Project ID: 195

China Eximbank provides $500 million preferential buyer’s credit for Phase 1 (Abuja-Kaduna Section) of Nigerian Railway Modernization Project (linked to #1844, #60848, #60767, #60850)

Commitment amount

$ 604316577.7

Constant 2017 USD

Summary

Funding agency [Type]

Export-Import Bank of China [State-owned Policy Bank]

Recipient

Nigeria

Sector

Transport and storage (Code: 210)

Flow type

Export Buyer's Credit

Concessional

Yes

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

Completion (The next section lists the possible statuses.)

Pledge

Commitment

Implementation

Completion

Suspended

Cancelled

Milestones

Commitment year

2010

Implementation

2011

2006-10-01

Planned start

2011-02-20

Actual start

Completion

2016

2016-07-28

Actual

Description

On December 20, 2010, China Eximbank and the Government of Nigeria signed a $500 million preferential buyer’s credit (PBC) agreement for Phase 1 (Abuja-Kaduna Section) of the Nigerian Railway Modernization Project. The PBC carried the following terms: 20 year maturity, 7 year grace period, and a 2.5% interest rate. The final maturity date of this loan is September 21, 2030. As of March 31, 2020, Nigeria’s Debt Management Office (DMO) reported that the China Eximbank loan for this project had fully disbursed. Phase 1 of this project involved the modernization of a 186.5 km railway section from Abuja (Idu), the country’s federal capital, to Kaduna, the country’s commercial capital. This section is part of a larger 1,313 km standard gauge railway that runs from from Lagos to Kano and carries both passenger and cargo. China Civil and Engineering Construction Company (CCECC) was the contractor responsible for implementation. CCECC signed an EPC contract with the Government of Nigeria on October 26, 2009. Construction began in February 20, 2011. Then, on July 4, 2013, a track-laying ceremony took place. The railway officially began commercial operations on July 28, 2016. In 2020, Pew Research Center released an analysis of this project. It found that, during the railway’s construction period, Nigerians living near the railway were less likely than those farther away to express a favorable view of China. However, approval of China among those nearby rebounded to levels more in line with other Nigerians after the railway’s completion.”

Additional details

This project is also known as Phase 1 (Idu-Kaduna) of Nigerian Railway Modernization Project or Segment 1 of the Lagos-Kano Railway Project. The Chinese project title is 阿布贾-卡杜纳段(阿卡铁路) or 为尼铁现代化项目分段实施的第一段工程. In the database of Chinese loan commitments that SAIS-CARI released in July 2020, it does not record a grace period and it records the maturity length of this loan as 19 years. AidData records the borrowing terms (7 year grace period and 20 year maturity) that are 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

18

Number of unofficial sources

30

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Details

Cofinanced

No

Receiving agencies [Type]

Government of Nigeria [Government Agency]

Implementing agencies [Type]

China Civil Engineering Construction Corporation (CCECC) [State-owned Company]

Loan type

Concessional

Maturity

20 years

Interest rate

2.5%

Grace period

7 years

Grant element

52.39978832%

Gurarantee provided

No

Insurance provided

No