China Eximbank provides $50 million preferential buyer's credit for Niamtougou Airport Renovation Project

Project narrative

In 2015, the Export-Import Bank of China and the Government of Togo signed a preferential buyer's credit (PBC) agreement worth $50 million (CFA 27.744 billion) for the Niamtougou Airport Renovation Project. The proceeds of this loan were to be used by the borrower to finance 85% of the cost of a CFA 32.64 billion franc commercial contract [Marché n°00170/2015/CR/MTPT /BANQUE NATIONALE DE CHINE] with China Civil Aviation Airport Construction Corporation (CACC), which was signed on March 16, 2015; the Government of Togo provided the remaining 15% of the cost of the contract. The borrowing terms of the loan are unknown. The Government of Togo agreed to establish an airport fee (RDIA) to guarantee the repayment of the loan. The project involved renovations of the international airport in the town of Niamtougou. More specifically, it involved the extension of the airport runway from 2,500 meters to 3,000 meters to allow larger aircrafts to use the airport. This included the modification of the aerodrome lights to improve the airport's lifetime and security, as well as reinforcing and repaving the existing runway, ramp, and the parking areas and the construction of a 14 km fence to meet safety and security standards set by the International Civil Aviation Organization. CACC won the bid for the renovation of the project in July 2014. On April 23, 2016, a groundbreaking ceremony took place. However, construction began in February 15, 2016. The project was originally expected to be completed 12 months after this date, but the project was still ongoing as of August 2018.