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

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 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 in Project ID#30570, covered 81% of the cost of the commercial contract. The interest-free loan, which is captured in Project 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.

Additional details

This project is also known as the Casa para Todos Program (PCT). The Portuguese project title is Projecto de Habitação Social or Programa Casa para Todos (PCT). The Chinese project title is 佛得角社会福利房项目 or 社会福利房项目.Neither of the loans that supported the Social Housing Project are included in the database of Chinese loan commitments that SAIS-CARI released in July 2020. The loan agreement can be accessed in its entirety at https://www.dropbox.com/s/ixub2x1xxmcx5pl/2012%20China%20Eximbank%20Loan%20Agreement%20for%20Housing%20Project%20in%20Cape%20Verde.pdf?dl=0 and https://www.documentcloud.org/documents/20488117-cpv_2012_453

Number of official sources

13

Number of unofficial sources

10