Bank of China and China Development Bank provide $59.3 million loan for Phase 1 of 225kV Ebolowa-Kribi and 90kV Mbalmayo-Mekin Transmission Line Construction Project

On June 27, 2019, the Hunan Branch of China Development Bank and the Hunan Branch of Bank of China signed a $59,312,348 (CFA 33.3 billion) loan agreement with the Government of Cameroon for Phase 1 of the 225kV Ebolowa-Kribi and 90kV Mbalmayo-Mekin Transmission Line Construction Project. According to the Government of Cameroon's Caisse Autonome d'Amortissements (CAA), the loan carries the following borrowing terms: a 3 year grace period, a 15 year maturity, and a 6.3% interest rate. The loan appears to be backed by a Sinosure credit insurance policy. The proceeds of the loan were to be used by the borrower to finance a commercial contract between the Government of Cameroon and TBEA Hengyang Transformer Co., Ltd., which was signed in 2015. As of December 31, 2020, the loan had achieved a 0% disbursement rate (with an undisbursed balance of CFA 31.8 billion). The purpose of the project is to evacuate electricity generated from the China Eximbank-financed Memve’ele hydroelectric power plant (see Project ID#289 and #57586), secure electricity for the China Eximbank-financed Kribi deepwater port and industrial complex (see Project ID#53396, #53116, and #350), and connect the China Eximbank-financed Mekin hydroelectric dam (see Project ID#974) to the Southern Interconnected Grid (SIG). The project has two phases: the first phase involves the construction of the Kribi substation and the expansion of the Ebolowa, Mbalmayo and Njom-Yekombo substations. TBEA Hengyang Transformer Co., Ltd. is the EPC contractor responsible for implementation. As of October 2021, all technical studies for the project were completed. However, as of February 2022, AidData had not identified any evidence of project implementation.

Additional details

1. This project is also known as the Kribi, Ebolowa, Mbalmayo, and Njom-Yekombo Substations Project, the Ebolova-Kribi Power Transmission and Transformation Project, and the Project for the construction of the 225 kV electricity transmission line between Ebolowa and Kribi, the 90kV line between Njom-Yekombo and Mbalmayo and the 225/30kV substation in Kribi. The Chinese project title is 喀麦隆埃博洛瓦-克里比输变电项目. The French project title is le projet de "construction des lignes de transport Ebolowa-Kribi (225 KV) et Mbalmayo-Mekin (90 KV) et leurs ouvrages connexes or LIGNE DE TRANSPORT ELECTRIQUE 225 KV EBOLOWA-KRIBI ET 90KV MBALMAYO- MEKIN 2. An IMF Article IV Report indicates that the Government of Cameroon plans to also borrow funds (45.3 billion CFAF) for the second phase of the project, but AidData has not identified any evidence that a loan was ever finalized for the project’s second phase. 3. The Government of Cameroon’s identification number for this loan is L 262547. The loan identification number in the Government of Cameroon’s Commonwealth Secretariat Debt Recording and Management System (CS-DRMS or CSDRMS) is 2019103. 4. Some sources suggest that the commercial contract with TBEA Hengyang Transformer Co., Ltd. may have been signed (or amended) in February 2017. This issue warrants further investigation. 5. It appears that the project’s second phase will involve construction of a 225 KV transmission line between Ebolowa and Kribi and the construction of a 90 KV transmission line between Mbalmayo and Mekin (Njom-Yekombo). However, this issue requires further investigation. 6. Some sources indicate that the Government of Cameroon initially sought funding from ICBC, but it does not appear that these negotiations were successful. 7. In the database of Chinese loan commitments that SAIS-CARI released in July 2020, a $56 million Bank of China loan is identified for this project. However, multiple official sources identify the face value of the loan as $59,312,348 and the financiers of the loan as China Development Bank and Bank of China. SAIS-CARI does not identify the borrowing terms of the loan. AidData relies on the borrowing terms that are recorded in a March 2021 publication of the Government of Cameroon’s Caisse Autonome d'Amortissements (CAA).

Number of official sources

11

Number of total sources

15