China Eximbank provides $381.09 million preferential buyer’s credit for Greater Abuja Water Supply Project

On May 29, 2018, China Eximbank and the Government of Nigeria signed a $381,095,036.84 preferential buyer’s credit (PBC) agreement for the Greater Abuja Water Supply Project. The PBC (loan) carried the following borrowing terms: a 20 year maturity, a 7 year grace period, and a 2.5% interest rate. The final maturity date of the loan is March 21, 2038. As of December 31, 2020, Nigeria’s Debt Management Office (DMO) reported that the $381.09 million loan had not yet disbursed and the borrower had not made any interest or principal repayments to the lender. The proceeds of the PBC are to be used by the borrower to partially finance a commercial contract between the Federal Capital Development Authority (FCDA) and CGCOC Group Co., Ltd. (中地海外集团), which was signed on May 2, 2018. The purpose of this project is to provide potable water supply to Garki, Asokoro and the Central Business District. The project will rely upon the Lower Usuma Dam Water Treatment Plant and the Wupa Water Treatment Plant in Abuja to do so. CGCOC Group Co., Ltd. (中地海外集团) is the contractor responsible for implementation. Construction began in July 2021.

Additional details

1. The Chinese project title is 阿布贾城铁机车采购项目 or 了阿布贾城铁一期动车组和车辆段设备采购. 2. In the database of Chinese loan commitments that SAIS-CARI released in July 2020, it does not record the grace period for this loan. AidData records the grace period (7 years) that is reported by Nigeria’s Debt Management Office (DMO) in its ‘Loans Obtained from China Exim As At December 31, 2020’ publication. 3. On May 29, 2018, China Eximbank and the Government of Nigeria also signed a $157,000,000 preferential buyer’s credit (PBC) agreement for the Supply of Rolling Stocks and Depot Equipment for Abuja Light Rail Project (captured in Project ID#73400).

Number of official sources

18

Number of total sources

31