China Eximbank provides RMB 162 million export seller's credit to CWE for Volta Lake Resettlement Township Electrification Sub-Project of the Upper West Electrification Project (linked to #73183)
Constant 2017 USD
Funding agency [Type]
Export-Import Bank of China [State-owned Policy Bank]
Energy (Code: 230)
Supplier's Credit/Export Seller's Credit
On March 2, 2000, the Government of Ghana signed a supplier credit agreement worth approximately $29.5 million with China International Water & Electric Corporation (CWE) for the Volta Lake Resettlement Township Electrification Sub-Project of the Upper West Electrification Project. The CWE supplier credit was provided through an RMB-denominated tranche (RMB 162 million) and a USD-denominated tranche ($6.4 million). Both tranches carried the following terms: 2% interest rate, 10 year maturity, and a 3 year grace period. This project entry captures the RMB-denominated loan tranche and project #73183 captures the USD-denominated loan tranche. The proceeds from both loan tranches were used to finance the extension of electricity to 106 townships (in Brong Ahafo Region, Eastern Region, Northern Region, and Volta Region) under the Volta Lake Resettlement Scheme.In order to finance its supplier credit agreement with the Government of Ghana, CWE secured an export seller’s credit on September 8, 2000 from China Eximbank with an 11 year maturity. The loan terms captured in this project entry, however, are those of the supplier credit from CWE to Ghana.Feasibility studies identified a total of 171 townships along the Volta Lake to benefit from the project, but due to the large number of towns involved, the project was carried out in phases. The first phase, which involved the electrification of 106 townships, had an estimated total cost of $32.8 million. CWE provided $29.5 million, covering approximately 90 percent of the total cost. The Government of Ghana was required to contribute the remaining 10% ($2.8 million dollars) as counterpart funding. CWE was the contractor responsible for implementation. Construction began in 2002 and ended in 203. However, the precise project completion date is unknown.
The Chinese project title is 的沃尔特湖移民村镇电气化项目. Some media sources indicate that Ghana’s Parliament approved the supplier credit agreement in December 1999 rather than March 2000. However, the Government of Ghana’s Controller & Accountant General's Department records the loan commitment year as 2000. In the database of Chinese loan commitments that SAIS-CARI released in July 2020, it records a maturity of 11 years for this supplier credit but does not record an interest rate or grace period. AidData records the maturity (10 years), interest rate (2%), and grace period (3 years) reported at the time that Ghana’s Parliament approved the supplier credit. The 11-year maturity recorded by SAIS-CARI appears to refer to the term of the export seller’s credit that CWE secured from China Eximbank rather than the term of the supplier credit that CWE provided to the Government of Ghana.
Number of official sources
Number of unofficial sources
Receiving agencies [Type]
China International Water and Electrical Corporation (CWE) [State-owned Company]; Government of Ghana [Government Agency]
Implementing agencies [Type]
China International Water and Electrical Corporation (CWE) [State-owned Company]