China Eximbank pledges $297.8 million loan for Phase 2 of Papalanto Power Gas Turbine Power Plant Project (Linked to Record ID#60641)

Project narrative

In 2005, China Eximbank agreed in principle to provide a $297.75 million loan for Phase 2 of the Papalanto Power Gas Turbine Power Plant Project. The loan was reportedly to be collateralized with the proceeds of oil sales (through a contract between China National Petroleum Company and Nigeria's national oil company in which the latter agreed to sell 30,000 barrels of oil per day to the former). The purpose of the second phase of this project was to generate 750 additional megawatts at the Papalanto Power Gas Turbine Power Plant. It involved the installation of four General Electric gas turbines and two steam turbines. A special purpose vehicle — Olorunsogo Generation Company Limited — was established to manage the design, financing, and implementation of this independent power project (IPP). Shandong No. 3 Electric Power Construction Corporation (SEPCO III), which was the EPC contractor that funded and implemented Phase 1 of the project (see Record ID#60641), was the contractor selected for project implementation. The second phase was ultimately completed in March 2015 and commissioned by former President Goodluck Jonathan. However, it is unclear if China Eximbank’s loan pledge ever resulted in an official commitment.