CMEC provides $238 million supplier credit for 120MW Imboulou Hydropower Plant Project (Linked to Record ID#1049)

Project narrative

On March 25, 2003, China Machinery Engineering Corporation (CMEC) and the Republic of Congo signed a $238 million supplier's credit agreement for the 120MW Imboulou Hydropower Plant Project. This oil-backed loan reportedly carried the following terms: 20-year maturity, 5-year grace period, and a 0.2% interest rate. In order to finance its supplier credit agreement with the Republic of Congo, CMEC obtained an export seller’s credit from China Eximbank. As of 2014, USD 238 had been disbursed. The export seller’s credit from China Eximbank reportedly covered 85% of the $280 million commercial contract. This project involved the construction of a 120 MW (4x30 MW) Imboulou hydroelectric power plant, which is located on the Léfini River near Ngabé in Ngabe District. CMEC was the contractor responsible for implementation. A formal groundbreaking ceremony took place on September 23, 2003. Construction began in November 2004 and the project reportedly employed 400 Chinese workers, 2,000 Congolese workers, and 20 German workers (from a company called Ingénieur Conseil Fichtner). On January 26, 2009, the project successfully achieved dam closure. Then, on January 27, 2010, the first power generating unit was put into operation. This project was provisionally accepted by the Republic of Congo on November 10, 2010. It was officially inaugurated on May 7, 2011. However, according to the Republic of Congo, it was not completed until May 22, 2012.