China Development Bank provides a $170 million loan to JISCO for the acquisition of the Alpart Alumina Plant (Linked to Project ID#57213, #71281, and #71640)
Commitment amount
$ 200736766.42093942
Adjusted commitment amount
$ 200736766.42
Constant 2021 USD
Summary
Funding agency [Type]
China Development Bank (CDB) [State-owned Policy Bank]
Recipient
Jamaica
Sector
Industry, mining, construction (Code: 320)
Flow type
Loan
Level of public liability
Unallocable
Infrastructure
No
Category
Project lifecycle
Geography
Description
On September 22, 2016, China Development Bank (CDB), Jiuquan Iron and Steel Co. Ltd. (JISCO), and the Jamaican Government signed the Tripartite Cooperation Framework Agreement for Alpart Aluminum Project. JISCO bought Alumina Partners of Jamaica (Alpart) alumina plant from Rusal for $299 million using a $170 million loan provided by CDB. The maturity, grace period, and interest rate of the loan are unknown. The CDB served as liaison between JISCO and the Government of Jamaica, conducted research, and coordinated on-site investigations before the acquisition. On June 21, 2017, production resumed at the Alpart alumina plant. The Alpart alumina plant produced its first batch of alumina products on October 6, 2017. The plant has a nameplate capacity of 1.65 million metric tons per annum, but JISCO’s modernization program is expected to boost that capacity to 2 million metric tons per annum of refined alumina. JISCO suspended alumina production at Alpart plant in September 2019 for the modernization program.
Additional details
1. This CDB loan is not captured in the China-Latin America Finance Database, which is co-produced by the Inter-American Dialogue and Boston University’s Global Development Policy Center. 2. Project ID#57211 captures the $170 million loan from CDB for the Alpart acquisition, and is linked to the $129 million that JISCO spent on the Alpart acquisition (captured via Project ID#71640). This project is also linked to (a) Project ID#57213, which captures a $150 million loan from CDB for aluminum production committed at the same time as this loan; and (b) Project ID#71281, which captures JISCO's 2019 modernization program to expand the Aplart plant's capacity.
Number of official sources
10
Number of total sources
16
Details
Cofinanced
No
Direct receiving agencies [Type]
Jiuquan Iron & Steel (Group) Co. Ltd (JISCO) [State-owned Company]
Implementing agencies [Type]
Rusal [Private Sector]
Government of Jamaica [Government Agency]