China Eximbank provides $14.4 million seller's credit for 60MW al-Hiswa Power Station Expansion Project (Linked to Record ID#64650)

Project narrative

On April 16, 2003, China Machinery Engineering Corporation (CMEC) and the Government of Yemen’s Ministry of Planning and International Cooperation signed a $14.4 million supplier credit (vendor financing) agreement for the 60MW al-Hiswa Power Station Expansion Project. The borrowing terms of the supplier’s credit, which CMEC provided with support from an export seller’s credit from China Eximbank, are unknown. The borrower was to use the proceeds from the supplier credit to finance approximately 80% of the $18 million cost of an EPC contract with CMEC. The project involved the reconstruction and expansion of the 60MW al-Hiswa Power Station (哈斯瓦电站 or محطة الحسوة الأيام or محطة الحسوة البخارية) near the port city of Aden. The EPC contract, which was signed on signed on April 16, 2003, went into force on October 19, 2003. The project was originally supposed to reach completion by October 19, 2005. However, the implementation period was extended in November 2005 and given a new end date of March 18, 2006. The expanded power plant was ultimately expected to go into operation in March 2007. The project appears to have reached completion in 2008; however, its precise completion date is unknown. CMEC also provided a supplier credit for the 132 kV al-Hiswa-Khormakser Transmission and Transformation Project (captured in Record ID#64650).