China Eximbank provides $261 million buyer’s credit loan for 88.6 km Micameseng-Bongora Road Reconstruction Project (Linked to Project ID#484)
Commitment amount
$ 292913923.6601066
Adjusted commitment amount
$ 292913923.66
Constant 2021 USD
Summary
Funding agency [Type]
Export-Import Bank of China (China Eximbank) [State-owned Policy Bank]
Recipient
Equatorial Guinea
Sector
Transport and storage (Code: 210)
Flow type
Loan
Level of public liability
Central government debt
Infrastructure
Yes
Category
Project lifecycle
Geography
Description
In 2006, China Eximbank and the Government of Equatorial Guinea signed a $2 billion oil-backed buyer’s credit facility agreement for various infrastructure projects (captured in Project ID#484). All subsidiary loans approved under this facility agreement carry the following terms: a 5.5% interest rate, 5 year maturity, and 2 year grace period. Then, in 2015, China Eximbank and the Government of Equatorial Guinea signed a $261 million subsidiary buyer’s credit loan agreement for the 88.6 km Micameseng-Bongora Road Reconstruction Project. The proceeds of the loan were used by the borrower to finance a commercial contract with China Road and Bridge Corporation (CRBC), which was signed in September 2015. This project involves the rehabilitation of an 88.6 km, two-way two-lane asphalt road — with a design speed of 60 km per hour — that starts in Micomiseng and ends in Bonkoro. More than 95% of its work has been completed, and the project is expected to be completed before the end of 2019 or in the first quarter of 2020.
Additional details
1. The Chinese project title is 赤道几内亚米格梅森－埃比贝因道路项目 or 赤道几内亚米高梅森-伯格洛沥青公路项目. 2. The Spanish project title is Carretera Micomiseng-Bonkoro.
Number of official sources
6
Number of total sources
7
Details
Cofinanced
No
Direct receiving agencies [Type]
Government of Equatorial Guinea [Government Agency]
Implementing agencies [Type]
China Road & Bridge Corporation (CRBC) [State-owned Company]
Government of Equatorial Guinea [Government Agency]
Collateral
The buyer's credit loans under the $2 billion USD facility were secured via deposit accounts opened by Government of Equatorial Guinea in China Eximbank. The Government of Equatorial Guinea deposited the proceeds from hydrocarbon exports into these accounts.A repayment guarantee equivalent to 30 percent (minimum) of the outstanding stock of debt was required to be in the accounts at all times.
Loan Details
Maturity
5 years
Interest rate
5.5%
Grace period
2 years
Grant element (OECD Grant-Equiv)
9.6724%