Project ID: 289

China Eximbank provides $541.6 million buyer's credit loan for Phase 1 of the Memve'ele Hydroelectric Power Plant Project in Cameroon (Linked to Project ID#57586)

Commitment amount

$ 578397559.0

Constant 2017 USD

Summary

Funding agency [Type]

Export-Import Bank of China [State-owned Policy Bank]

Recipient

Cameroon

Sector

Energy (Code: 230)

Flow type

Export Buyer's Credit

Concessional

Yes

Category

Intent

Mixed (The next section lists the possible statuses.)

Commercial

Development

Representational

Mixed

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

Status

Completion (The next section lists the possible statuses.)

Pledge

Commitment

Implementation

Completion

Suspended

Cancelled

Milestones

Commitment year

2011

Implementation

2012

2012-06-15

Actual start

Completion

2016

2017-01-01

Planned

2016-08-01

Actual

Geography

Description

In 2011, China Eximbank and the Cameroonian Ministry of Economy, Planning, and Regional Development signed a buyer's credit loan (BCL) agreement (Contract No. BLACAM 2011001) worth $541,566,018 for Phase 1 of the 211 MW Memve'ele Hydroelectric Power Plant Project (or 喀麦隆曼维莱水电站). The borrowing terms of the BCL are as follows: 15-year maturity, 5-year grace period, 3.607% interest rate (6 month LIBOR in 2011 was .507% + 3.10% margin), 0.50% commitment fee, and 0.50% management fee. The Ministry of Finance of the Republic of Cameroon agreed to provide the lender with a repayment guarantee (as defined in Article 1 of the BCL agrement). The borrower purchased buyer's credit insurance from Sinosure. The borrower was to use the proceeds of the loan to finance 85% of the total cost ($637,136,492) of a commercial contract between Cameroon’s Ministry of Water and Energy and Sinohydro Corporation, which was signed on 12 April 2012. On 15 June 2012, President Paul Biya presided over the ceremony to lay the foundation stone of the project. Construction was completed in August 2016 by POWERCHINA.The Memve'ele Hydroelectric Power Plant Project is a large-scale hydro-electric run-of-river dam and hydroelectric generator plant that involves a barrage that is 1,260 meters long and 14 meters high, with two overflow channels and a grand spillway to the generating plant. The dam site is around 26 square kilometers. The plant has four generators and turbines each. It is expected to inject 211 MW of electricity into Cameroon's energy supply network. The plant is located in Nyabizan on the Ntem River in the South region, 300 km from Yaounde.Project ID#57586 captures a separate China Eximbank loan worth $141.8 million loan for Phase 2 of the 211 MW Memve'ele Hydroelectric Power Plant Project.

Additional details

1. The Chinese project title is 喀麦隆曼维莱水电站. The French project title is Projet de construction du barrage hydroélectrique de Memve’ele.2. The SAIS-CARI database of Chinese loan commitments released in July 2020 records the following lending terms: an interest rate of 6-month Euribor + 3.1% margin, a 16 year maturity, and a 6 year grace period. AidData records the borrowing terms that are specified in the BCL agreement itself (15 year maturity, 5 year grace period, 6- month LIBOR + 3.1% margin).3. AidData estimates the 'all-in' interest rate (3.607%) of this loan by taking the average 6 month LIBOR rate in 2011 (.507%) and then adding the 3.10% margin.4. The BCL agreement can be accessed in its entirety via SourceID#67490 and https://www.documentcloud.org/documents/20485598-cmr_2011_173.5. The project ID number for this transaction in Cameroon's Development Assistance Database (DAD) is CAM/000745.

Number of official sources

16

Number of unofficial sources

13

Download the dataset

Details

Cofinanced

No

Receiving agencies [Type]

Cameroon Ministry of Economy, Planning, and Regional Development (MINEPAT) [Government Agency]

Implementing agencies [Type]

Cameroon Ministry of Mining, Water, and Energy [Government Agency]; Power Construction Corporation of China Ltd. (POWERCHINA) [State-owned Company]; SinoHydro [State-owned Company]

Accountable agencies [Type]

Loan type

Concessional

Maturity

15 years

Interest rate

3.6069999999999998%

Grace period

5 years

Management fee

0.5

Commitment fee

0.5

Grant element

37.71656959%

Gurarantee provided

Yes

Insurance provided

Yes