ICBC provides $314 million loan for 101 km Eastern Corridor Extension Project and the 51 km Continental Region Coastal Highway Project

Project narrative

On April 28, 2015 the Industrial and Commercial Bank of China (ICBC) signed an infrastructure cooperation framework agreement with Equatorial Guinea's Ministry of Finance and Budget in Beijing (as captured via Record ID#52165). Then, in January 2018, ICBC and the Equatorial Guinea’s Ministry of Finance and Budget signed a $314,092,567 loan agreement for the 101 km Eastern Corridor Extension Project and the 51 km Continental Region Coastal Highway Project. The borrowing terms of the loan are unknown. However, it is known that the loan was backed by a Sinosure credit insurance policy. It is also known that the borrower was expected to use the proceeds of the loan to partially finance two commercial contracts: (1) a $162,187,507 commercial contract between China Road and Bridge Corporation (CRBC), Equatorial Guinea’s Ministry of Public Works and Infrastructure, Ge-Projects and Equatorial Guinea’s Ministry of Finance and Budget for the 101 km Eastern Corridor Extension Project, which was signed in July 2017; and (2) a $391,818,522 commercial contract between China Road and Bridge Corporation (CRBC), Equatorial Guinea’s Ministry of Public Works and Infrastructure, Ge-Projects and Equatorial Guinea’s Ministry of Finance and Budget for the 51 km Continental Region Coastal Highway Project, which was signed in July 2017. The purpose of the 101 km Eastern Corridor Extension Project is to construct a 101 km road from Akam to Mofub via Oboroncu and Nsork in the interior of the country’s Continental Region. The purpose of the 51 km Continental Region Coastal Highway Project is to construct a 51 km road that runs from the Bata district to Bolondo in Mbini district via the towns of Viadibe, Utonde, and Bome. CRBC is the EPC contractor responsible for the implementation of both projects. In August 2017, a feasibility study report and environmental impact assessment (EIA) study report were submitted. The lender responded with a letter of approval.