China Eximbank provides $110 million USD buyer’s credit loan for 211 km El Nahood-Um Kadada Road Construction Project (Linked to Umbrellas #57039, #54079)

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 $110 million USD BCL for the 221 km El Nahood-Um Kadada Road Construction Project (See: Chinese Loans to Africa Database). The proceeds from this BCL were used to partially finance a $120 million USD commercial contract signed December 2008 with China Chongqing International Construction Corporation, which was signed in December 2008. This project involved the construction of a 221 km road that connects West Kordofan State with Northern Darfur State. The road begins in El Nahood (or En Nahud or نهد) — a city within West Kordofan State — and terminates in the city of Um Kaddada (أم كدّد;أمّ كدّادة) within Northern Darfur State.Construction commenced in March 2010. This project was plagued by various problems and delays. Local subcontractors were reluctant to conduct on-site work for safety reasons. The project was officially handed over to the Sudanese authorities at the end of the defect liability period on 16 May 2016. The completion of this project has reportedly promoted the development of animal husbandry along the road and shortened travel times in the area.The 211 km El Nahood-Um Kadada Road is part of a larger, $650 million USD Western Salvation Highway, which links Khartoum to Western states in Darfur (see Umbrella Project ID#54079). The other roads that make up the Western Salvation Highway include Projects ID#1013, ID#1051, ID#1053, and ID#1059.

Additional details

This project is also known as the 221 km El Nahood-Aum Kadada Road Construction Project and the El Nahud-Um Kadada Road Construction Project. The Chinese project title is 卢胡德-乌木卡达达道路项目.

Number of official sources

5

Number of unofficial sources

5