China Eximbank provides $23.3 million buyer's credit loan for Maputo International Airport Modernization and Expansion Project (Linked to Project ID#1222, #72890)

On September 25, 2008, the Government of Mozambique and China Eximbank signed a $23,301,644 buyer's credit loan (BCL) agreement for the Maputo International Airport Modernization and Expansion Project. The BCL carried the following borrowing terms: a 12-year maturity (estimated final maturity date: September 25, 2020), a 3-year grace period (estimated first repayment date: September 25, 2021), and an interest rate of 6-month LIBOR plus a 2.5% margin. The Government of Mozambique used the proceeds from the BCL (which was backed by a sovereign guarantee) to on-lend to Aeroportos de Moçambique, E.P., a state-owned enterprise in Mozambique. The BCL's (principal) amount outstanding was $15,534,429.16 as of December 31, 2016 and $11,650,821.85 as of December 31, 2017. On April 13, 2009, the Government of Mozambique and China Eximbank signed a $50 million concessional loan agreement for the Maputo International Airport Modernization and Expansion Project. The concessional loan carries an interest rate of 2%. Its maturity and grace period are unknown. Then, on December 16, 2010, the Government of Mozambique ratified a government concessional loan (GCL) agreement worth RMB 440,365,443 with China Eximbank to provide supplemental funding for the Maputo International Airport Modernization and Expansion Project. The GCL carries a 2% interest rate. Its other borrowing terms are unknown. The project involved the construction of new terminals and an increase in the airport’s passenger handling capacity – from 450,000 to 900,000 per year. More specifically, the project scope included the construction of a new international passenger terminal and the respective aircraft parking platform; the expansion of an existing passenger terminal and its transformation to serve domestic travelers; the construction of a VIP Presidential pavilion with its own access and a new parking facility, the remodeling of the existing VIP lounge for use by other individuals; the construction of a new cargo terminal with direct access and parking; the construction of a new control tower; the construction of a large new car parking lot; and re-planning of the roads surrounding the airport. Anhui Foreign Economic Construction Group (AFECC) was the contractor responsible for implementation. Construction began on April 16, 2009 and ended on June 10, 2010. An official project completion ceremony was then held on November 12, 2010. The project was originally scheduled to reach completion in June 2010. However, the China Eximbank BCL for the Maputo International Airport Modernization and Expansion Project financially underperformed vis-a-vis the original expectations of the lender. Aeroportos de Moçambique, E.P. entered a period of financial distress and defaulted on its BCL repayment obligations in 2016. The BCL was rescheduled (reprofiled) in 2017 such that principal repayments were deferred until 2019, although the final loan maturity date remained unchanged. Project ID#1222 captures the $50 million concessional loan; Project ID#21389 captures the $23.3 million BCL; and Project ID#72890 captures the RMB 440,365,443 GCL.

Additional details

1. This project is also known as Phase 1 of the Maputo International Airport Renovation Project. The Portuguese project title is Projecto de Modernização e Ampliação do Aeroporto Internacional de Maputo or Reabilitação do Aeroporto Internacional de Maputo. The Chinese project title is 马普托国际机场改扩建项目. 2. In the database of Chinese loan commitments that it released in July 2020, SAIS-CARI records the face value of this loan as $67 million. AidData records the face value that is recorded by Aeropuertos de Moçambique, E.P. 3. For the time being, AidData has estimated the all-in interest rate of the BCL by adding 2.5% to average 6-month LIBOR in September 2008 (3.337%). One source identifies the all-in interest rate as being equal to 4.2%.

Number of official sources

14

Number of total sources

28