China Eximbank provides $208.4 million buyer’s credit loan for New Capital of Oyala (Djibloho) Construction Project (Linked to Project ID#62125, #484)

In late 2006, China Eximbank and the Government of Equatorial Guinea signed a $2 billion buyer’s credit facility agreement (互惠贷款) for various infrastructure projects (see 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, on April 28, 2015, China Eximbank expanded the buyer’s credit facility agreement (i.e. credit line) by another $500 million (see Project ID#62125). In 2017, China Eximbank and the Government of Equatorial Guinea signed a $208,423,208.75 subsidiary buyer’s credit loan agreement for New Capital of Oyala (Djibloho) Construction Project. The proceeds of the loan were to be used by the borrower to finance 85% of the cost of a $246 million commercial (EPC) contract between the Government of Equatorial Guinea and China Construction First Building (Group) Corporation Limited (中建一局签), which was signed on April 6, 2017. According to Caja Autónoma de Amortización de la Deuda Pública within Equatorial Guinea’s Ministry of Finance and Budget, the China Eximbank loan for the project had disbursed $36,780,566.25 as of December 31, 2019 and the borrower had made principal ($14,712,224.00) and interest ($3,617,572.94) repayments worth $18,329,796.94 as of December 31, 2019. Djibloho (or Oyala) is a city in Equatorial Guinea that is being built to replace the national capital of Malabo. The President of Equatorial Guinea has said that Malabo (the official capital on the island of Bioko) is vulnerable to coup attempts because those who seek to overthrow the government can arrive by sea, necessitating the construction of a new inland capital, Oyala, which is not far from the President’s home village. The New Capital of Oyala (Djibloho) Construction Project involves the construction of six government ministry and commission buildings (including buildings for the Presidency, Ministry of Defense, Ministry of Security, Ministry of Internal Affairs, Ministry of Treasury and Budget, Ministry of Foreign Affairs and Cooperation with a total construction area of 29431.00 square meters and a total floor area of 52667.9 square meters); a presidential office complex (presidential palace) with 1200 offices (with a total construction area of 79045.14 square meters and a total floor area of 160641.4 square meters); and 'social' housing for government officials (with a total construction area of 47869.07 square meters and a total floor area of 163110.87 square meters). Djibloho (or Oyala) will also have a new university and international airport. China Construction First Building (Group) Corporation Limited (中建一局签) — a wholly-owned subsidiary of China State Construction Engineering Corporation Ltd. — is the contractor responsible for project implementation. On July 16, 2017, a groundbreaking ceremony took place. Then, in October 2017, China’s Ambassador to Equatorial Guinea, Chen Guoyou, visited the project site. The foundation of the new Ministry of Finance office building was poured on March 9, 2019. Construction was still ongoing as of August 2020 and at that time the city was reportedly uninhabited. The project was originally expected to reach completion in August 2018. However, it has faced major implementation challenges and delays. The COVID-19 pandemic halted progress. Then, in May 2023, Equatorial Guinea's Vice President Teodoro Nguema Obiang Mangué said that China Construction First Building (Group) Corporation Limited was at risk of breaching its contractual obligations to the Government of Equatorial Guinea and it had 30 days to explain in writing why it had stopped working on the New Capital of Oyala (Djibloho) Construction Project.

Additional details

1. This project is also known as the Oyala New Town Project, the Equatorial Guinea Eurasian New Town Project, the Construction of 10 Ministerial Buildings in Oyala Project, or the Equatorial Guinea New City Project. The Chinese project title is 欧亚拉新城项目 or 吉布劳新城项目 or 赤几欧亚拉新城项目 or 赤道几内亚吉布劳新城建设咨询服务项目 or 中国建筑一局（集团）有限公司赤道几内亚欧亚拉新城项目营地. The Spanish project title is Ciudad Nueva Oyala or Ciudad Nueva Djibloho or Proyecto de Construcción de 10 Edificios Ministerios en Oyala or Construcción de 10 edificios ministeriales en Oyala or Construcción de diez (10) edificios ministeriales en Oyala. 2. 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. 3. Some sources indicate that the project scope includes 10, rather than 6, government ministry and commission buildings. This issue warrants further investigation.

Number of official sources

39

Number of total sources

54