Chinese Government provides RMB 120 million interest-free loan for 10MW Boali III Hydroelectric Dam and Electric Transmission Network Project (Linked to Project ID#56184 and #73346)

In 2008, China Eximbank considered the possibility of funding the 10MW Boali III Hydroelectric Dam and Electric Transmission Network Project. However, it ultimately decided not to fund the project. However, on April 19, 2010, the Chinese Government signed an RMB 120 million interest-free loan agreement and an RMB 20 million grant agreement with the Government of the Central African Republic to support the 10MW Boali III Hydroelectric Dam and Electric Transmission Network Project. Then, on November 28, 2015, the Chinese Government and the Government of the Central African Republic signed an Economic and Technical Cooperation Agreement (ETCA), which committed 9 billion CFA francs of grant funding for the 10MW Boali III Hydroelectric Dam and Electric Transmission Network Project and the Sapéké Bridge Reconstruction Project (see Project ID #52944 and #56184). Finally, in early September 2018, the Chinese Government issued another RMB 200 million grant — through an ETCA — to the Government of the Central African Republic, and an (unknown) portion of these funds was set aside for the 10MW Boali III Hydroelectric Dam and Electric Transmission Network Project. The total amount of funding allocated by China’s Ministry of Commerce for the Boali III Hydroelectric Dam and Electric Transmission Network Project was RMB 184 million. Project ID#420 captures the RMB 120 million interest-free loan that supported this project, while Project ID#73346 captures the RMB 64 million of grant funding (from multiple ETCAs) that supported this project. The 10MW Boali III Hydroelectric Dam and Electric Transmission Network Project involves the installation of 2 sets 5MW generating units, the construction of the C substation, the construction three transmission and transformation lines (from No.3 power station to No.2 power station, from C power station to A power station and from C power station to B power station). Sheng Ji Oilfield Sheng Ji Engineering Construction (Group) Co., Ltd. (中国石化胜利油田胜建集团) is the contractor responsible for implementation. On April 7, 2010, a project design contract with signed. Then, on July 22, 2011, a project implementation contract was signed. Construction itself began on November 28, 2011. However, the project was later halted due to violence and political instability. Then, on June 19, 2015, China’s Ambassador to CAR announced the resumption of project implementation. However, it was not until May/June 2018 that project implementation recommenced in earnest. This project is the reportedly the ‘largest Chinese aid project in the Central African Republic.’

Additional details

1. This project is also known as the Boali No. 3 hydropower station project. Chinese project title is 援中非博阿利3号水电站项目 or 中非博阿利3号水电站及配套输变电工程项目. The French project title is Le projet du barrage hydro électrique de Boali III et l’alimentation du réseau de transmission électrique de Boali or Le projet du station hydroélectrique de Boali 3. 2. Since the borrowing terms for the interest-free loan are unavailable, AidData has set maturity period to 20 years by default and grace period to 10 years by default per China's Foreign Assistance White Paper (http://www.cidca.gov.cn/2018-08/06/c_129925064_3.htm) which states that the maturity period of interest-free loans is 20 years, with a drawdown period of 5 years, grace period of 5 years, and repayment over 10 years. AidData treats the drawdown period as providing 5 years of additional grace.

Number of official sources

25

Number of total sources

37