China Eximbank provides RMB 378 million government concessional loan for Maputo International Airport Modernization and Expansion Project (Linked to Record ID#21389, #72890)

Project narrative

On September 25, 2008, the Government of Mozambique and China Eximbank signed a $23,301,644 buyer's credit loan (BCL) agreement for the Maputo International Airport Modernization and Expansion Project. The BCL carried the following borrowing terms: a 12-year maturity (estimated final maturity date: September 25, 2020), a 3-year grace period (estimated first repayment date: September 25, 2021), and an interest rate of 6-month LIBOR plus a 2.5% margin. The Government of Mozambique used the proceeds from the BCL (which was backed by a sovereign guarantee) to on-lend to Aeroportos de Moçambique, E.P., a state-owned enterprise in Mozambique. The BCL's (principal) amount outstanding was $15,534,429.16 as of December 31, 2016 and $11,650,821.85 as of December 31, 2017. On February 23, 2009, the Government of Mozambique and China Eximbank signed an RMB 378 million government concessional loan (GCL) agreement for the Maputo International Airport Modernization and Expansion Project. The loan (GCL) carries an interest rate of 2%, a 20 year maturity period, and a 6 year grace period. Its first scheduled principal payment date is March 21, 2015 and its last scheduled principal payment (maturity) date was September 21, 2029. The loan's (principal) amount outstanding was $29,753,791 as of December 31, 2022. Then, on December 16, 2010, the Government of Mozambique and China Eximbank signed a government concessional loan (GCL) agreement worth RMB 440,365,443 supplemental funding for the Maputo International Airport Modernization and Expansion Project. The loan carries a 2% interest rate, a 20 year maturity period, and a 5 year grace period. Its first scheduled principal payment date is March 21, 2016 and its last scheduled principal payment (maturity) date was September 21, 2029. The loan's (principal) amount outstanding was $39,150,403 as of December 31, 2022. The project involved the construction of new terminals and an increase in the airport’s passenger handling capacity – from 450,000 to 900,000 per year. More specifically, the project scope included the construction of a new international passenger terminal and the respective aircraft parking platform; the expansion of an existing passenger terminal and its transformation to serve domestic travelers; the construction of a VIP Presidential pavilion with its own access and a new parking facility, the remodeling of the existing VIP lounge for use by other individuals; the construction of a new cargo terminal with direct access and parking; the construction of a new control tower; the construction of a large new car parking lot; and re-planning of the roads surrounding the airport. Anhui Foreign Economic Construction Group (AFECC) was the contractor responsible for implementation. On April 13, 2009, Aeroportos de Moçambique E.P. signed a new formal agreement regarding project construction with AFECC. Construction began on April 16, 2009 and ended on June 10, 2010. An official project completion ceremony was then held on November 12, 2010. The project was originally scheduled to reach completion in June 2010. However, the China Eximbank BCL for the Maputo International Airport Modernization and Expansion Project financially underperformed vis-a-vis the original expectations of the lender. Aeroportos de Moçambique, E.P. entered a period of financial distress and defaulted on its BCL repayment obligations in 2016. The BCL was rescheduled (reprofiled) in 2017 such that principal repayments were deferred until 2019, although the final loan maturity date remained unchanged. Record ID#1222 captures the RMB 378 million GCL, while Record ID#21389 captures the $23.3 million BCL and Record ID#72890 captures the RMB 440,365,443 GCL.