China Eximbank provides RMB 630 million government concessional loan for Agriculture Development Project

Project narrative

On January 18, 2012, Li Liansheng, the Ambassador of the People's Republic of China in Eritrea, and Berhani Ablekh, Eritrea’s Minister of Finance, signed a preferential loan framework agreement for the Agriculture Development Project. Then, on February 29, 2012, China Eximbank and the Government of Eritrea signed an RMB 630 million government concessional loan (GCL) for the Agriculture Development Project. The borrowing terms of the loan are unknown. However, it is known that the borrower was expected to use the proceeds of the loan to finance an EPC contract with Shanghai Corporation for Foreign Economic & Technical Cooperation (SFECO). The Agriculture Development Project involved the construction of three cold-storage facilities in three different cities, an aluminum-can manufacturing plant, and a PVC drip-irrigation pipe production line. SFECO was the EPC contractor responsible for implementation. Construction began in July 2013. Then, in November 2013, the Chairman and President of SFECO and a larger delegation traveled went to Eritrea to inspect the project. They listened to the project leader’s progress report, and inspected the construction site of the 5,000-ton cold storage plant in Asmara. On April 10, 2016, Eritrean Government officials conducted on-site project inspections in Massawa. Then, on March 18, 2017, the inspection team of China Development Bank inspected the PE/PVC can-making factories of this agriculture development project in Massawa, Eritrea. This project was reportedly completed but its precise implementation end date is unknown.