China Eximbank provides RMB 326.3 million government concessional loan for Social Housing Project (Linked to Record ID#30210)

Project narrative

On January 4, 2012, the Chinese Government and the Government of Cape Verde signed a framework agreement on the provision of government interest-subsidized concessional loans in which the Government of Cape Verde requested RMB 402,840,000 to finance a Social Housing Project. Then, on February 15, 2012, the Chinese Government and the Government of Cape Verde signed an RMB 326.3 million government concessional loan (GCL) agreement [CHINA EXIMBANK GCL No 49 (2011) Total No (399)] for a Social Housing Project. This loan carried the following terms: a 2% interest rate, a 0% default (penalty) interest rate, a 20-year maturity, a 7-year grace period, 0.5% management fee, and a 0.75% commitment fee. The loan repayment period is 156 months or 13 years. The borrower agreed to deposit project-related revenues in a special account to facilitate repayment. During the same year, the Chinese Government and the Government of Cape Verde signed letters of exchange, which committed an RMB 76,700,000 interest-free loan for the same project. The proceeds of these two loans were used fully finance an RMB 402,840,000 commercial contract between Cape Verde’s Ministry of Local Government, Housing, and Territory Ordering (MDHOT) and China National Complete Plant Import and Export Corporation Limited (COMPLANT), which was signed on October 16, 2009. The GCL, which is captured via Record ID#30570, covered 81% of the cost of the commercial contract. The interest-free loan, which is captured via Record ID#30210, covered 19% of the cost of the commercial contract. The Social Housing Project involved the construction of construction of 1600 affordable housing units in support of the Government of Cape Verde’s “Casa para Todos” (Housing for All) Program. It supported housing developments in at least three different areas within the municipality of Praia: Palmarejo Grande, Tira-Chapéu, and Achada Grande Trás. COMPLANT was the contractor responsible for implementation and the project was underway as of June 29, 2012.