ICBC and other Chinese banks pledge $657.5 million loan for Conakry Port Extension Project

Project narrative

On October 25, 2018, ICBC (Industrial and Commercial Bank of China) and 4 other Chinese banks agreed in principle to provide a $657.5 million loan to the Republic of Guinea for the Conakry Port Extension Project. This loan will reportedly be issued as a subsidiary loan agreement under the $20 billion Resource and Loan Cooperation Framework Agreement that the Chinese Government and the Republic of Guinea signed on September 5, 2017 (see Record ID#65113 and Record ID#64352). As such, it will carry the following terms: 15-year maturity, 4 year grace period, and an interest rate of 6-month Euribor plus a 2.5% margin. The proceeds of the loan will be used to fund 85% of the cost of a $774 million (nearly €650 million) EPC contract with China Harbour Engineering Co (CHEC). The purpose of the Conakry Port Extension Project is to construct two multifunctional docks and a mineral dock, with dockyards adjacent to the 41.6-hectare wharf. The construction of a 4 km long road and an 11-hectare parking area capable of accommodating 600 trucks is also planned, as is the backfilling of a 35.7-hectare quayside platform. A social and environmental impact assessment has been completed for this project, and the commercial contract with CHEC was signed in October 2016. However, it does not appear that a loan agreement has been finalized.