China Eximbank provides $26.9 million export seller's credit for 132 kV al-Hiswa-Khormakser Transmission and Transformation Project (Linked to Record ID#64621)

Project narrative

On February 22, 2004, China Machinery Engineering Corporation (CMEC) and the Government of Yemen signed a $26,950,557.60 supplier credit (vendor financing) agreement for the 132 kV al-Hiswa-Khormakser Transmission and Transformation Project. This agreement was signed into law on June 5, 2005 (Law No. 31 of 2005). 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 $28 million cost of an EPC contract with CMEC. The project involved the construction of a 132 kV electricity transmission line from the al-Hiswa Power Station (محطة الحسوة الأيام or محطة الحسوة البخارية) to the town of Khormakser (خور مكسر) near the port city of Aden. CMEC also provided a supplier credit for the 60 MW al-Hiswa Power Station Expansion Project (see Record ID#64621).