China Eximbank provides $165 million preferential buyer’s credit for Togolese Road Network Partial Renovation Project (Linked to Record ID#68450, #43756, #68465, and #43758)

Project narrative

On September 7, 2009, the Export-Import Bank of China and the Ministry of Economy and Finance of the Republic of Togo signed a $165 million preferential buyer’s credit (PBC) agreement for the Togolese Road Network Partial Renovation Project. The PBC carried the following terms: a maturity of 20 years, a grace period of 7 years, and an interest rate of 2%. The proceeds of the PBC were originally going to be used by the borrower to finance three separate commercial contracts with China Road and Bridge Corporation (CRBC) in order to undertake three separate subsidiary projects for the benefit of Togo's Ministry of Public Works and Transport: Phase 1 of Lomé Bypass Road Development and Asphalting Project (captured via Record ID#68450), Alédjo and Défalé Bypass Road Road Development and Asphalting Project (captured via Record ID#43756), and the 81.3 km Tandjouaré–Cinkassé-Burkina Faso Border Road Rehabilitation Project (captured by Record ID#43758). However, in 2014, China Eximbank allowed the borrower to use the proceeds of the PBC to finance a commercial contract for the 13.5 km Togblékopé-Tsévi Road Rehabilitation and Expansion Project (captured via Record ID#68465) in lieu of the commercial contract for the 81.3 km Tandjouaré–Cinkassé-Burkina Faso Border Road Rehabilitation Project. The implementation of the project's first phase (captured via Record ID#68450) began on February 3, 2010 and concluded on October 18, 2014. The project's second phase (captured via Record ID#43756) began implementation on September 18, 2010 and ended on February 15, 2014. The project's third phase (captured via Record ID#43758) began implementation on February 4, 2010, but its completion date remains unknown. The West African Development Bank (BOAD) and the Islamic Development Bank (IsDB) also issued loans in support of the Togolese Road Network Partial Renovation Project worth CFA 6.5 billion and CFA 90.5 billion, respectively.