Project ID: 30244

CET provides $1.002 billion supplier's credit for 500kV Power Transmission Line of the Great Ethiopian Renaissance Dam (GERD) Project

Commitment amount

$ 1131387287.7569714

Adjusted commitment amount

$ 1131387287.76

Constant 2021 USD

Summary

Funding agency [Type]

China Electric Power Equipment and Technology Company (CET) [State-owned Company]

Recipient

Ethiopia

Sector

Energy (Code: 230)

Flow type

Loan

Level of public liability

Other public sector debt

Infrastructure

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

2013-04-13

Planned start

2014-06-01

Actual start

2016-02-29

Planned complete

2016-06-01

Actual complete

2017-08-01

NOTE: Red circles denote delays between planned and actual dates

Geography

Description

On April 26, 2013, China Electric Power Equipment and Technology Co, Ltd (CET) — a subsidiary of the State Grid Corporation of China (SGCC) — and the Ethiopian Electric Power Corporation (EEPCO) signed a $1,002,970,414 supplier's credit (loan) agreement and commercial contract for the 500kV Power Transmission Line of the Great Ethiopian Renaissance Dam (GERD) Project. Mihret Debebe from the Ethiopian Electric Power Corporation and Jia Zhi Qiang from SGCC signed the agreement. The loan carries the following borrowing terms: a 3.08% interest rate, a 3 year grace period, and a 15 year maturity. The borrower was expected to use the proceeds of the loan to finance approximately 85% of the total cost of a commercial (EPC) contract worth approximately $1.2 billion between CET and EEPC. The Ethiopian Government was responsible for directly funding the remaining 15% of the commercial contract cost. The purpose of the project was to evacuate power from the 6,000 MW Great Ethiopian Renaissance Dam (GERD) via 500kV and 400kV power transmission lines. The project involved the construction of transmission lines (measuring somewhere between 1,136 km and 1,338 km in length), the construction of two 500kV substations, and the expansion of three existing 400kV substations. More specifically, the project involved the construction of the 345 km GERD-Dedesa transmission line (two 500kV double circuit transmission lines from GERD to the new Dedesa substation); the construction of the 275 km Dedesa-Holeta transmission line (two 500kV double circuit transmission lines from the Dedesa substation to the Holeta substation); the construction of the Holeta-Akaki II transmission line (a 400kV transmission line from the Holeta substation to the Akaki II substation); the construction of the Holeta-Sebeta II transmission line (a 400kV transmission line from the Holeta substation to the Sebeta II substation); the construction of a Holeta-Sululta II transmission line (a 400kV transmission line from the Holeta substation to the Sululta II substation); the construction of the 500kV Dedesa and Holeta substations; and the expansion of the 400kV Akaki II, Sebeta II, and Sululta II substations. CET was the EPC contractor responsible for implementation. The project was originally scheduled to begin construction in 2014 and reach completion by 2016. The project officially commenced on January 10, 2014. However, construction did not begin until February 29, 2016 in Jimna city. The project was ultimately completed in August 2017.

Additional details

1. This project was also known as the GDHA 500 kV Power Transmission and Transformation Project and the Grand Renaissance Dam-Transmission and Sub-station Dedesa-Holeta 500Kv Project, the Grand Renaissance Dam-Transmission and Sub-station Dedesa-Holeta 500Kv Project, and the GERD-Dedesa-Holeta-Akaki (GDHA) 500KV power transmission and transformation project. The Chinese project title is 塞俄比亚复兴大坝500千伏输电项目 or 塞俄比亚复兴大坝水电站500千伏送出工程 or GDHA 埃塞俄比亚复兴大坝 500KV 超高压输变电项目. 2. The Ethiopian Electric Power Corporation (EEPC) is a state-owned enterprise. 3. Some sources identify the total cost of the commercial contract as $1.458 billion rather than $1.2 billion. This issue warrants further investigation. 4. The system identification number for the CET loan (supplier’s credit) in the Government of Ethiopia’s Aid Management Platform (AMP) is 87143319101798. The AMP identifies the value this loan commitment as ETB 18,642,572,862. 1 Ethiopian Birr (ETB) was equal to 0.53 United States Dollars (USD) in April 2013 (at the time that the loan agreement was signed)

Number of official sources

16

Number of total sources

40

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Details

Cofinanced

No

Direct receiving agencies [Type]

Ethiopian Electric Power Corporation (EEPCo) [State-owned Company]

Implementing agencies [Type]

Ethiopia Electric Power Corporation [State-owned Company]

State Grid Corporation of China (SGCC) [State-owned Company]

Loan Details

Maturity

15 years

Interest rate

3.08%

Grace period

3 years

Grant element (OECD Grant-Equiv)

33.6191%

Bilateral loan

Investment project loan

Supplier's credit/Export seller's credit