China Eximbank provides $57.6 million preferential buyer’s credit loan for 13.5 km Togblékopé-Tsévi Road Rehabilitation and Expansion Project (Linked to Record ID#43758 and #392)

Project narrative

On September 7, 2009, the Export-Import Bank of China and the Ministry of Economy and Finance of the Republic of Togo signed a $165 million preferential buyer’s credit (PBC) agreement for the Togolese Road Network Partial Renovation Project (captured by Record ID#392). The PBC carried the following terms: a maturity of 20 years, a grace period of 7 years, and an interest rate of 2%. One of the projects financed with the proceeds of the loan was the 81.3 km Tandjouaré–Cinkassé-Burkina Faso Border Road Rehabilitation Project (captured via Record ID#43758). Approximately $57,606,545.93 of the loan proceeds were used by the borrower to finance 85% of the cost of a $67,772,406,98 commercial contract [Marché N° 008/2008/MTPT/SG/DGTP] between the Government of Togo and China Road and Bridge Corporation (CRBC), which was signed on November 6, 2008. The project involved the asphalting and rehabilitation of an 83 km segment along National Route 1 (RN1) that runs from Tandjouaré to Cinkassé and then onward to Togo’s border with Burkina Faso. It also involved the asphalting and rehabilitation of a 5 km segment that runs from National Route 1 (RN1) and the Lomé Golf Club to the town of Togblékopé. CRBC was the contractor responsible for implementation. A formal project commencement ceremony took place on February 4, 2010 and the project’s expected completion date was June 2012. However, on July 14, 2014, the Ministry of Infrastructure and Transport of the Republic of Togo and CRBC revised the commercial contract [Marché N° 008/2008/MTPT/SG/DGTP] that they initially signed on November 6, 2008. The contract revision specified that the 81.3 km Tandjouaré–Cinkassé-Burkina Faso Border Road Rehabilitation Project would be replaced with the 13.5 km Togblékopé-Tsévi Road Rehabilitation and Expansion Project (at no additional cost). The Togblékopé-Tsévi Road Rehabilitation and Expansion Project involved the rehabilitation and expansion of a 13.5 km segment along National Route 1 (RN1) that runs from Togblékopé to Tsévi. It also involved development and asphalting of the Togblékopé-Davié section and development of a 736-meter road segment that connects the REN1 to a tool booth in Davié. CRBC was the contractor responsible for implementation; its contract with the Togolese Government included the free provision of quarries and building by the Togolese Government, in addition to full exemption from taxes, duties, and levies. Work was originally expected to start during the second quarter of 2013 and reach completion within 28 months. Work ultimately began in August 2014 and was completed on September 27, 2016. The road passed final inspection on May 11, 2018. Record ID#68465 captures the loan commitment for the 13.5 km Togblékopé-Tsévi Road Rehabilitation and Expansion Project. Record ID#43758 captures the China Eximbank loan commitment for the 83 km Tandjouaré–Cinkassé-Burkina Faso Border Road Rehabilitation Project, which was effectively cancelled by China Eximbank.