China Eximbank provides RMB 462 million government concessional loan for 132kV SORAZ-Zinder and Maradi-Malbaza Transmission Line Project

Project narrative

On November 13, 2013, China Eximbank and the Government of Niger signed an RMB 462,515,209 government concessional loan (GCL) agreement for the 132kV SORAZ-Zinder and Maradi-Malbaza Transmission Line Project. The loan carries the following borrowing terms: a 20 year maturity, a 5 year grace period, a 1% interest rate, and a 0.25% commitment fee. The Government of Niger was expected to use the revenues that it generated from selling electricity to Nouvelle Cimenterie du Niger to repay the loan. The proceeds of the loan were to be used by the borrower to finance a commercial contract between Société Nigérienne d’Electricité (NIGELEC) — a state-owned power utility in Niger — and China Railway International. The purpose of the project was to construct two 132kV power transmission lines: a 57 km line from the SORAZ Zinder oil refinery to Zinder City, and a 202 km from Maradi to Malbaza. These two power transmission lines were meant to connect to NIGELEC's network, provide electricity to the cities of Zinder, Maradi and Tahoua, and transfer surplus power from the SORAZ refinery to Nouvelle Cimenterie du Niger (a company that operates a cement plant in Malbaza). The project supported the construction of four electricity substations (two in Malbaza, one in Zinder City, and one at the SORAZ Zinder oil refinery). A groundbreaking ceremony was held on July 4, 2015. Construction was originally expected to reach completion in 2017. The project ultimately reached completion. However its precise completion date is unknown.