Overview

China Eximbank provides $81 million loan for Phase 1 of Maya-Maya International Airport Project (Linked to Record ID#60219 and #141)

Commitments (Constant USD, 2023)$134,586,727

Commitment Year•2007Country of Activity•CongoDirect Recipient Country of Incorporation•CongoSector•Transport And StorageFlow Type•Loan

Status

Project lifecycle

Completion

Pipeline: PledgePipeline: CommitmentImplementationCompletion

Timeline

Key dates

Commitment date: Jan 1, 2007

Start (actual): Aug 7, 2007

End (actual): Jun 1, 2011

First repayment: Dec 31, 2011

Last repayment: Dec 27, 2026

Geospatial footprint

Map overview

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This project involved the construction and equipping of Maya-Maya International Airport Project in the capital city of Brazzaville. More detailed locational information can be found at https://www.openstreetmap.org/way/324597178.

Stakeholders

Organizations involved in projects and activities supported by financial and in-kind transfers from Chinese government and state-owned entities

Ultimate beneficial owners

At least 25% host country ownership

Funding agencies

State-owned Policy Banks

Export-Import Bank of China (China Eximbank)

Receiving agencies

Government Agencies

Government of Republic of Congo

Implementing agencies

State-owned companies

Weihai International Economic & Technical Cooperative Co., Ltd (WIETC)

Collateral providers

State-owned companies

Société Nationales des Pétroles Congolais (SNPC)

Loan desecription

China Eximbank provides $81 million loan for Phase 1 of Maya-Maya International Airport Project

Grace period•5 yearsGrant element•65.0736%Interest rate (t₀)•0.25%Interest type•Fixed Interest RateMaturity•20 years

Collateral

This China Eximbank loan -- and other subsidiary China Eximbank loans approved under a June 19, 2006 framework agreement that was renewed/extended in 2012 -- was collateralized against cash proceeds from SNPC oil export sales to Chinese importers (through an offtake agreement), which were deposited in a China Eximbank-controlled escrow account. The Republic of Congo was required to maintain a minimum cash balance in the escrow account equivalent to approximately 20% of its total outstanding debt to China Eximbank. The cash balance in the China Eximbank-controlled escrow account was $534,238,226 (CFA 272,846,414,000) in 2011, an unknown amount in 2012, an unknown amount in 2013, an unknown amount in 2014, an unknown amount in 2015 (equivalent to 26% of SNPC oil sales in 2015), $281,560,937 in 2016 (equivalent to 7,558,672 barrels of oil or 32% of SNPC oil sales in 2016), $338,285,020 in 2017 (equivalent to 23.25% of SNPC oil sales in 2017), $513,780,005 in 2018 (equivalent to 7,411,386 barrels of oil, eight oil cargoes, or 30.22% of SNPC oil sales in 2018), $523,547,187 in 2019 (equivalent to 8,228,065 barrels of oil, 9 oil cargoes, or 32.56% of SNPC oil sales in 2019), $266,659,781 in 2020 (equivalent to 6,349,813 barrels of oil, 7 oil cargoes, or 31.61% of SNPC oil sales in 2020), $319,164,228 in 2021 (equivalent to 4,585,056 barrels of oil or 21.4% of SNPC oil sales in 2021), and $356,343,684 in 2022 (equivalent to 3,634,514 barrels of oil 13.09% of SNPC oil sales in 2022).

Narrative

Full Description

Project narrative

On June 19, 2006, China Eximbank and the Republic of Congo signed a $1.6 billion loan framework agreement — also known in the Republic of Congo as the “strategic partnership” (“partenariat stratégique”) — that allowed the Republic of Congo to obtain loans to fund export buyer's credits from China Eximbank for infrastructure projects through a securitization mechanism: Société Nationales des Pétroles Congolais (SNPC)—the country’s state-owned oil company — agreed to deposit a portion of the cash proceeds from its oil exports into an escrow account that is controlled by China Eximbank. This framework agreement (captured via Record ID#60219) was ratified on October 26, 2006. Two of the subsidiary loans that were approved through the framework agreement included a loan in 2007 for Phase 1 of the Maya-Maya International Airport Project (captured via Record ID#161) and a $72 million loan for Phase 2 of the Maya-Maya International Airport Project in 2011 (captured via Record ID#141). The borrowing terms of these loans were as follows: a 0.25% interest rate, a 20-year maturity, and a 5-year grace period. As of 2014, USD 81 had been disbursed. The (principal) amount outstanding under these two loans was $10,880,885 as of December 31, 2019. The project involved the construction and equipping of Maya-Maya International Airport Project in the capital city of Brazzaville. Phase 1 involved the construction of a terminal building (including viaducts and a parking lot with 800 spaces). Phase 2 involved the installation of runway equipment and the construction of an airport hotel and an aviation club. Weihai International Economic & Technical Cooperative Co., Ltd (WIETC) was the contractor responsible for implementation of both phases. Phase 1 was launched on August 7, 2007 and completed on June 1, 2011. Phase 2 was completed on August 15, 2014.

Staff comments

1. The Chinese project title is 布拉柴维尔机场项目 or 玛雅－玛雅机场为刚果 or 马亚-马亚国际机场 or MayaMaya国际机场. Phase 1 is sometimes also referred to as the Maya-Maya International Airport Construction Project. 2. Several sources refer to a “$160 million loan” from China Eximbank for the project, which likely reflects the sum total of China Eximbank’s lending for Record ID#161 and Record ID#141. In the database of Chinese loan commitments that SAIS-CARI released in July 2020, it identifies a single $136 million China Eximbank loan for Maya-Maya International Airport Project. AidData records two separate China Eximbank loans — for Phase 1 and Phase 2 of the Maya-Maya International Airport Project, respectively — that the Congolese authorities disclosed to the World Bank and the World Bank reported in its September 2014 Republic of Congo Economic Update publication.