Project ID: 33458

ICBC provides $69.7 million buyer’s credit for 35 MW Broadlands Hydropower Project

Commitment amount

$ 78624147.6876315

Adjusted commitment amount

$ 78624147.69

Constant 2021 USD

Summary

Funding agency [Type]

Industrial and Commercial Bank of China (ICBC) [State-owned Commercial Bank]

Recipient

Sri Lanka

Sector

Energy (Code: 230)

Flow type

Loan

Level of public liability

Central government-guaranteed debt

Infrastructure

Yes

Category

Intent

Mixed (The next section lists the possible statuses.)

Commercial

Development

Representational

Mixed

Financial Flow Classification

OOF-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

Implementation (The next section lists the possible statuses.)

Pledge

Commitment

Implementation

Completion

Suspended

Cancelled

Milestones

Commitment

2013-03-12

Planned start

2013-01-15

Actual start

2013-07-17

NOTE: Red circles denote delays between planned and actual dates

Geography

Description

On March 12, 2013, ICBC and the Ceylon Electricity Board signed a $69.7 buyer’s credit (loan) agreement for the 35 MW Broadlands Hydropower Project. This loan carries the following borrowing terms: a grace period of 3 years, a maturity of 15 years, and an interest rate of 6-month LIBOR plus a 6.3% margin. The loan’s final maturity date is March 12, 2028. The Government of Sri Lanka issued a sovereign guarantee in support of the loan. Sinosure provided buyer’s credit insurance. The total cost of the 35 MW Broadlands Hydropower Project was $82 million. The proceeds of the $69.7 million ICBC loan were to be used by the borrower to finance 85% of the cost of a commercial contract with China National Electricity Equipment Corporation, which was signed on October 20, 2010. Hatton National Bank of Sri Lanka financed the remaining 15% of the project cost. The ICBC loan’s outstanding amount was $6.05 million as of December 31, 2015, $24.98 million as of December 31, 2018, $23.13 million as of December 31, 2019, and $30.95 million as of December 31, 2020. The project involved the construction of 35 MW run-of-the-river hydroelectric complex over the Kelani River in Kitulgala. Its exact locational coordinates are 06°58′44″N 80°27′16″E. More specifically, the project involved the construction of a 24 meter high & 144 meter long main dam, a 19 meter high & 48 meter long diversion dam, a 2.7 meter diameter & 850 meter long diversion tunnel, a 5.4 meter diameter & 3 km long main tunnel, a 35MW surface power station (2 units of 17.5MW), a switch yard, and a 4 km long transmission line. The complex has an installed capacity of 35 MW and is expected to generate 126 GWh of electrical energy annually. The contractor responsible for implementation was China National Electric Equipment Corporation. Its work was supervised by Ceylon Electricity Board, the largest electricity company in Sri Lanka. Construction was originally expected to commence on January 15, 2013; however, it ultimately began on July 17, 2013. River closure took place on November 20, 2016. On June 6, 2019, a breakthrough ceremony of the main headrace tunnel took place. As of August 2020, the project had achieved a 74.79% completion rate. Then, in November 2021, an inaugural ceremony was held for the release of water to the main tunnel of the Broadlands Hydropower Project.

Additional details

1. The Chinese project title is 斯里兰卡布罗德兰水电站主. 2. AidData has calculated the all-in interest rate to be 6.748% by adding the 6-month rate LIBOR (0.448%) in March 2013 to 6.3%. 3. Some sources identify the loan commitment date as January 16, 2013. 4. Ceylon Electricity Board is a government-owned and controlled utility of Sri Lanka that takes care of the general energy facilities of the island.

Number of official sources

34

Number of total sources

54

Download the dataset

Details

Cofinanced

Yes

Cofinancing agencies [Type]

Hatton National Bank [Private Sector]

Direct receiving agencies [Type]

Ceylon Electricity Board [State-owned Company]

Implementing agencies [Type]

China National Electric Engineering Co., Ltd. (CNEEC) [State-owned Company]

Ceylon Electricity Board [State-owned Company]

Guarantee provider [Type]

Government of Sri Lanka [Government Agency]

Insurance provider [Type]

China Export & Credit Insurance Corporation (Sinosure) [State-owned Company]

Loan Details

Maturity

15 years

Interest rate

6.748%

Grace period

3 years

Grant element (OECD Grant-Equiv)

0.8538%

Bilateral loan

Export buyer's credit

Investment project loan