China Eximbank provides $984.23 million preferential buyer’s credit for 700MW Zungeru Hydroelectric Power Plant Project

On October 19, 2012, a joint venture of Sinohydro and China National Electric Engineering Co (CNEEC) signed an EPC contract with the Government of Nigeria for the Zungeru Hydropower Project. Then, on September 28, 2013, China Eximbank and the Government of Nigeria signed a $984.23 million preferential buyer’s credit (PBC) agreement for the 700MW Zungeru Hydroelectric Power Plant Project. The PBC carries the following terms: 20 year maturity, 7 year grace period, and a 2.5% interest rate. The final loan maturity date is September 21, 2033. The total cost of the project is $1.293 billion and the proceeds from the PBC agreement are being used to cover approximately 75% of the total project cost. The Government of Nigeria agreed to cover the remaining 25% of the cost. The project involves the construction of a dam, power components, transmission lines and associated substations for the evacuation of power from the dam. On May 28, 2013, a groundbreaking ceremony was held. Then, on January 22, 2018, the placement of the first silo of Roller Compacted Concrete (RCC) took place. As of June 18, 2020, the Government of Nigeria’s Debt Management Office (DMO) reported that China Eximbank had disbursed 52.65% of the original face value of the PBC. As of October 28, 2019, the project is 68% complete. The project is scheduled for completion by December of 2021.

Additional details

This project is also known as the Zungeru 4x175MW Hydropower Plant. The Chinese project title is 宗盖鲁水电站. Boston University’s China's Global Energy Finance Database identifies the face value of this loan as $975 million and SAIS-CARI report the maturity length of this loan as 19 years. AidData records the face value ($984,320,000) and maturity length (20 years) that is reported by Nigeria’s Debt Management Office (DMO) in its “Status of Loans Obtained from China Exim As At March 31, 2020” publication.

Number of official sources

19

Number of unofficial sources

19