Project ID: 2004

China Eximbank provides $260 million preferential buyer’s credit for Phase 1 of Kpong Water Expansion Supply Project (Linked to Project ID#91808)

Commitment amount

$ 362109003.30702245

Adjusted commitment amount

$ 362109003.31

Constant 2021 USD


Funding agency [Type]

Export-Import Bank of China (China Eximbank) [State-owned Policy Bank]




Water supply and sanitation (Code: 140)

Flow type


Level of public liability

Central government debt

Financial distress






Mixed (The next section lists the possible statuses.)





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


Completion (The next section lists the possible statuses.)










Actual start


Planned complete


Actual complete




On September 20, 2010, China Eximbank and the Government of Ghana’s Ministry of Finance and Economic Planning signed a $260,000,000 preferential buyer's credit (PBC) agreement for Phase 1 of the Kpong Water Expansion Supply Project (captured via Project ID#2004). The PBC carries the following borrowing terms: a 21.25 year maturity, a 5 year grace period, a 2% interest rate, a 0.75% commitment fee, and a 1% management fee. The total project cost is $273 million. China Eximbank covered 95% of the total project cost and the Government of Ghana covered the remaining 5% ($13 million). The Government of Ghana used proceeds from the PBC to on-lend to Ghana Water Company Limited (GWCL), a Ghanaian state-owned company, a Ghanaian state-owned enterprise. To this end, the Government of Ghana signed a $276,250,000 subsidiary loan agreement with the GWCL on August 25, 2015. The subsidiary loan carries a 15 year maturity and a 2% interest rate. The (principal) amount outstanding under the China Eixmbnak loan (PBC) was GHS 991,940,000 ($177,132,142) as of December 31, 2020 and GHS 933,500,000 ($179,519,230) as of December 31, 2021. The purpose of the Kpong Water Expansion Supply Project was to increase the supply of water from Kpong Head Works to Accra and Tema and thereby improve the reliability of potable water delivery to domestic, commercial and industrial customers. It involved construction of a new 353,000 m3 per day intake, expansion of treatment plant to 250,000 m3 per day and construction of new transmission mains through Dodowa, Adenta to Accra Booster Station. Other works involved the provision of dedicated electricity supply, distribution improvement and construction of terminal reservoirs at Madina, Boi and Okpong. The project was implemented in 3 phases. Phase 1 involved the construction of a new intake and water pumping station for bulk water supply from Kpong with capacity of 196,000 cubic meters per day. Phase 2 involved the construction of a new treatment plant of 186,000 cubic meters or 41 million gallons a day. Phase 3 involved the construction of new treated water pumping station as well as a pressure transmission (mains) system from Kpong to Accra through Oyibi to terminate at Okponglo (a suburb of Accra). The project beneficiary areas included Adenta, Madina, Kwabenya, Ashongman, North Legon, East Legon, West Legon, Ashaley Botwe, Haatso, Boi, Asofaa, Dome and surrounding areas. China Gezhouba Water and Power Group Company Limited was the contractor responsible for implementation. Its work was overseen by Ghana Water Company Limited (GWCL). Construction began on June 1, 2011 and official project completion ceremony took place on December 23, 2014. However, the project was not fully complete until May 28, 2015. The originally scheduled contractual completion date was June 2015. In 2019, Ghana Water Company Limited (GWCL) was reportedly negotiating a $373,000,000 loan agreement with China Eximbank to fund the second phase of this project (captured via Project ID#91808). The Government of Ghana's Development Co-operation Management Information System (Gh-DCMIS) identifies this pipeline project as having an expected loan signing date of August 25, 2022, an expected project commencement date of August 10, 2022, and an expected project completion date of August 30, 2023. There are some indications that the China Eximbank loan for Phase 1 of the Kpong Water Expansion Supply Project may have financially underperformed vis-a-vis the original expectations of the lender. According to the World Bank’s International Development Statistics, the Government of Ghana had accumulated principal and interest arrears to one or more official sector Chinese creditors worth $908,337,346.70) in 2020 ($763,228,526.60 in principal arrears and $145,108,820.10 in interest arrears). Then, on December 19, 2022, the Government of Ghana announced a sovereign default, suspending debt service on its Eurobonds, its commercial loans, and most of its bilateral loans.

Additional details

1. The Chinese project title is 凯蓬供水扩建工程项目 or 加纳凯蓬供水项目. 2. In the database of Chinese loan commitments that SAIS-CARI released in July 2020, it records the maturity length of this loan as 15 years. However, AidData records a maturity length of 20 years since multiple official sources cite this figure and Ghana’s Ministry of Finance and Economic Planning identified the loan agreement date as September 20, 2010 and final maturity date as January 21, 2031. 3. The (principal) amounts outstanding are drawn from the Ghanaian Ministry of Finance’s Annual Public Debt Reports. These amounts are reported in GHS by the Ministry of Finance. AidData has estimated the USD amounts by applying the average GHS-to-USD exchange rate in 2020 (5.6-to-1) and the average GHS-to-USD exchange rate in 2021 (5.2-to-1). 4. The Loan/Grant Code and Project Identification number for Phase 2 of the Kpong Water Expansion Supply Project in the Gh-DCMIS) are CH-GH-2021 and GHA/000927.

Number of official sources


Number of total sources


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Direct receiving agencies [Type]

Ghana Ministry of Finance [Government Agency]

Indirect receiving agencies [Type]

Ghana Water Company Ltd. [State-owned Company]

Implementing agencies [Type]

China Gezhouba Water and Power Group, ltd. [State-owned Company]

Ghana Water Company Ltd. [State-owned Company]

Loan Details


20 years

Interest rate


Grace period

5 years

Grant element (OECD Grant-Equiv)


Bilateral loan

Export buyer's credit

Investment project loan

Preferential Buyer's Credit