China Eximbank provides $200.65 million buyer’s credit loan for Djibloho Regulating Reservoir Project (Linked to Project ID#995, #62082, and #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, 5 year maturity, and 2 year grace period. Then, some time after October 15, 2011 (which is when the commercial contract for the 120MW Djibloho Hydropower Station was signed), China Eximbank and the Government of Equatorial Guinea signed a $200,657,890.10 subsidiary buyer’s credit loan agreement for the Djibloho Regulating Reservoir Project. The proceeds of the loan were used by the borrower to finance 85% of the cost of a $236 million commercial (EPC) contract between the Government of Equatorial Guinea and Sinohydro Bureau 6 Co Ltd, which was signed on October 15, 2011. According to the Autonomous Fund for Amortization of Public Debt (Caja Autónoma de Amortización de la Deuda Pública) within Equatorial Guinea’s Ministry of Finance and Budget the China Eximbank buyer’s credit loan for the project had disbursed $117,815,206.60 as of December 31, 2019 and the borrower had made principal ($74,099,123.06) and interest ($26,677,862.39) repayments worth $100,776,985.45 as of December 31, 2019. This project involved the construction of a regulating reservoir on the Wele-Nzas (or Wele River), approximately 3 km upstream of the 120MW Djibloho Hydropower Station. It was undertaken to address the fact that inconsistent rainfall was adversely affecting the regular production and supply of power through the China Eximbank-financed 120MW Djibloho Hydropower Station (captured in Project ID#995). Sinohydro Bureau 6 Co Ltd was the contractor responsible for project implementation. Construction began in March 2013. Then, on November 30, 2018, Sinohydro Bureau 6 Co Ltd and the Government of Equatorial Guinea signed the project handover certificate. Upon the completion of the project, the storage capacity of the regulating reservoir was 1.272 billion cubic meters. A project completion ceremony was held on December 1, 2018.

Additional details

1. The Spanish project title is Embalse de Regulacion- Djiblohó or Proyecto del Embalse De Regulacion de la Central Hidroeléctrica de Djibloho or Proyecto de construccion del embalse de regulacion del Rio Wele Rio arriba de la Central Hidroelectrica de Djibloho or Construccion del embalse de regulacion Central Djiploho. The Chinese project title is 赤道几内亚吉布劳上游调蓄水库项目 or 赤道几内亚吉布洛上游调蓄水库工程. 2. Neither Boston University's Global Development Policy Center nor SAIS-CARI record the China Eximbank loan for this project. 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. This project is closely related to two other China Eximbank-financed projects: the Djibloho Power Transmission and Transformation Project (captured via Project ID#62082) and the 120MW Djibloho Hydropower Station Construction Project (captured via Project ID#995).

Number of official sources

24

Number of total sources

36