China Eximbank provides $612 million USD buyer’s credit loan for 405 MW Al-Fulah Gas-Fired Power Plant Construction Project (Linked to #979, Umbrella #57039)
Constant 2017 USD
Funding agency [Type]
Export-Import Bank of China [State-owned Policy Bank]
Energy (Code: 230)
Export Buyer's Credit
On 29 July 2008, China Eximbank and the Government of Sudan signed a $3 billion USD oil-backed master framework agreement (or line of credit) to finance various infrastructure projects (see Umbrella Project ID#57039). This resources-credit cooperation package is backed by future revenues from the sale of oil exports. Each subsidiary buyer’s credit loan (BCL) issued through the framework agreement carries a 15-year maturity and 5.6% interest rate.One of the subsidiary loans approved through this agreement in 2009 was a $612 million BCL for the 405 MW Al-Fulah Gas-Fired Power Plant Construction Project (See: Chinese Loans to Africa Database). The proceeds from this BCL were used to finance 90% a $680.3 million USD Engineering, Procurement and Construction (EPC) contract signed on 24 December 2008 with China National Machinery and Equipment Import and Export Corporation (CMC). This project involved the installation of three 135 MW power generating units at a gas-fired power plant in the city of Al-Fulah. Its ultimate goal was to supply electricity to the entire Kodorfan region through an electricity transmission line than runs from the city of El-Obeid (in central Sudan within North Kordofan State) to Al-Fulah (or al-Fula or EI Fula or الفولة) in West Kordofan State. The transmission line project was funded through a separate China Eximbank PBC (see Project ID#979).A groundbreaking ceremony for the 405 MW Al-Fulah Gas-Fired Power Plant Construction Project took place on 24 March 2010. Then, in November 2012, the Sudanese Minister of Electricity and Dams, Osama Abdulla, told the Sudanese Parliament that work on this project had halted due to the Sudanese Government failing to make oil shipments to China repay its debts the loans (See: Pursuing Transparency in Sudan’s Oil Industry p. 14). At the time of this work stoppage, $366.5 million USD had been disbursed through the China Eximbank BCL.As of 2017, the project was still stalled because Sudan’s Central Bank had not paid the Chinese contractor responsible for implementation in a timely manner. The project was officially cancelled by the Government of Sudan in 2018; however, it was later reinstated by the Transitional Government of Sudan in October 2019 (See: مجلس الوزراء يُلغي قرار (الطاقة) ويوجه باستمرار مشروع كهرباء الفولة).
The Chinese project title is 富拉电站项目 or 富拉电站 or 苏丹富拉3X135MW电力项目工程项目 or 苏丹富拉电力项目. The Arabic project title is مشروعكهرباءالفولة:موقع (See: والي غرب كردفان يدعو المركز لتكملة مشروع كهرباء الفولة).Some sources indicate that Shandong Electric Power Capital Construction Corporation (SEPCO), China Seventeen Metallurgical Group Co., Ltd., and CMEC were the contractors responsible for implementation, but China’s Ministry of Commerce identifies CMC as the contractor responsible for implementation.A research paper (source 65083) said that the loan amount could be as much as $680.3 million USD (p.14).
Number of official sources
Number of unofficial sources
Receiving agencies [Type]
Government of Sudan [Government Agency]
Implementing agencies [Type]
China National Machinery and Equipment Import & Export Corporation [State-owned Company]; Sudan Ministry of Energy and Mineral Resources [Government Agency]
Future revenues from the sale of oil exports