Project ID: 30543

China Eximbank provides $700 million USD loan for Phase II of the Khartoum International Airport Construction Project (Linked to #85332)

Commitment amount

$ 674625838.1

Constant 2017 USD

Not recommended for aggregates

This project is not recommended for use in creating aggregated sums. See the documentation for more information about this criteria.

Summary

Funding agency [Type]

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

Recipient

Sudan

Sector

Transport and storage (Code: 210)

Flow type

Loan

Concessional

Yes

Category

Intent

Development (The next section lists the possible statuses.)

Commercial

Development

Representational

Mixed

Financial Flow Classification

ODA-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

Cancelled (The next section lists the possible statuses.)

Pledge

Commitment

Implementation

Completion

Suspended

Cancelled

Milestones

Commitment year

2014

Implementation

2019

2019-01-01

Actual start

Geography

Description

On 8 July 2013, China Harbour Engineering Company (CHEC) and Sudan Airport Holdings Co. Ltd. (SAHL) signed a Financing and EPC (F+EPC) contract worth $700 million USD for Phase II of the Khartoum International Airport Construction Project (see CHEC [source ID 40447] and MOFCOM [see ID 65240] press releases). Then, on 17 January 2014, CHEC signed a memorandum of understanding (MOU) pledging to obtain financing from China Eximbank for at least $680 million USD (see SAHL press release [source ID 118876]). Then, on 16 December 2014, China Eximbank and the Sudan Ministry of Finance signed the final concessional loan agreement worth $700 million USD for Phase II. This loan reportedly carried the following terms: 20-year maturity, 5-year grace period, and 2.5% interest rate (see SAHL press release [source ID 65242], Chinese Loans to Africa Database). The first drawdown of the loan took place in May 2016. The F+EPC contract signed in July 2013 stipulated that CHEC would complete the project within 40 months. The project involves the construction of two 400 meter runways, with a total area of 79 square kilometers. The project also involves the construction of an international hotel with 300 rooms, a conference center, a business center and a mall of 8,000 square meters.Construction was initially set to begin in 2015; however, the implementation was delayed and CHEC was removed from the project for unknown reasons. According to the Global Construction Review article, Summa, a Turkish company, is now implementing Phase 2 of the project, which began in January 2019. The China Eximbank loan was almost certainly conditioned on CHEC carrying out the project, so this $700 million USD loan was probably cancelled as well. It is unclear how much was disbursed before cancellation (see Project #85332).

Additional details

The Chinese project title is 席喀土穆新国际机场项目. The Arabic project title is المرحله الثانية من مشروع مطار الخرطوم الدولي الجديد. It is also called the KNIA Project. The transaction amount is not totally clear. Some sources, both official and unofficial, say the Phase II EPC contract was $700 million USD and others say it was $680 million USD. Some sources say the China Eximbank loan for Phase II was also $700 or $680 million USD. AidData relies on what CHEC and SAHL reported, which is that both were worth $700 million USD. JSB Market Research (see source ID 118873) reported that the January 2014 contract was for phase II as well as 'ongoing preparatory works' for phase I. Moreover, they say that 'In July 2015, the technical committee of the cabinet economic development sector approved the loan agreement of US$700 million for financing the project. Council of Ministers approved loan agreement of US$665 million that was signed between the Ministry of Finance, and the Chinese Export-Import Bank.' JSB also claims that China Eximbank signed a loan agreement for phase III in June 2016. None of this is confirmed by official sources.

Number of official sources

15

Number of unofficial sources

13

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Details

Cofinanced

No

Receiving agencies [Type]

Government of Sudan [Government Agency]

Implementing agencies [Type]

China Harbour Engineering Co., Ltd. [State-owned Company]; Sudan Airports Holding Company [State-owned Company]

Loan type

Concessional

Maturity

20 years

Interest rate

2.5%

Grace period

5 years

Grant element

49.68047528%

Gurarantee provided

No

Insurance provided

No