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Overview

China Eximbank provides $87.6 million government concessional loan for Phase 1 of 134 km Adi-Guadad-Habela-Cheatat-Aqurdat Road Project

Commitments (Constant USD, 2023)$88,151,555
Commitment Year•2018Country of Activity•EritreaDirect Recipient Country of Incorporation•EritreaSector•Transport And StorageFlow Type•Loan

Status

Project lifecycle

Implementation

Pipeline: PledgePipeline: CommitmentImplementationCompletion

Timeline

Key dates

Commitment date
Jan 18, 2018
Start (planned)
Jan 18, 2018
Start (actual)
Nov 11, 2019
End (planned)
Nov 1, 2021

Geospatial footprint

Map overview

Visualizes the AidData-provided feature geometry for this project.

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The project builds the first phase of the Adi-Guaedad-Akordet Road Project, which builds a 29 km road that connects the villages of Adi-Guaedad and Habila (or Habela). Habela's locational information can be found at https://mapcarta.com/13016384. More detailed locational information about the entire project can be found at https://www.openstreetmap.org/directions?engine=fossgis_osrm_car&route=15.3007%2C38.5631%3B15.2068%2C38.8715#map=12/15.2497/38.7019

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 Policy Banks

  • Export-Import Bank of China (China Eximbank)

Receiving agencies

Government Agencies

  • Government of Eritrea

Implementing agencies

Government Agencies

  • Government of Eritrea

State-owned companies

  • China Shanghai (Group) Corporation for Foreign Economic and Technological Cooperation (China SFECO Group)

Loan description

China Eximbank provides $87.6 million government concessional loan for Phase 1 of 134 km Adi-Guadad-Habela-Cheatat-Aqurdat Road Project

Interest type•Unknown

Narrative

Full Description

Project narrative

On January 18, 2018, China Eximbank and the Government of Eritrea signed $87.6 million government concessional loan (GCL) agreement for Phase 1 of the 134 km Adi-Guadad-Habela-Cheatat-Aqurdat Road Project. The borrowing terms of the GCL are unknown. However, it is known that the borrower is expected to use the proceeds of the GCL to finance a commercial contract between the Government of Eritrea and Shanghai Corporation for Foreign Economic & Technical Cooperation (SFECO). The purpose of the first phase of the project is to asphalt a 29 km, two-lane road section between Adi-Guadad with Habela. This road section is part of a larger, 134 km road than runs from Adi-Guadad to Aqurdat (Akordat) via Habela and Cheatat. Shanghai Corporation for Foreign Economic & Technical Cooperation (SFECO) is the contractor responsible for implementation. A formal groundbreaking ceremony for this project took place on November 11, 2019. At the ceremony, Eritrea’s Minister of Public Works, Mr. Abraha Asfeha, indicated that the old road connecting Asmara and Gash Barka region (via Keren) was very narrow and its rolling mountainous topography limits driving speeds and is dangerous. He said that the new road would be build to a high standard and it would shorten the existing Asmara-Akordet road by 20 km and it would be of strategic economic importance. The first batch of equipment and supplies for this project arrived on site on October 20, 2019. Then, on February 25, 2020, the Government of Eritrea’s Ministry of Information reported that the project was ‘on schedule’.

Staff comments

1. This project is also known as the First Phase of the Adi-Guadad-Akordet Road Infrastructure Project, the First Phase of the Adi-Guadad-Akordet Road Project, and Phase I of the 133 km Adi-Guaedad to Akordat Road Asphalting Project. The Chinese project title is 阿斯马拉-阿科达特公路一期项目 or 阿科达特公路一期项目. 2. This government concessional loan was denominated in RMB, but only its USD equivalent value could be retrieved by AidData. This issue warrants further investigation.