China Eximbank provides $96.3 million loan for 19.2MW Liouesso Hydroelectric Dam Construction Project (Linked to Project ID#60219)

On June 19, 2006, China Eximbank and the Republic of Congo signed a $1.6 billion loan framework agreement — also known in the Republic of Congo as the “strategic partnership” (“partenariat stratégique”) — that allowed the Republic of Congo to obtain China Eximbank loans for infrastructure projects through a securitization mechanism: Société Nationales des Pétroles Congolais (SNPC)—the country’s state-owned oil company—agreed to deposit a portion of the cash proceeds from its oil exports into an escrow account that is controlled by China Eximbank. This framework agreement (captured in Project ID#60219) was ratified on October 26, 2006. One of the subsidiary loans that was approved through the framework agreement was a $96,363,372.65 loan in 2011 for the 19.2MW Liouesso Hydroelectric Dam Construction Project. The estimated borrowing terms of the loan are as follows: 19-year maturity, 4-year grace period, and a 0.25% interest rate. Its (principal) amount outstanding was $85,218,355 as of December 31, 2019. The project involved the construction of a 19.2MW hydroelectric power plant — with three hydroelectric power generation units — on the Lengoué River in Mokéko district and the department of Sangha. The plant was designed with 3 sets of Francis vertical shaft suspension-type water-turbine generator units. It was meant to supply power to the neighboring towns of Ouesso and Mokéko and their surrounding localities via adjoining transmission lines. China Gezhouba Group Company Limited was the contractor responsible for implementation. Construction commenced on May 18, 2012 and ended on June 28, 2016. The power plant was connected to the national grid in August 2016. The plant was officially inaugurated on May 29, 2017.

Additional details

1. The French project title is Barrage Liouesso or la centrale hydroélectrique de Liouesso. The Chinese project title is 里韦索水电站 or 利韦索水电站导 or 利韦索水电站. 2. In the database of Chinese loan commitments that SAIS-CARI released in July 2020, it identifies a $105 million China Eximbank loan (with a maturity length of 20 years) for this project. AidData relies on the face value of the loan ($96,363,372.65) and the maturity length (19 years) that is recorded by the Republic of Congo’s Public Debt Agency (Caisse Congolaise d’Amortissement or CCA) and Délégation Générale des Grands Travaux (DGGT). 3. According to a 2019 report published by the Republic of Congo’s National Assembly, all loans approved under the June 19, 2006 framework agreement had an interest rate of 0.25% and grace periods between 3 and 5 years. Therefore, AidData assumes an interest rate of 0.25%. Also, since the grace period of the China Eximbank loan for the 19.2MW Liouesso Hydroelectric Dam Construction Project is missing, AidData imputes a value (4 years) at the middle of the distribution of this range as an approximation.

Number of official sources

13

Number of total sources

26