China Eximbank provides buyer’s credit loan for Phase 1 of the 66kV Malabo Power Grid Project (Linked to Project ID#61631, #484)
Funding agency [Type]
Export-Import Bank of China [State-owned Policy Bank]
Energy (Code: 230)
Export Buyer's Credit
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 99.91 million euros. This project, which involved a the construction of a 66kV power transformation station in Malabo, was completed in May 2011.Phase II of the 66kV Malabo Power Grid Project is captured in linked ProjectID#61631.
This project is also known as the Malabo Gas Power Plant Expansion Project. 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. AidData is not able to identify the face values of all subsidiary loans approved through this $2 billion oil-backed buyer’s credit credit facility agreement (captured in Project ID#484). Therefore, to effectively approximate the total amount of debt issued through the $2 billion oil-backed credit facility agreement and eliminate the risk of double-counting, AidData records the full value of the $2 billion oil-backed credit facility agreement but it does not record transaction amounts for the individual subsidiary loans approved through this facility agreement.
Number of official sources
Number of unofficial sources
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]
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.