Project ID: 1059

China Eximbank provides $119 million USD buyer’s credit loan for 340 km Renk-Malakal Road Construction Project (Linked to Umbrellas ID#57039, #54079)

Commitment amount

$ 155142086.7

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

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

Implementation (The next section lists the possible statuses.)

Pledge

Commitment

Implementation

Completion

Suspended

Cancelled

Milestones

Commitment year

2009

Geography

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 $119 million USD BCL for the 340 km Renk-Malakal Road Construction Project (See: 'Eastern Promises: New Data On Chinese Loans in Africa, 2000 to 2014,' p. 19). The proceeds from this BCL were used to partially finance a $220 million USD commercial contract with Sinohydro. This project involved the construction of a 340 km road from the city of Renk (الرنك) in Upper Nile State to the city of Malakal (ملكال) in Upper Nile State. A foundation stone laying ceremony took place on 21 April 2009. Sinohydro reportedly halted construction with only 180 km of the road completed. It is unclear whether Sinohydro ever finished this project. The 340 km Renk-Malakal 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#1053, and ID#1013.

Additional details

The Chinese project title is 兰克-马拉卡勒公路项目 or 和平之路.SAIS-CARI identifies the loan maturity as 20 years and the interest rate as 3.5%. For the time being, AidData relies on the loan maturity and interest rate that was supposed to apply to all subsidiary loans approved through the $3 billion oil-backed master framework agreement (see Umbrella ID#57039).

Number of official sources

8

Number of unofficial sources

7

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Details

Cofinanced

No

Receiving agencies [Type]

Government of Sudan [Government Agency]

Implementing agencies [Type]

SinoHydro [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