China Eximbank provides $55 million loan for Phases 1 and 2 of Solar Street Light Installation Project

Project narrative

On November 23, 2014, the Chinese Government and the Government of Togo signed a preferential loan framework agreement for Phases 1 and 2 of the Solar Street Light Installation Project. Then, near the end of 2014, China Eximbank and the Government of Togo signed a $55 million loan agreement for Phases 1 and 2 of the Solar Street Light Installation Project. This loan carried the following terms: a maturity of 25 years, a grace period of 5 years, and an estimated interest rate of 1.8728%. The purpose of the project was to install 13,000 solar-powered streetlights across Togo. The installation of the solar-power streetlights was prioritized in dispensaries, schools, markets and other public places. The completed project was to provide lighting for 144 km of road, improving traffic safety at night. Upon completion, the project was expected to facilitate a significant reduction in government spending on public street lighting (which totaled nearly $4 million in 2011‑2014) and bring Togo closer to its goal of using 10% renewable energy by 2020. ZTE Corporation was the contractor responsible for project implementation; they also agreed to provide training on project maintenance to local personnel. The African Biofuel and Renewable Energy Company (SABER-ABREC) (also known as "Société africaine des biocarburants et des énergies renouvelables") collaborated with ZTE to implement the project. The project was placed under the supervision of Togo's Ministry of Energy and Mines. In 2011, the Ministry of Mines and Energy conducted a feasibility study for the project. Phase 1 involved the installation of 7,042 solar street lights in more than 400 towns and villages in Togo. It began at the end of 2013 and was completed in August 2015. The second phase involved the construction of the remaining 5958 streetlights. Phase 2 began in mid-February 2016 and was originally expected to reach completion in June 2016. The project was ultimately completed sometime between March 2016 and August 2018 (likely around June 2016). A publication released in 2018 noted that the many of the solar-powered street lights were not lit up despite some being barely two years old.