China Eximbank provides buyer’s credit loan for Phase 1 of the 66kV Malabo Power Grid Project (Linked to Project ID#61631, #484)
Commitment amount
$ 145193582.55678487
Adjusted commitment amount
$ 145193582.56
Constant 2021 USD
Summary
Funding agency [Type]
Export-Import Bank of China (China Eximbank) [State-owned Policy Bank]
Recipient
Equatorial Guinea
Sector
Energy (Code: 230)
Flow type
Loan
Level of public liability
Central government debt
Infrastructure
Yes
Category
Project lifecycle
Geography
Description
In 2006, China Eximbank and the Government of Equatorial Guinea signed a $2 billion oil-backed export buyer’s credit credit facility agreement for various infrastructure projects (captured in Project ID#484). All subsidiary loans approved under this facility agreement carry the following terms: a 5.5% interest rate, 5 year maturity, and 2 year grace period. Then, in 2009, China Eximbank and the Government of Equatorial Guinea signed a subsidiary buyer’s credit loan agreement for Phase 1 of 66kV Malabo Power Grid Project. The proceeds of the loan were used to finance a commercial contract with China Machinery Engineering Corporation (CMEC) worth EUR 99.91 million. This project, which involved a the construction of a 66kV power transformation station in Malabo, was completed in May 2011. The China Eximbank loan for Phase II of the 66kV Malabo Power Grid Project is captured via Project ID#61631.
Additional details
1. This project is also known as the Malabo Gas Power Plant Expansion Project. 2. The Chinese project title is 马拉博燃气电厂扩容项目 or 赤道几内亚马拉博燃气电厂扩容项目. 3. For the time being, AidData assumes that the face value of the buyer's credit loan is equivalent to 85% (EUR 84,923,500) of the total cost (EUR 99,910,000) of the commercial contract.
Number of official sources
12
Number of total sources
13
Details
Cofinanced
No
Direct receiving agencies [Type]
Government of Equatorial Guinea [Government Agency]
Implementing agencies [Type]
China Machinery Engineering Corporation (CMEC) [State-owned Company]
Government of Equatorial Guinea [Government Agency]
Collateral
The buyer's credit loans under the $2 billion USD facility were secured via deposit accounts opened by Government of Equatorial Guinea in China Eximbank. The Government of Equatorial Guinea deposited the proceeds from hydrocarbon exports into these accounts.A repayment guarantee equivalent to 30 percent (minimum) of the outstanding stock of debt was required to be in the accounts at all times.
Loan Details
Maturity
5 years
Interest rate
5.5%
Grace period
2 years
Grant element (OECD Grant-Equiv)
9.6724%