China Eximbank provides supplemental RMB 102 million government concessional loan for 90kV Dakar Electricity Distribution Network Rehabilitation and Extension Project (Linked to Project ID#53283 and Project ID#138).

On November 23, 2012, China Eximbank and Societe Nationale d'Electricite du Senegal (SENELEC) — Senegal’s state-owned electricity company — signed an RMB 102 million government concessional loan (GCL) agreement to provide supplementary funding for the 90kV Dakar Electricity Distribution Network Rehabilitation and Extension Project. This GCL reportedly carries the following terms: 20 year maturity, 7 year grace period, and an interest rate of 1.5%. The purpose of this project was to stabilize supply of electricity for 300,000 households and connect 150,000 additional households to the electricity network. It involved the construction of 474 transformer stations, the laying of 354 km of underground cable, the construction of a low-voltage (30kv) network with the support of geographic information systems, and the installation of 100,000 electricity consumption meters and 17,000 boxes and management systems (100,000 Compteurs prépaiement et 17,000 Coffrets et du Système de gestion) in the suburbs of Dakar. Prior to the implementation of this project, Senegalese consumers paid their electricity bills every two months based on past electricity usage. However, the system was widely abused and theft was rampant. This project sought to introduce state-of-the-art software to combat electricity theft, which was reportedly resulting in $50 million of lost revenue each year. China National Machinery and Equipment Import and Export Corporation (CMEC) was the contractor responsible for implementation. Construction began in 2012 and the project was completed and accepted by the Government of Senegal on April 29, 2016. The first phase of this project was funded by China Eximbank and it is captured in Project ID#138. A loan was also provided for the second stage of this project in #53283. China Eximbank also provided a third loan for this project's second stage, which is captured in Project ID#53177. The grace period of the loan in #53283 was extended in ID#73130.

Additional details

This project is also known as the Supplementary Phase of the 90kV Dakar Electricity Distribution Network Rehabilitation and Extension Project. The French project title is Financement Complementaire du Projet de Realization de La Boucle de Dakar. A 2014 bond prospectus issued by the Government of Senegal refers to the value of this loan as FCFA 8 billion, which is roughly equivalent to RMB 102 million. AidData records the face value of the loan as RMB 102 because this loan was supported by an Eximbank GCL, and Eximbank GCLs are always denominated in RMB. Also, while AidData records the terms of this GCL (20 year maturity, 5 year grace period, 1.5% interest rate), SAIS-CARI does not record the terms of this loan in the database of Chinese loan commitments that it released in July 2020.

Number of official sources

4

Number of total sources

10