Project ID: 31049

China Eximbank provides $1 billion master facility agreement for various infrastructure and industrial projects (linked to #58433, #58414)

Commitment amount

$ 971661870.2

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.

Umbrella project

This project is classified as an "umbrella" project, and is connected to related projects.

Summary

Funding agency [Type]

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

Recipient

Niger

Sector

Other multisector (Code: 430)

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

2013

2013-09-30

Planned implementation start

Description

On 30 September, 2013, China Eximbank and the Government of Niger signed a $1 billion master facility agreement for various infrastructure and high-yield industrial projects (See: The National Assembly approves the ratification of the loan agreement Exim Bank of China of one billion US dollars intended for the realization of several projects of development). China Eximbank agreed to issue subsidiary loans through this master facility agreement under the following conditions: 25 year maturity, 5 year grace period, and 2% interest rate (See: NIGER SIXTH AND SEVENTH REVIEWS UNDER THE EXTENDED CREDIT FACILITY ARRANGEMENT, REQUEST FOR WAIVERS OF NONOBSERVANCE OF PERFORMANCE CRITERIA, REQUEST FOR AUGMENTATION OF ACCESS, AND EXTENSION OF THE CURRENT ARRANGEMENT—PRESS RELEASE; STAFF REPORT; AND STATEMENT BY THE EXECUTIVE DIRECTOR FOR NIGER). The agreement reportedly specified that all subsidiary loans would be repaid with the proceeds from a joint venture to produce oil in eastern Niger with China National Petroleum Company (See: Beijing’s ‘Going Out’ Strategy and Belt and Road Initiative in the Sahel: The Case of China’s Growing Presence in Niger). China Eximbank also specified that any loans under this facility would need to be tied to a Chinese contractor and earmarked for projects with high economic rates of return. Any projects funded through the facility also required prior approval by China Eximbank.The National Assembly of Niger officially ratified the master facility agreement on 28 May, 2014; however, this agreement was cancelled in 2018 before any money was disbursed (See: Assemblée nationale : Adoption de quatre (4) projets de texte dont celui portant abrogation de la loi autorisant la ratification de la Convention Cadre de crédit avec EXIM-BANK ). Some of the projects that were considered for funding through the master facility agreement included the Kao Cement Plant Construction Project (see Project ID#58414) and 5,000 Housing Unit Construction Project (which would have been implemented by China Gezhouba Group Company Limited, or CGGC). It was also reported that the financing will be used for the refinancing of loan to SORAZ company (see ProjectID#58433).

Number of official sources

3

Number of unofficial sources

6

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Details

Cofinanced

No

Receiving agencies [Type]

Government of Niger [Government Agency]

Implementing agencies [Type]

Government of Niger [Government Agency]

Loan type

Concessional

Maturity

25 years

Interest rate

2.0%

Grace period

5 years

Grant element

57.30395585%

Gurarantee provided

No

Insurance provided

No

Collateralized/securitized

Yes

Collateral

Oil secured line of credit.