Project ID: 38934

Bank of China and Deutsche Bank (China) provide $298.9 million syndicated loan for the Cañar and Naranjal Flood Control Project

Commitment amount

$ 290410874.0

Constant 2017 USD

Summary

Funding agency [Type]

Bank of China (BOC) [State-owned Commercial Bank]

Recipient

Ecuador

Sector

Energy (Code: 230)

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

Completion (The next section lists the possible statuses.)

Pledge

Commitment

Implementation

Completion

Suspended

Cancelled

Milestones

Commitment year

2013

Implementation

2015

2015-04-21

Actual start

Completion

2016

2016-01-12

Actual

Description

On 24 July 2013 the Republic of Ecuador signed a $298,880,591.93 syndicated loan agreement [identification number: 0033039-0000070 BJ: 1749986.10] with Bank of China Limited and Deutsche Bank (China) Co., Ltd. for the Cañar and Naranjal Flood Control Project. This oil-backed loan carried the following terms: a variable interest rate of 6 month LIBOR + a 3.50% margin, a 4 year grace period, a 14 year year maturity, a 0.75% commitment fee, and a 1% management fee (See: “Facility Agreement”). The purpose of the Cañar and Naranjal Flood Control Project was to set fluvial defenses along the Cañar river, and thereby protect some 37,000 hectares and 176 km along the river and its effluents, as well as Patul, Piedras, Norcay rivers and the Trobador streams. With a total of 10 gates, the project sought to regulate up to 1,500 m3/s of water coming from the overflows of the river, to a 23 km long bypass which will have a deposit in La Lagartera lakes, which was designed to store 14 million cubic meters of water for irrigation. The project was carried out by China International Water & Electric Corporation (CWE). It was originally scheduled for completion in August 2015. However, the $393.8 million contract with CWE did not become effective until 2015. Construction began on 21 April 2015. Project activities included the construction of a diversion dam; the construction of a 23 km long canal; the construction of 2 bridges; and the rehabilitation of 4 bridges. The project fed river water to eight giant Chinese turbines designed to produce enough electricity to power more than a third of Ecuador. The project was completed and handed over to the authorities on 12 January 2016.

Additional details

The Chinese project title is ‘厄瓜多尔可尼尔防洪工程项目是公司在厄’ or '可尼尔防洪项目' . The Spanish project title is Construcción del Sistema de Control de Inundaciones Naranjal and Construcción del Sistema de Control de Inundaciones Cañar. We identify the interest rate based on the 6 month LIBOR rate at the time of the signing of the loan agreement: 0.409% in July 2013. The total interest rate is therefore identified as 0.409% + 3.50% = 3.909%. Bank of China's contribution to the $298.9 million syndicated loan with Deutsche Bank is unspecified, so we have not identified the face value of the loan in the amount field.

Number of official sources

12

Number of unofficial sources

9

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Details

Cofinanced

Yes

Cofinancing agencies [Type]

Deutsche Bank (China) Co., Ltd. [Private Sector]

Receiving agencies [Type]

Government of the Republic of Ecuador [Government Agency]

Implementing agencies [Type]

China International Water and Electrical Corporation (CWE) [State-owned Company]; Government of the Republic of Ecuador [Government Agency]; National Water Secretariat of Ecuador (Senagua) [Government Agency]

Loan type

Concessional

Maturity

14 years

Interest rate

3.909%

Grace period

4 years

Management fee

1.0

Commitment fee

0.75

Grant element

33.45689421%

Gurarantee provided

No

Insurance provided

No