China Eximbank provides RMB 618.3 million government concessional loan for Taoussa Hydroelectric Power Plant Construction Project

On September 21, 2011, the Minister of Foreign Affairs in Mali, Soumelylou Boubeye, and China's Assistant Minister of Commerce Yu Jianhua signed an agreement, which signaled the Chinese Government’s interest in financing the construction of a hydroelectric project in Taoussa. Then, on September 16, 2014, China Eximbank and the Government of Mali signed an RMB 618,312,369.81 government concessional loan (GCL) agreement for the Taoussa Hydroelectric Power Plant Construction Project. The borrowing terms of the loan are unknown, but the IMF reports that the grant element of the loan is 29.7%. This loan was ratified by Mali’s Parliament in January 2015. The proceeds of this loan were used to finance a commercial contract between the Malian Government and China Gezhouba Group Company (CGGC), which was signed on December 1, 2009. This project involved the supply and installation of hydroelectric equipment for the Taoussa dam power station (Lot 3), to the supply and installation of electric power transmission lines. and transformer stations of the Taoussa dam (Lot 4), for the construction of the exploitation site of the Taoussa Development Project (Lot 5). Lot 1 (civil engineering construction works) is being funded by the Islamic Development Bank (ISDB), the Kuwaiti Fund for Arab Economic Development, the Abu Dhabi Fund, the Arab Bank for the Economic Development of Africa, the Saudi Fund for Development, the OPEC Fund for International Development, the International Bank for Trade and Development (BICD), and the Government of Mali. Lot 2 (supply and installation of hydromechanical equipment) is being financed by ISDB. Sinohydro is responsible for Lots 1 and 2. CGGC is responsible for Lots 3, 4, and 5. The project officially commenced on February 6, 2010, and the project was expected to take 54 months to complete (August 6, 2014). However, it has faced many delays and difficulties because of violence and instability in Gao region within northern Mali.

Additional details

1. The French project title is Projet de centrale hydroélectrique de Taoussa or Le barrage de Taoussa or Le Projet d'Aménagement de Taoussa. 2. The Chinese project title is 马里塔乌萨水电站正. This loan is not included in the database of Chinese loan commitments that SAIS-CARI released in July 2020.

Number of official sources

14

Number of total sources

27