China Eximbank provides RMB 605.5 million government concessional loan for Phase II of Abidjan City Water Supply Project (Linked to Record ID#30120)

Project narrative

On April 11, 2012, the Chinese Ambassador to Cote d'Ivoire and Ivorian Minister of Foreign Affairs signed a preferential loan framework agreement in which China Eximbank would finance over CFA 100 billion for the Abidjan City Water Supply Project. Then, on November 4, 2014, China Eximbank and Government of Cote d'Ivoire signed a government concessional loan (GCL) agreement [China Eximbank GCL NO. (2014) 24 TOTAL NO. (527) or Eximbank GCL Chine NO. (2014) 24 TOTAL NO. (527) NO de série 1420303052014110027] worth RMB 605,538,842 (or CFA 48,490,720,000) for Phase II of Abidjan City Water Supply Project. The loan was ratified by the Legislature of Cote d'Ivoire on December 7, 2014. It carried the following borrowing terms: 7-year grace period, a 20-year maturity, a 2% interest rate, a 0% default (penalty) interest rate, a 0.25% commitment fee, and a 0.25% (RMB 1,5103,847.25) management fee. The borrower was expected to use the proceeds of the loan to finance an RMB 605,538,842 (CFA 48,490,720,000) commercial contract (between China Geo-Engineering Corporation (CGC) and the Government of Cote d'Ivoire, which was signed on June 6, 2013 and amended on September 18, 2013. According to the Government of Cote d'Ivoire’s Aid Management Platform (AMP), 103% of the face value of the China Eximbank loan (CFA 53,933,704,720 of CFA 51,603,595,065.93) had been disbursed as of October 31, 2017. 11 China Eximbank loan disbursements were made: a CFA 4,849,072,000 disbursement on June 30, 2015, a CFA 9,698,144,000 disbursement on August 18, 2015, a CFA 7,218,470,000 disbursement on August 28, 2015, a CFA 2,545,790,800 disbursement on January 31, 2017, a CFA 3,896,015,200 disbursement on May 31, 2016, a CFA 4,789,960,000 disbursement on July 31, 2016 a CFA 4,878,076,000 disbursement on August 31, 2016, a CFA 5,795.599,600 disbursement on September 14, 2016, a CFA 5,795,626,495 disbursement on February 28, 2017, a CFA 3,924,058,625 disbursement on April 30, 2017, and a CFA 542,892,000 disbursement on October 31, 2017. The Ivorian Government also agreed to provide counterpart financing of CFA 985,040000, but ultimately only disbursed CFA 692,986,703. The project involved the installation of water pump stations and other infrastructure to distribute water from South Comoé groundwater table in Bonoua to the southern zone of the capital city of Abidjan (in particular, the island of Petit Bassam, which includes the municipalities of Marcory, Koumassi, Treichville and Port-Bouët). More specifically, it involved the construction and equipping of a water treatment station in Bonoua (4000 m3/h); the construction and equipping of a recovery or overpressure station in Moossou; the construction and equipping of a recovery station in Port Bouet; facilitating the transfer of raw water from the catchment fields of Ono (7 boreholes) and Abrobakro (11 boreholes) to the Bonoua treatment plant; and facilitating the transfer of treated water from the Bonoua treatment plant to the Port Bouet pick-up station. The island of Petit Bassam, despite its hydraulic infrastructure, had been plagued by drinking water supply difficulties since the 2000s. The project sought to put an end to these recurring water shortages. China Geo-Engineering Corporation (CGC) was the EPC contractor responsible for implementation. An official groundbreaking ceremony took place on March 2, 2015 but construction itself did not begin until November 2, 2015. The project encountered difficulties in October 2016 with electrical connections for the boreholes of the Abrobakro catchment field. Two months later, in December 2016, construction was suspended for 15 days due to a failure by the Government of Cote d'Ivoire to pay CFA 5 billion of compensation to displaced households. However, by October 31, 2017, the project had achieved a 96% completion rate and a 95% financial execution rate. Construction end in December 2017. Then, on July 12, 2018, the project passed trials and inspections and it was officially handed over to the Ivorian authorities. A project acceptance certificate was issued by the owner in April 2019. The project’s originally scheduled project commencement and completion dates (as specified in the commercial contract) were January 2, 2016 and December 31, 2018, respectively. The project is now managed by the National Water Fund, an Ivorian state-owned company. China Eximbank also provided an RMB 602 million government concessional loan for the first phase of the project (as captured via Record ID#30120).