Narrative
Full Description
Project narrative
On December 27, 2013, the Chinese Government and the Government of Togo signed an RMB 628 million (CFA 49.282 billion franc) preferential loan framework agreement for the Phase 2 of Lomé Bypass Road Development and Asphalting Project (as captured via Record ID#72803). Then, on February 14, 2014, the Export-Import Bank of China and the Ministry of Economy and Finance of the Republic of Togo signed a government concessional loan (GCL) agreement for Phase 2 of the Lomé Bypass Road Development and Asphalting Project). The loan (GCL) carried the following estimated borrowing terms: a 1.8728% interest rate, a 6.3639-year grace period, and a 20.2271-year maturity. The proceeds of the loan were to be used by the borrower to finance a commercial contract with China Road and Bridge Corporation (CRBC). When the commercial contract [Marché N° 010/2008/MTPT/SG/DGTP] was initially issued on November 6, 2008, its value was $70,278,490,37. However, it was modified on June 2, 2014 and its value was increased to $98,831,214. According to 2014, 2015, and 2016 reports published by the Bilateral Cooperation Department of Togo’s Ministry of Planning and Development, the GCL disbursed $49,090,342 in 2014, $11,108,065 in 2015, and $526,981 in 2016. Phase 2 involved the development and asphalting of a 20.54 km road segment between the Golf Club de Lomé (along National Route 1 or RN1) and the town of Noépé, on Togo’s border with Ghana. The entire ring road was a four lane, 34.8 kilometers long road in the eastern and northern parts of Lomé. The second phase specifically focused on creating roads to allow trucks to travel to Ghana, Côte d'Ivoire or Burkina Faso, without being forced to use the congested arteries of downtown Lomé; it also included the renovation of secondary roads. CRBC was the contractor responsible for implementation. The project commenced on September 10, 2015 and was originally scheduled for completion in May 2019. However, the project faced a number of delays related to the freeing of the right-of-way by locals. As of August 2017, the project had achieved a 31% completion rate. As of November 2018, it had achieved a 67.2% completion rate. By September 2019, the project was nearing completion. The project was completed by August 2020, but its precise completion date is unknown.
Staff comments
1. The Chinese project title is 的多哥洛美绕城二期 or 洛美绕城公路项目（第二阶段) or 绕城公路二期. The French project title is La Seconde phase du contournement de Lomé or Le second contournement de Lomé or la 2è phase du projet du grand contournement de Lomé. 2. The China Eximbank loan that supported this project is not included in the database of Chinese loan commitments that SAIS-CARI released in July 2020. 3. The estimated borrowing terms (maturity, grace period, and interest rate) of the loan are drawn from the World Bank's Debtor Reporting System (DRS). See https://www.dropbox.com/s/2sw4f7gluxa52fk/DRS%20Official%20Commitments%20from%20China%20Through%202021.xlsx?dl=0 and https://www.dropbox.com/s/ab8qt4n6jijcbhd/IDS_Average%20interest%20on%20new%20external%20debt%20commitments.xlsx?dl=0 and https://www.dropbox.com/s/949n5rctiue6d7c/IDS_Average_grace_period_and_maturity_on_new_external_debt_commitments.xlsx?dl=0