Project ID: 1806

Chinese Government pledges loan for Cassava Ethanol Fuel Plan Construction Project

Pledged amount

$ 109660700.2

Constant 2017 USD

Not recommended for aggregates

This project is not recommended for use in creating aggregated sums. See the documentation for more information about this criteria.

Summary

Funding agency [Type]

Unspecified Chinese Government Institution [Government Agency]

Recipient

Nigeria

Sector

Energy (Code: 230)

Flow type

Loan

Concessional

Vague

Category

Intent

Mixed (The next section lists the possible statuses.)

Commercial

Development

Representational

Mixed

Financial Flow Classification

OOF-like (The next section lists the possible statuses.)

Official Development Assistance

Other Official Flows

Vague (Official Finance)

Flows categorized based on OECD-DAC guidelines

Project lifecycle

Status

Pipeline: Pledge (The next section lists the possible statuses.)

Pledge

Commitment

Implementation

Completion

Suspended

Cancelled

Milestones

Commitment year

2008

Description

In August 2006, Nigeria's central state of Niger and the Chinese government signed an MoU for an ethanol plant, to be fed by cassava, in the state capital Minna. Secretary to the Niger State Government Adams Erena said the project would cost 11.6 billion naira (~$90 million). On January 24, 2008, Crownek Green Energy Nig. Ltd signed a $70 million commercial contract with China National Heavy Machinery Corporation (中国重型机械总公司) for the implementation of the Nigeria Cassava Ethanol Project. At the commercial contract signing ceremony, Crownek Green Energy Nig. Ltd and China National Heavy Machinery Corporation announced that they would seek to fund this project with a concessional loan from the Chinese Government. 85% of the cost of the project (9.86 billion naira) was to be financed through a loan from the Chinese government at a 3% interest rate. The 15% balance would be sourced by the state government from local banks. By 2006, the state government had already released 30 million naira to local cassava farmers to facilitate mass production of the commodity. However, it is unclear a Chinese Government loan ever materialized. This project involved the construction of a 180,000 liter per day ethanol-based fuel plant in Lyemero, Nigeria. The ethanol was produced from local cassava. A groundbreaking ceremony for the project took place on September 4, 2008. Upon completion, it was expected that the project would have the capacity to convert 150,000 tons of cassava into fuel energy. Erena said that the biofuel would be sold at cheaper rates for both local consumption and exports as ethanol. Wang Qingxin, managing director of the Chinese company, assured his Nigerian partner that the project would be completed within two years.

Additional details

The Chinese project title is 举行了尼日利亚木薯加工酒精EPC总包项目 or 举行了尼日利亚木薯加工酒精项目 or 酒精厂项目.The 3% interest rate can be found in the source 'Niger, Chinese Coy in Ethanol Production Pact'. Other loan terms are unknown.Because it is unclear a Chinese Government loan ever materialized, this project has been status-coded as a pledge for the time being.

Number of official sources

4

Number of unofficial sources

9

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Details

Cofinanced

No

Receiving agencies [Type]

Crownek Green Energy Limited [Private Sector]; Government of Nigeria [Government Agency]

Implementing agencies [Type]

China National Heavy Machinery Corporation (CHMC) [State-owned Company]

Loan type

Some Information

Interest rate

3.0%

Gurarantee provided

No

Insurance provided

No