China Eximbank provides $221 million buyer’s credit loan for Phase 2 of 66kV Malabo Power Grid Project (Linked to Project ID#205, #484)
Commitment amount
$ 280287038.04103196
Adjusted commitment amount
$ 280287038.04
Constant 2021 USD
Summary
Funding agency [Type]
Export-Import Bank of China (China Eximbank) [State-owned Policy Bank]
Recipient
Equatorial Guinea
Sector
Energy (Code: 230)
Flow type
Loan
Level of public liability
Central government debt
Infrastructure
Yes
Category
Project lifecycle
Geography
Description
China Eximbank provides $201.2 million buyer’s credit loan for Phase 2 of 66kV Malabo Power Grid Project (Linked to Project ID#205, #484)”. Set description field to “In 2006, China Eximbank and the Government of Equatorial Guinea signed a $2 billion oil-backed buyer’s credit 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, a 5 year maturity, and a 2 year grace period. Then, in March 2010, China Eximbank and the Government of Equatorial Guinea signed a $201,250,532.92 subsidiary buyer’s credit loan agreement for Phase 2 of 66kV Malabo Power Grid Project. The proceeds of the loan were used to finance a $221 million commercial contract with China Machinery Engineering Corporation (CMEC). 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 $148,960,746.15 as of December 31, 2019 and the borrower had made principal ($9,930,716.42) and interest ($14,720,836.26) repayments worth $24,651,552.68 as of December 31, 2019. This project involved the construction of a power plant, substations, and 66kV and 20kV power lines in the city of Malabo. CMEC was the general EPC contractor responsible for project implementation. The Changjiang Institute of Survey, Planning, Design, and Research was the contractor responsible for project design. Construction commenced on December 10, 2010 and ended on May 21, 2011. A formal project completion ceremony took place on June 4, 2012. China Eximbank also financed Phase I of 66kV Malabo Power Grid Project, which is captured in Project ID#205.
Additional details
1. The Chinese project title is 赤道几内亚马拉博城市电网建设项目二期工程. The Spanish project title is Proyecto de la Red Electrica de 66Kw de la Ciudad de Malabo e interconeccion con Sipopo. 2. Some sources refer to this loan as a concessional loan; others refer to it as a subsidiary buyer’s credit loan under the $2 billion oil-backed buyer’s credit credit facility agreement that was signed in 2006. This issue warrants further investigation.
Number of official sources
9
Number of total sources
13
Details
Cofinanced
No
Direct receiving agencies [Type]
Government of Equatorial Guinea [Government Agency]
Implementing agencies [Type]
China Machinery Engineering Corporation (CMEC) [State-owned Company]
Changjiang Institute of Survey, Planning, Design and Research (CISPDR) [State-owned Company]
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%