China Eximbank provides $500 million preferential buyer’s credit for Phase 1 of Abuja Light Rail Network Project (Linked to Project ID#73400)

On November 7, 2012, China Eximbank and the Government of Nigeria signed a $500,000,000 preferential buyer’s credit (PBC) agreement for Phase 1 of the Abuja Light Rail Network Project. The Federal Government of Nigeria made a counterpart contribution to the project worth $314 million. The PBC (loan) carried the following terms: a 20 year maturity, a 7 year grace period, and a 2.5% interest rate. The final maturity date of the loan is September 21, 2032. As of December 31, 2020, Nigeria’s Debt Management Office (DMO) reported that the China Eximbank PBC (loan) had achieved a 100% disbursement rate ($500 million) and the borrower had made interest repayments worth $66.78 million and principal repayments worth $38.46 million to the lender. As such, the loan’s (principal) amount outstanding, as of December 31, 2020, was $461.54 million. Phase 1 involved the construction of a light rail network in Abuja that is 45 kilometers in length with a designed maximum speed of 100 kilometers per hour. The network was designed to connect the center of Abuja, the Abuja-Kaduna Railway (Akha Railway), and the terminal of Abuja Airport. It involves two lines (the Yellow Line and the Blue Line) that pass through 13 stations. The Yellow line travels from Abuja's Central Business District to Nnamdi Azikiwe International Airport (via Stadium, Kukwaba I, Kukwaba II, Wupa, Idu, and Bassanjiwa). The Blue Line travels from Idu to Kubwa (via Gwagwa, Deidei, Kagini, and Gbazango). China Civil Engineering Construction Company (CCECC) was the EPC contractor responsible for implementation of Phase 1. It was awarded an EPC contract in early 2007 and a formal groundbreaking ceremony took place in May 2007. However, construction did not begin until May 28, 2009. By September 2012, CCECC had achieved a 25% completion rate. As of May 2017, it had achieved a 93% completion rate. Then, on July 12, 2018, Phase 1 was completed and opened for use. Phase 2 (captured via Project ID#73400) will connect the main urban area of Abuja with surrounding satellite cities.

Additional details

1. The Chinese project title is 阿布贾城铁项目 or 的首都阿布贾铁路轨道交通项目 or 阿布贾城铁一期. 2. In the database of Chinese loan commitments that SAIS-CARI released in July 2020, it records the maturity length of this loan as 19 years. AidData records the maturity length (20 years) that is reported by Nigeria’s Debt Management Office (DMO) in its “Status of Loans Obtained from China Exim As At March 31, 2020” publication.

Number of official sources

16

Number of total sources

36