China Eximbank provides preferential buyer's credit for Phase 1 of the Rural Well Drilling Project (Linked to Record ID#110666)

Project narrative

In 2017, China Eximbank and the Government of Senegal signed a preferential buyer's credit (PBC) agreement worth approximately $85,000,000 (CFA 50 billion) for Phase 1 of the Rural Well Drilling Project. The borrowing terms of the loan are unknown. However, it is known that the borrower was expected to use the loan proceeds to finance 85% of the cost of commercial (EPC) contract worth approximately $100 million with CGCOC Group Co., Ltd, which was signed on February 12, 2016. The purpose of the project was to build and rehabilitate 251 wells (including the rehabilitation of 70 existing boreholes and the construction of 181 new boreholes and water towers), 900 standpipes, and 1,800 km of pipelines in 13 regions within the country's most disadvantaged rural areas. The project consisted of two parts – the construction of newly built well and water supply systems and the renovation of old wells. The newly built project component involved 181 sets of water supply systems that have a maximal daily capacity of 80,000m3 per day, enough to meet the water needs of roughly 1.66 million people. The renovation component of the project involved 70 wells that have a capacity of 30,000m3 per day, enough to meet the water needs of 621,000 people. Upon completion, it was expected that this project would meet the water needs of more than 2.2 million people and 'solve the problem of water... for one-seventh of Senegal's population.' CGCOC Group Co., Ltd was the general EPC contractor responsible for implementation. An official project inauguration ceremony took place on June 4, 2016. Then, on March 5, 2017, a formal groundbreaking ceremony took place. However, project implementation did not commence until April 17, 2017. The project was completed on October 10, 2019. The originally anticipated duration of the project was 14 months (June 17, 2018). Ultimately, a total of 251 wells are drilled and 1,200 km of water pipelines were laid, providing the much-needed drinking water to the rural residents in Senegal. 181 sets of water supply systems were installed and 70 wells were rebuilt, which collectively able to meet the water demand of 2.28 million people. Drinking water facilities were installed in 12 of the 14 major districts nationwide, benefiting rural residents by providing safe drinking water, reducing the occurrence and spread of diseases, and improving their living quality and health. The project also reportedly created more than 3,000 jobs in 12 major districts of Senegal, including jobs related to well maintenance, security and fee collection, and cultivated a batch of local engineering and technical personnel.