Narrative
Full Description
Project narrative
On September 27, 2010, the Chinese Government and the Government of Mali signed a concessional loan framework agreement for Phase 1 of the Bamako-Ségou Road Rehabilitation Project. Then, on December 30, 2010, China Eximbank and the Government of Mali signed an RMB 1,030,000,000 government concessional loan (GCL) agreement for the project. The loan's estimated borrowing terms included a 18.8028-year maturity, a 7.3028-year grace period, and a 0.8171% interest rate. The proceeds from the GCL were used to be used by the borrower to finance a commercial contract between China Road and Bridge Corporation (CRBC) and Mali’s Ministry of Equipment and Transportation, which was signed on December 2, 2009. Phase 1 involved the rehabilitation of a 218 kilometer segment of National Road 6 (RN6) from the city of Bamako to the city of Ségou. China Road and Bridge Corporation was the contractor responsible for implementation. A formal groundbreaking ceremony took place on October 25, 2010. However the project did not officially start until November 18, 2011. The project was temporarily suspended due to a military coup in 2012 and then delayed significantly due to an armed rebellion in Northern Mali in 2013 and the Ebola outbreak of 2014. The project was ultimately completed when the road was opened to traffic on January 13, 2015. As a result of this project, travel time from Bamako to Ségou fell from 4 hours to 2 hours.
Staff comments
1. The French project title is Rehabilitation de la Route Existante Bamako-Segou Phase I or le Projet de la Réhabilitation de la Route Existante Bamako-Ségou en 1X2 Voies or Projet de réhabilitation de la route Bamako-Ségou. The Chinese project title is 巴马科－赛古公路 or 巴马科—塞古公路整治项目 or 马里巴塞一期项目 or 承建的马里巴马科—塞古道路改造工程一期项目. 2. In the database of Chinese loan commitments that SAIS-CARI released in July 2020, it identifies the face value of the China Eximbank loan that supported this project as $346 million. AidData relies on the face value (RMB 1,030,000,000 or approximately $151 million) of the loan agreement that was signed by China Eximbank and the Government of Mali on December 30, 2010. 3. According to the World Bank's Debtor Reporting System (DRS), the weighted average maturity of all official sector lending from Chinese creditors to government and government-guaranteed borrowing institutions in Mali was 18.8028 years in 2010. AidData estimates the maturity of the China Eximbank loan that supported Phase 1 of the Bamako-Ségou Road Rehabilitation Project by using this figure. See https://www.dropbox.com/scl/fi/cujt9ufun0n79texgwmdr/February-2025-IDS-Extraction-Mali-s-Official-Sector-and-Private-Sector-PRC-Borrowings-and-Borrowing-Terms.xlsx?rlkey=51bkgjbp345u3409irrbpt8mm&dl=0 4. According to the World Bank's Debtor Reporting System (DRS), the weighted average grace period of all official sector lending from Chinese creditors to government and government-guaranteed borrowing institutions in Mali was 7.3028 years in 2010. AidData estimates the grace period of the China Eximbank loan that supported Phase 1 of the Bamako-Ségou Road Rehabilitation Project by using this figure. See https://www.dropbox.com/scl/fi/cujt9ufun0n79texgwmdr/February-2025-IDS-Extraction-Mali-s-Official-Sector-and-Private-Sector-PRC-Borrowings-and-Borrowing-Terms.xlsx?rlkey=51bkgjbp345u3409irrbpt8mm&dl=0 5. According to the World Bank's Debtor Reporting System (DRS), the weighted average interest rate of all official sector lending from Chinese creditors to government and government-guaranteed borrowing institutions in Mali was 0.8171% in 2010. AidData estimates the interest rate of the China Eximbank loan that supported Phase 1 of the Bamako-Ségou Road Rehabilitation Project by using this figure. See https://www.dropbox.com/scl/fi/cujt9ufun0n79texgwmdr/February-2025-IDS-Extraction-Mali-s-Official-Sector-and-Private-Sector-PRC-Borrowings-and-Borrowing-Terms.xlsx?rlkey=51bkgjbp345u3409irrbpt8mm&dl=0 6. China Eximbank is also financing Phase 2 of the Bamako-Segou Road Rehabilitation Project (captured in Record ID#58571).