Project ID: 40735

China Eximbank provides $119.9 million concessional loan for Beira Fishing Port Rehabilitation Project

Commitment amount

$ 132824857.4834648

Adjusted commitment amount

$ 132824857.48

Constant 2021 USD

Summary

Funding agency [Type]

Export-Import Bank of China (China Eximbank) [State-owned Policy Bank]

Recipient

Mozambique

Sector

Agriculture, forestry, fishing (Code: 310)

Flow type

Loan

Level of public liability

Central government debt

Financial distress

Yes

Infrastructure

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

2014-09-10

Actual start

2016-06-27

Actual complete

2019-10-28

Geography

Description

On September 10, 2014, China Eximbank and the Government of Mozambique signed a $119,976,000 loan agreement for the Beira Fishing Port Rehabilitation Project. Then, on November 15, 2014, the Government of Mozambique ratified this loan agreement. The loan carries the following borrowing terms: a 2% interest rate, a 7 year grace period, and a 20 year maturity. This project involved the construction of a dock that is 377 meters long (compared with 188 meters previously) in order to allow 16 industrial vessels to be moored simultaneously. It also involved the installation of six cold stores, an ice factory with a capacity of 60 tonnes per day, a fish processing room with a capacity of 50 tonnes per day, and a handling capacity of 700,000 tons per year. Beira’s fishing port was destroyed by cyclone Eline, which struck the provincial capital of Sofala in February 2000. China Harbor Engineering Company (CHEC) was the contractor responsible for implementation. A groundbreaking ceremony took place on June 27, 2016 and the project was officially completed and handed over to the authorities in Mozambique on October 28, 2019. There are some indications that the China Eximbank loan for the Beira Fishing Port Rehabilitation Project may have financially underperformed vis-a-vis the original expectations of the lender. In 2016, several credit rating agencies downgraded the Government of Mozambique to 'selective default' or 'restricted default' status, and the World Bank and the IMF re-classified Mozambique's external debt as 'in distress.' In January 2017, the Government of Mozambique defaulted on a coupon payment for its dollar-denominated Eurobond. Then, in February 2018, the International Monetary Fund (IMF) announced that the Government of Mozambique had accumulated $710 million in arrears to external creditors and had agreed to reschedule some bilateral debt service payments with the Chinese Government. Two months later, in April 2018, Stelia Neta, a National Director at the Ministry of Finance of Mozambique revealed that the Government of Mozambique’s outstanding debt obligations to the Chinese Government amounted to $2.02 billion and the Chinese Government had agreed to extend the grace periods (and first principal repayments) on these outstanding debt obligations without changing their final maturity dates or interest rates (as captured via Project ID#66283).

Additional details

1. The Portuguese project title is Reabilitação do porto de pesca da Beira or Projecto de Reabilitação do Porto de Pescas da Beira. The Chinese project title is 贝拉港渔码头修复项目.

Number of official sources

5

Number of total sources

17

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Details

Cofinanced

No

Direct receiving agencies [Type]

Government of Mozambique [Government Agency]

Implementing agencies [Type]

China Harbour Engineering Co., Ltd. [State-owned Company]

Loan Details

Maturity

20 years

Interest rate

2.0%

Grace period

7 years

Grant element (OECD Grant-Equiv)

51.7588%

Bilateral loan

Investment project loan