China Eximbank provides loan for 84MW Impératrice Falls Dam and Electricity Transmission Lines Project

Project narrative

In 2017, the Government of Gabon came close to finalizing a loan agreement with China Eximbank for the 84MW Impératrice Falls Dam and Electricity Transmission Lines Project. There is evidence that a China Eximbank loan was eventually finalized for this project in the Government of Gabons annual reports , but the face value, borrowing terms, and commitment year are unknown. Sometime in 2018, 1,725,000,000 FCFA was drawn down. This project was to involve the construction of of a hydroelectric power plant at the "Chutes de l’Impératrice Eugénie" waterfalls on the Ngounié river in Ngounié Province, 5 km upstream of Fougamou. The purpose of this project is to supply power to Nobium de Mabounié, Manganèse de Ndjolé, the wood processing industries located in the Moyen-Ogooué province, and the cities of Mouila, Mandji, and Libreville. In 2010, the Government Gabon awarded the project contract to a company called CODER and construction started. However, the Government of Gabon terminated the contract in 2013 due to delays in implementation. Then, in 2014, the project contract was given to China Gezhouba Group Company (CGGC), and as of September 2, 2018, CGGC's implementation had not yet started. There are some indications that the China Eximbank loan for the 84MW Impératrice Falls Dam and Electricity Transmission Lines Project may have financially underperformed vis-a-vis the original expectations of the lender. On April 3, 2024, Gabon’s Ambassador to China transmitted a letter (reference number: 000115/AMBAGAB-RPC/24) to the transitional authorities in Gabon, urging them to consider a debt settlement mechanism whereby the Government of Gabon would repay its outstanding debts to China Eximbank by depositing the cash proceeds from the sale of 1 or 2 oil cargoes (worth $150 million per cargo) each year to UNIPEC in a China Eximbank-controlled escrow account.