China Eximbank provides $75 million preferential buyer's credit for Phase 1 of Gnassingbé Eyadéma International Airport Expansion and Modernization Project (Linked to Project ID#67928 and #73836)

On December 20, 2011, the Chinese Government and the Government of Togo signed a preferential loan framework agreement for Phase 1 of the Gnassingbé Eyadéma International Airport Expansion and Modernization Project. Then, on January 16, 2012, the Export-Import Bank of China and the Ministry of Economy and Finance of the Republic of Togo signed a $75 million preferential buyer's credit (PBC) agreement and a $75 million government concessional loan (GCL) agreement the project. The GCL and PBC carried the following estimated borrowing terms: a 1.8728% interest rate, 7.526-year grace period, and a 20.026-year maturity. Both loans were to be serviced and secured with revenues from an airport infrastructure development fee (known as 'RDIA' in French). The proceeds from the PBC and GCL were used by the borrower to finance a commercial contract between Togo’s Ministry of Transport and China Airport Construction Group Corporation (CACC), which was signed in December 2010. The GCL is captured via Project ID#73836 and the PBC is captured via Project ID#46970. Phase 1 involved the construction of a new terminal, a shopping center, and a hotel at the Gnassingbé Eyadéma International Airport (AIGE), as well as the construction of a car park with 1,000 spaces; and an expansion of the freight area. It also included extending the runway by 500 meters, extending the taxiway, reconstruction the existing runway and its drain, renovating and extending the energy stems, the airfield's lights, navigation and meteorological systems, and a transformer substation. Three boarding bridges were also to be constructed. The 21,000 square meter terminal building was located on the north side of the current terminal, 2.3 times the size of the current terminal. The new terminal had 5 new parking spaces for planes, raising the total number of plane parking spaces to 22. Upon completion, the airport was expected that the annual passenger throughput of AIGE would increase from 600,000 to 1.5 million and the annual cargo throughput would increase from 10,000 tons to 50,000 tons. CACC and Weihai International Economic & Technical Cooperative Co. (WIETC) were the contractors responsible for project implementation. Socotec International provided project management services. Togo's Ministry of Infrastructure and Transport was the beneficiary ministry. The project was launched on December 26, 2011 at a groundbreaking ceremony attended by the President of Togo Faure Gnassingbé, son of former President Gnassingbé Eyadéma. The project passed final inspection at the end of May 2015. The project had a one-year warranty, which ended in April 2016. The new terminal was officially inaugurated by President Gnassingbé on April 25, 2016.

Additional details

1. The Chinese project title is 洛美国际机场改扩建项目 or 多哥洛美埃亚德马国际机场改扩建项目 or 洛美埃亚德马国际机场新航站 or 多哥一期洛美机场航站楼工程. The French project title is Construction d’une nouvelle aérogare à l’aéroport international Gnassingbé Eyadema or Le projet de réaménagement et d’extension de l’aéroport de Lomé. 2. One the use of the airport fee as a debt service and security mechanism, see https://assemblee-nationale.tg/wp-content/uploads/2021/10/loi-de-finances-2020-rapport.pdf 3. The estimated borrowing terms (maturity, grace period, and interest rate) of the loan are drawn from the World Bank's Debtor Reporting System (DRS). See https://www.dropbox.com/s/2sw4f7gluxa52fk/DRS%20Official%20Commitments%20from%20China%20Through%202021.xlsx?dl=0 and https://www.dropbox.com/s/ab8qt4n6jijcbhd/IDS_Average%20interest%20on%20new%20external%20debt%20commitments.xlsx?dl=0 and https://www.dropbox.com/s/949n5rctiue6d7c/IDS_Average_grace_period_and_maturity_on_new_external_debt_commitments.xlsx?dl=0 4. China Eximbank also financed Phase 2 of the Gnassingbé Eyadéma International Airport Expansion and Modernization Project (as captured via Project ID#67928).

Number of official sources

17

Number of total sources

28