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Overview

China Eximbank pledges $400 million loan for Eastern Corridor Road Project (Linked to Record ID#28056)

Commitments (Constant USD, 2023)$514,455,389
Commitment Year•2010Country of Activity•GhanaDirect Recipient Country of Incorporation•GhanaSector•Transport And StorageFlow Type•Loan

Status

Project lifecycle

Pipeline: Pledge

Pipeline: PledgePipeline: CommitmentImplementationCompletion

Timeline

Key dates

Commitment date
Jan 1, 2010
End (planned)
Jan 1, 2013
Last repayment
Dec 27, 2029

Stakeholders

Organizations involved in projects and activities supported by financial and in-kind transfers from Chinese government and state-owned entities

Ultimate beneficial owners

At least 25% host country ownership

Funding agencies

State-owned Policy Banks

  • Export-Import Bank of China (China Eximbank)

Receiving agencies

Government Agencies

  • Government of Ghana

Implementing agencies

State-owned companies

  • China State Construction Engineering Corporation (CSCEC)

Loan desecription

China Eximbank pledges $400 million loan for Eastern Corridor Road Project (Linked to Record ID#28056)

Interest type•UnknownMaturity•20 years

Narrative

Full Description

Project narrative

In 2010, China Eximbank agreed in principal to provide a $400 million loan for the Eastern Corridor Road Project in Ghana. The loan would carry a maturity of 20 years and China State Construction Engineering Corporation was identified as the contractor responsible for implementation. The Eastern Corridor Road Project, which is also known as Nkwanta-Oti Damango Road Project, would link Northern Ghana to the south through the Volta Region, giving drivers an alternative and shorter route, including links to Burkina Faso, Mali, and Niger. The project stretches from Tema through Asikuma, Hohoe, Jasikan, Bimbilla to Yendi, and Nakpanduri to Kulungugu. The project involved the construction of a single two-lane carriageway, 3.5 meters per lane with a 2.5 meter hard shoulder on each side, drainage structure, lay-bys in specific towns and villages, bridge upgrades and relocation of utilities. The project was going to be funded through a $10.4 billion concessional credit package loan that the Government of Ghana signed with China Eximbank on September 22, 2010 (see Record ID#28056). However, this loan was suspended in 2015. The Government of Ghana subsequently secured loans from the Africa Development Bank and the OPEC Fund for International Development for this project. As of May 2022, the construction was ongoing. In September 2022, the President Akufo-Addo announced that the construction of a number of roads would be completed in 2023.