Project ID: 1053

China Eximbank provides $90 million buyer’s credit loan for 185 km El Dibeibat-El Fula Road Construction Project (Linked to Project ID#57039, #54079)

Commitment amount

$ 135180904.3447313

Adjusted commitment amount

$ 135180904.34

Constant 2021 USD

Summary

Funding agency [Type]

Export-Import Bank of China (China Eximbank) [State-owned Policy Bank]

Recipient

Sudan

Sector

Transport and storage (Code: 210)

Flow type

Loan

Level of public liability

Central government debt

Financial distress

Yes

Infrastructure

Yes

Category

Intent

Mixed (The next section lists the possible statuses.)

Commercial

Development

Representational

Mixed

Financial Flow Classification

OOF-like (The next section lists the possible statuses.)

Official Development Assistance

Other Official Flows

Vague (Official Finance)

Flows categorized based on OECD-DAC guidelines

Project lifecycle

Status

Completion (The next section lists the possible statuses.)

Pledge

Commitment

Implementation

Completion

Suspended

Cancelled

Milestones

Commitment

2009-01-01

Actual start

2010-01-07

Actual complete

2017-06-19

Description

On July 2008, 29, China Eximbank and the Government of Sudan signed a $3 billion oil-backed master framework agreement (or line of credit) to finance various infrastructure projects (captured via 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 $90 million BCL for the 185 km El Dibeibat-El Fula Road Construction Project. The proceeds from this BCL were used to partially finance a $100 million commercial contract signed in 2009 with Chongqing International Construction Corporation. The project involved the construction of a 185 km road from El Dibeibat (or al-Dibaibat) in South Kordofan State to EI Fula (or al-Fula or الفولة) in West Kordofan State. The road starts in El Dibeibat in central Sudan and it runs southwest to the town of El Fula in Southern Sudan. The road passes through the small towns of Abu Dhabad and Abuku. It is an important transportation route between southern Sudan and the city of El-Obeid in central Sudan within North Kordofan State. Construction commenced on January 7, 2010, but the project was implemented on a 'stop and go, stop and go' basis due to insecurity and continuing conflict in the area. The project was officially handed over to the Sudanese authorities at the end of the defect liability period on June 19, 2017. The completion of this project has reportedly reduced travel times in southern Sudan and central Sudan and promoted industry alongside the road. There are some indications that the China Eximbank loan issued for the El Dibeibat-El Fula Road Construction Project may have underperformed vis-a-vis lender expectations. According to Sudan’s Finance Minister Ali Mahmood Abdel-Rasool, China Eximbank suspended its financing for 11 projects in Sudan following the secession of South Sudan in July 2011, which triggered a major loss of oil revenue (a key source of collateral for China Eximbank loans). Ali Mahmood Abdel-Rasool said at the time that the Government of Sudan had previously pledged oil revenues (worth 120,000 barrels per day) to China Eximbank as a source of collateral. Then, on February 18, 2012, the Chinese Government announced that it had agreed to reschedule the outstanding debt obligations of the Government of Sudan by extending loan repayment periods by 5 years (as captured via Project ID#30421). According to the External Debt Unit of the Central Bank of Sudan, the Government of Sudan's total arrears to Chinese creditors amounted to $3.864 billion ($2.608 billion in principal, $1.129 billion in interest, and $127 million in penalty interest) as of March 31, 2022.

Additional details

1. This project is also known as the 185 km Al Dibabat-Abou Zayd-El Fula Road Project, the 185 km Dubeibat-Abu Zabad-El Fula Road Project, or the 185 km al-Dibaibat-Abu Zabad-al-Fula Road Project. The Chinese project title is 迪贝巴特-阿布扎巴德-富拉道路项目 or 迪贝巴特-富拉公路项目 or “迪贝巴特-富拉”公路项目 or “迪富”公路工程. 2. The 185 km El Dibeibat-El Fula Road is part of a larger, $650 million Western Salvation Highway, which links Khartoum to Western states in Darfur (as captured via Umbrella Project ID#54079). The financing arrangements for the other roads that make up the Western Salvation Highway are captured via Project ID#1050, ID#1051, ID#1059, and ID#1013.

Number of official sources

7

Number of total sources

16

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Details

Cofinanced

No

Direct receiving agencies [Type]

Government of Sudan [Government Agency]

Implementing agencies [Type]

China Chongqing International Construction Corporation (CICO) [State-owned Company]

Sudan Ministry of Transport, Roads, and Bridges [Government Agency]

Collateral

Future revenues from oil export receipts (worth 120,000 barrels per day)

Loan Details

Maturity

15 years

Interest rate

5.6%

Grant element (OECD Grant-Equiv)

15.8829%

Bilateral loan

Export buyer's credit

Investment project loan