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Overview

China Eximbank provides $290.3 million preferential buyer’s credit for Phase 2 of Bata City Power Grid Expansion Project (Linked to Record ID#2108)

Commitments (Constant USD, 2023)$316,660,051
Commitment Year•2016Country of Activity•Equatorial GuineaDirect Recipient Country of Incorporation•Equatorial GuineaSector•EnergyFlow Type•Loan

Status

Project lifecycle

Completion

Pipeline: PledgePipeline: CommitmentImplementationCompletion

Timeline

Key dates

Commitment date
Jul 28, 2016
Start (actual)
Sep 1, 2017
End (planned)
May 1, 2019
End (actual)
Dec 6, 2019

Geospatial footprint

Map overview

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The purpose of this project was to fund the expansion of the city power grid in Bata, Equatorial Guinea. More detailed locational information can be found at: https://www.openstreetmap.org/relation/12718967

Stakeholders

Organizations involved in projects and activities supported by financial and in-kind transfers from Chinese government and state-owned entities

Ultimate beneficial owners

At least 25% host country ownership

Funding agencies

State-owned Policy Banks

  • Export-Import Bank of China (China Eximbank)

Receiving agencies

Government Agencies

  • Government of Equatorial Guinea

Implementing agencies

State-owned companies

  • Sinohydro Corporation Limited

Loan desecription

China Eximbank provides $290.3 million preferential buyer’s credit for Phase 2 of Bata City Power Grid Expansion Project

Interest type•Unknown

Narrative

Full Description

Project narrative

On July 28, 2016, the Government of Equatorial Guinea and China Eximbank signed a $290,321,617.40 preferential buyer’s credit (PBC) agreement [CHINA EXIMBANK PBC NO. (2015) 6 TOTAL NO. (348)] for the Phase 2 of Bata City Power Grid Expansion Project. The borrowing terms of the PBC are unknown. The proceeds of the PBC were to be used by the borrower to finance a commercial contract with Sinohydro Bureau 6 Co., Ltd. (a subsidiary of PowerChina), which was signed on October 8, 2013. According to Caja Autónoma de Amortización de la Deuda Pública within Equatorial Guinea’s Ministry of Finance and Budget, the China Eximbank PBC for the project had disbursed $181,649,992.31 as of December 31, 2019 and the borrower had made principal ($1,378,409.16) and interest ($4,568,272.73) payments worth $5,946,681.89 as of December 31, 2019. The loan's principal amount outstanding was $180,271,583.15 as of December 31, 2019. The project involved the construction of a 20KV medium voltage power grid, a 20KV medium voltage household metering system, a 20KV distribution network automation system, a low voltage power grid system, a low voltage household metering system, and new road lighting. It ultimately sought to provide electricity connections for all households in the the city of Bata. It officially commenced on September 1, 2017 after the signing of a supplementary agreement to the commercial contract, and it was originally expected to reach completion within 20 months (May 1, 2019). China’s Counsellor of the Economic and Commercial Office in Equatorial Guinea, Su Jianguo, inspected the project's progress in February 2018. This project was ultimately completed on or around December 6, 2019. A final project handover certificate was issued on April 10, 2021.

Staff comments

1. This project is also known as Equatorial Guinea Expansion and Modernization of City Power Distribution Network Project in Bata (Phase Two). The Chinese project title is 署巴塔城网二期项目 or 巴塔城市电网二期供电入户改扩建工 or 赤道几内亚巴塔电网 or 了巴塔电网二期项目 or 中国电建赤几巴塔电网二期工程 or BATA城市电网Ⅱ期. The Spanish project tittle is Expansión y Modernización de la Red de Transmisión Eléctrica de Bata (Fase II) or El proyecto de expansión y modernización de la Red de Distribución eléctrica en la Ciudad de Bata (fase dos) en Guinea Ecuatorial. 2. This China Eximbank loan is not included in the database of Chinese loan commitments that SAIS-CARI released in July 2020. Nor is it included it in the China’s Overseas Development Finance Dataset that Boston University's Global Development Policy Center published in December 2020. 3. The face value of the loan is drawn from ‘Cuadro General de la deuda al 31/12/2019’ from the Caja Autónoma de Amortización de la Deuda Pública within Equatorial Guinea’s Ministry of Finance and Budget. 4. China Eximbank also financed Phase 1 of Bata City Power Grid Expansion Project (as captured via Record ID#2108). 5. The borrower made debt service payments to the lender from an escrow account (ID#1360000100001102708). See https://www.dropbox.com/scl/fi/pk6rsp7qlg3uigv79jk4t/ordenes_de_pago_2020.pdf?rlkey=woy2yflgemcgvglz4392qg3qm&dl=0