China Eximbank pledges $968,842,265 loan for the Mandji Island Special Economic Zone Project

Project narrative

In 2011, China Communications Construction Company (CCCC) and the Government of Gabon signed a memorandum or understanding (MOU) regarding the Mandji Island Special Economic Zone Project. The special economic zone of Mandji (Port-Gentil) was established — by Decree No. 0126 dated January 22, 2013 following the adoption of law 10/2011 — to promote investment, create jobs and increase exports. It consists of an industrial area measuring 926 hectares, a residential area of 382 hectares, a cybercity (digital village) of 412 hectares, and an industrial and commercial port. It is aimed principally at the oil and timber-processing industries. Then, in 2015, China Eximbank reportedly agreed in principle to provide a $968,842,265 loan for the Mandji Island Special Economic Zone Project according to the following borrowing terms:: 20 year maturity, 7 year grace period, and 2% interest rate. This would be the first of two China Eximbank loans for the project. However, it does not appear that either loan has been approved since China Eximbank signaled its interest in the project in 2015. If the project is implemented, it is projected to create 1,500 to 2,300 jobs during the construction phase and 15,000 to 25,000 jobs during operational phase.