots 15 and 18 of the Kenya Annuity Road Programme.
The Annuity Program is a Government of Kenya initiative aimed at delivering critical upgrades of 10,000 km of roads to support local trade, tourism and agriculture.
Individual procurements under the pension scheme are allocated and funded as separate lots. Lots 15 and 18 are the first lots to be funded on a truly limited fall-back basis and duplicating this approach going forward is critical to ensure participants’ balance sheet capacity is not constraining development and to the ambitions of the pension scheme in the future to realize in a broader sense.
This transaction builds on Clifford Chance’s market-leading expertise in transportation infrastructure. Clifford Chance was recently ranked #1 in global infrastructure finance by volume for 2021 by the IJ Global League Tables. The firm was also named Global Law Firm of the Year by Infrastructure Investor for three consecutive years.
Bowmans is considered a pacemaker in the development and financing of infrastructure projects in sub-Saharan Africa. His highly regarded team is particularly involved in significant breakthrough infrastructure and renewable energy projects and has further knowledge of the upstream and midstream oil and gas sectors. Most recently, Bowmans won the 2022 Chambers Africa Award for Law Firm of the Year in Kenya. The firm’s practice was also recognized as Team of the Year for Energy and Natural Resources at the 2021 Africa Legal Awards.
Praveen Jagadish, Senior Associate, comments: “The closing of this transaction is the culmination of more than five years of efforts by the sponsor group led by Mota-Engil, the lenders led by Standard Bank and Stanbic Kenya, and the Kenyan government’s PPP Directorate and the Kenya Urban Roads Authority. We were delighted to play our part together with our local partner Bowmans. With several other road projects in Kenya nearing financial close and the Kampala Jinja Expressway project returning to the private market in neighboring Uganda, we anticipate a busy time for infrastructure in East Africa.”
Clifford Chance’s cross-practice team was led by senior associates Praveen Jagadish and Prakruthi Gowda, and supported by partners Jeremy Connick and Michael Pearson. Technical input on the construction was provided by David Metzger (Partner) and Simon Smith (Senior Associate), while the team also included Dolly Aheto-Tsegah and Dominic Behar (both Associates).
The Bowmans team was led by Aleem Tharani (Project Manager, Energy and Infrastructure (Kenya)), with support from Senior Associates Edwin Baru and Candice Kola and Associate Sidharth Shah. Technical construction input was provided by Stephanie McDonald (Senior Consultant, Project Finance) and Lea-ne Kapnoudhis (Associate).