Overview

China National Machinery Industry Corporation Limited (Sinomach) provides $463 million supplier's credit for Port Sudan Water Project (Linked to Record ID#73345)

Commitments (Constant USD, 2023)$928,005,030

Commitment Year•2005Country of Activity•SudanDirect Recipient Country of Incorporation•SudanSector•Water Supply And SanitationFlow Type•Loan

Status

Project lifecycle

Implementation

Pipeline: PledgePipeline: CommitmentImplementationCompletion

Timeline

Key dates

Commitment date: Jun 20, 2005

Start (actual): Feb 21, 2011

First repayment (originally scheduled): Jun 19, 2009

Last repayment (originally scheduled): Jun 17, 2019

Geospatial footprint

Map overview

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The Port Sudan Water Project involved the construction of a water supply system over a 470 km area from the Atbara area of the Nile River to Port Sudan. More specifically, it involved extracting water from the Nile River, and after purification treatment, supplying it to the Port Sudan area through a 471.1 km water pipeline. More detailed locational information can be found at https://www.openstreetmap.org/relation/3922829

Stakeholders

Organizations involved in projects and activities supported by financial and in-kind transfers from Chinese government and state-owned entities

Ultimate beneficial owners

At least 25% host country ownership

Funding agencies

State-owned companies

China National Machinery Industry Corporation (Sinomach)

Receiving agencies

Government Agencies

Government of Sudan

Implementing agencies

State-owned companies

China Machinery Engineering Corporation (CMEC)
China Ocean Aviation Group Incorporation

Loan desecription

China National Machinery Industry Corporation Limited (Sinomach) provides $463 million supplier's credit for Port Sudan Water Project

Grace period•4 yearsGrant element•32.9367%Interest rate (t₀)•4%Interest type•Fixed Interest RateMaturity•14 years

Narrative

Full Description

Project narrative

On June 20, 2005, China National Machinery Industry Corporation Limited (Sinomach) signed a $463 million supplier's credit agreement with the Government of Sudan for the Port Sudan Water Project (as captured via Record ID#47180). The loan carried the following borrowing terms: a 14-year maturity, a 4-year grace period, and a 4% interest rate. The agreement was renegotiated and increased to a $509 million supplier's credit on September 15, 2009 (as captured via Record ID#73345); however, the borrowing terms of the September 15, 2009 loan are unknown. The Port Sudan Water Project involved the construction of a water supply system over a 470 km area from the Atbara area of the Nile River to Port Sudan. More specifically, it involved extracting water from the Nile River, and after purification treatment, supplying it to the Port Sudan (بورتسودان) area through a 471.1 km water pipeline. The pipeline is designed to deliver a daily water supply of 100,000 cubic meters. China Machinery Engineering Corporation (CMEC) and China Ocean Aviation Group Limited (COAGI) were the contractors responsible for implementation. This project officially commenced on February 21, 2011. However, it is unclear if the project was ever completed.

Staff comments

1. This project is also known as the Port Sudan Water Supply Engineering Project. The Chinese project title is 苏丹港供水工程项目. 2. It is unclear whether the original $463 million loan was ever drawn down between 2005 and 2009 before the agreement was renegotiated. This issue warrants further investigation.