China Eximbank provides $285.9 million preferential buyer’s credit for 112MW Gribo Popoli Hydropower Plant Construction Project

Project narrative

In October 2015, the Chinese Government and the Government of Cote d'Ivoire discussed the possibility of working together to implement the 112MW Gribo Popoli Hydropower Plant Construction Project. Then, on October 9, 2019, China Eximbank and the Government of Cote d'Ivoire signed a $285,928,798.53 (CFA 171,557,279,118) preferential buyer’s credit (PBC) agreement [CHINA EXIMBANK PBC NO. (2019) 11 TOTAL NO. (494)] for the 112MW Gribo Popoli Hydropower Plant Construction Project. The PBC agreement was ratified by the Ivorian Government on January 8, 2020. It entered into force on March 9, 2020. The borrowing terms of the PBC are unknown. However, it is known that the borrower is expected to use the proceeds of the PBC to finance 85% of the cost of a $336,386,821.80 commercial contract (including a $30.5806 million risk deposit) between the Government of Cote d'Ivoire and SinoHydro 5th Bureau, which was signed in November 2017. The Government of Cote d'Ivoire is also responsible for directly financing 15% ($50,458,023.27) of the commercial contract cost. According to the Government of Cote d'Ivoire's Aid Management Platform (AMP), the China Eximbank loan had achieved a 80.6% disbursement rate (CFA 138,376,607,559.86 out of CFA 171,557,279,118) as of December 31, 2023. 12 China Eximbank loan disbursements (worth CFA 138,376,607,559.86) were made between 2021 and 2032: a CFA 28,025,899,865 disbursement on July 31, 2021, and a CFA 15,963,581,178.86 disbursement on December 31, 2021, a CFA 14,016,023,361 disbursement on March 31, 2022, a CFA 6,297,699,749 disbursement on June 30, 2022, a CFA 12,963,496,194 disbursement on August 31, 2022, a CFA 13,193,693,537 disbursement on December 31, 2022, a CFA 18,749,338,934 disbursement on March 31, 2023, a CFA 10,234,049,498 disbursement on May 31, 2023, a CFA 3,664,540,585 disbursement on June 30, 2023, a CFA 3,746,302,401 disbursement on July 31, 2023, a CFA 3,493,984,615 disbursement on August 31, 2023, and a CFA 8,027,997,642 disbursement on December 31, 2023. The purpose of the project is to construct a 112.3 MW hydroelectric power plant in Gribo Popoli on the Sassandra River (downstream from Buyo dam site and the Soubré dam site) and 10 km of transmission lines. The project also has a ‘project management’ component, involving an Environmental and Social Impact Assessment (ESIA), a Resettlement Action Plant (RAP) and an Environmental and Social Management Plan (ESMP). Upon completion, the power plant is expected to generate 580 gigawatt hours of electricity output. SinoHydro 5th Bureau is the EPC contractor responsible for implementation. A formal groundbreaking ceremony took place on November 2, 2017. However, construction of the access road to the project site did not begin until January 2018. Several months later, in March 2018, construction of the diversion cofferdam and site facilities commenced. The ESIA was launched in May 2018, and the first compensation payments to displaced households were also made during calendar year 2018. The Government of Cote d'Ivoire issued an advance payment to SinoHydro 5th Bureau in May 2020. However, it was not until October 11, 2021 that the construction team began to assemble the power plant and the dam. Construction of the power plant and the dam began on October 27, 2021. On March 9, 2023, the overflow spillway was completed 100 days ahead of schedule. Then, on March 14, 2023, flow closure of the cofferdam took place. Dam impoundment took place on March 2, 2024. Project implementation is running behind schedule. The project was originally expected to reach completion within 40 months (estimated end date: May 2021). According to the Government of Côte d'Ivoire’s Aid Management Platform (AMP), the borrowing institution was delayed in its (advance) payment of $50,458,023.27 to the EPC contractor. Another source of delay was the Government of Côte d'Ivoire’s request (through the Ministry of Finance and Economy or MEF) for an amendment whereby the lender would provide disbursements in proportion to the project’s completion rate (progress).