China Eximbank provides $105.74 million buyer’s credit loan for Malabo Natural Gas Power Plant Construction Project (Linked to Project ID#484)

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, a 5 year maturity, and a 2 year grace period. Then, in 2010, China Eximbank and the Government of Equatorial Guinea signed a subsidiary buyer’s credit loan agreement for the Malabo Natural Gas Power Plant Construction Project. The proceeds of the loan were used by the borrower to finance a $124.4 million commercial contract with China Machinery Engineering Corporation (CMEC). The estimated face value of loan is $105.74 million (since other subsidiary buyer’s credit loans that were approved through the $2 billion oil-backed buyer’s credit facility were use to finance 85% of commercial contract costs). This project involved the installation of three single cycle turbo-gas generators with a total installed capacity of 126MW at a power plant in the city of Malabo. Construction began in 2010 and it was completed in 2011. The power plant was successfully connected to the national grid on October 18, 2011. The project was subsequently inspected on May 1, 2012.

Additional details

1. The Chinese project title is 经营的马拉博电厂 or 以赤道几内亚马拉博欧洲角燃气电厂扩容项目 or 的马拉博燃机电厂扩容项目 or 赤几马拉博燃气电厂项目. 2. This loan is not included in the database of Chinese loan commitments that SAIS-CARI released in July 2020.

Number of official sources

13

Number of total sources

15