China Eximbank provides $90 million USD buyer’s credit loan for 185 km El Dibeibat-El Fula Road Construction Project (Linked to Umbrellas #57039, #54079)
Commitment amount
$ 117334351.3
Constant 2017 USD
Summary
Funding agency [Type]
Export-Import Bank of China [State-owned Policy Bank]
Recipient
Sudan
Sector
Transport and storage (Code: 210)
Flow type
Export Buyer's Credit
Concessional
No
Category
Project lifecycle
Description
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 $90 million USD BCL for the 185 km El Dibeibat-El Fula Road Construction Project (See: Chinese Loans to Africa Database). The proceeds from this BCL were used to partially finance a $100 million USD commercial contract signed in 2009 with Chongqing International Construction Corporation (See: 'Eastern Promises: New Data On Chinese Loans in Africa, 2000 to 2014'). This 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 7 January, 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 19 June, 2017. The completion of this project has reportedly reduced travel times in southern Sudan and central Sudan and promoted industry alongside the road.The 185 km El Dibeibat-El Fula 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#1050, ID#1051, ID#1059, and ID#1013.
Additional details
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.
Number of official sources
6
Number of unofficial sources
7
Details
Cofinanced
No
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]
Loan type
Non-Concessional
Maturity
15 years
Interest rate
5.6%
Grant element
19.82670511%
Gurarantee provided
No
Insurance provided
No
Collateralized/securitized
Yes
Collateral
Future revenues from the sale of oil exports