China Eximbank provides $87.6 million government concessional loan for Phase 1 of 134 km Adi-Guadad-Habela-Cheatat-Aqurdat Road Project
Commitment amount
$ 95470837.91417208
Adjusted commitment amount
$ 95470837.91
Constant 2021 USD
Summary
Funding agency [Type]
Export-Import Bank of China (China Eximbank) [State-owned Policy Bank]
Recipient
Eritrea
Sector
Transport and storage (Code: 210)
Flow type
Loan
Level of public liability
Central government debt
Infrastructure
Yes
Category
Project lifecycle
Geography
Description
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’.
Additional details
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.
Number of official sources
12
Number of total sources
25
Details
Cofinanced
No
Direct receiving agencies [Type]
Government of Eritrea [Government Agency]
Implementing agencies [Type]
Government of Eritrea [Government Agency]
China Shanghai (Group) Corporation for Foreign Economic and Technological Cooperation [State-owned Company]