Overview

China Eximbank provides $26 million for Oyo Hospital Construction Project (Linked to Record ID#60219)

Commitments (Constant USD, 2023)$48,789,418

Commitment Year•2006Country of Activity•CongoDirect Recipient Country of Incorporation•CongoSector•HealthFlow Type•Loan

Status

Project lifecycle

Completion

Pipeline: PledgePipeline: CommitmentImplementationCompletion

Timeline

Key dates

Commitment date: Jun 19, 2006

Start (actual): May 7, 2008

End (actual): Mar 10, 2017

First repayment: Dec 31, 2010

Last repayment: Dec 27, 2025

Geospatial footprint

Map overview

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This project involved the construction of a 200-bed hospital in the town of Oyo, the district of Oyo, the Central Cuvette Department, and the health district of Alima-Oyo (which serves 53,000 local residents). More detailed locational information can be found at https://www.openstreetmap.org/way/261075036.

Stakeholders

Organizations involved in projects and activities supported by financial and in-kind transfers from Chinese government and state-owned entities

Ultimate beneficial owners

At least 25% host country ownership

Funding agencies

State-owned Policy Banks

Export-Import Bank of China (China Eximbank)

Receiving agencies

Government Agencies

Government of Republic of Congo

Implementing agencies

State-owned companies

Beijing Uni-construction Group

Collateral providers

State-owned companies

Société Nationales des Pétroles Congolais (SNPC)

Loan desecription

China Eximbank provides $26 million for Oyo Hospital Construction Project in Congo 2006

Grace period•5 yearsGrant element•65.0736%Interest rate (t₀)•0.25%Interest type•Fixed Interest RateMaturity•20 years

Collateral

This China Eximbank loan -- and other subsidiary China Eximbank loans approved under a June 19, 2006 framework agreement that was renewed/extended in 2012 -- was collateralized against cash proceeds from SNPC oil export sales to Chinese importers (through an offtake agreement), which were deposited in a China Eximbank-controlled escrow account. The Republic of Congo was required to maintain a minimum cash balance in the escrow account equivalent to approximately 20% of its total outstanding debt to China Eximbank. The cash balance in the China Eximbank-controlled escrow account was $534,238,226 (CFA 272,846,414,000) in 2011, an unknown amount in 2012, an unknown amount in 2013, an unknown amount in 2014, an unknown amount in 2015 (equivalent to 26% of SNPC oil sales in 2015), $281,560,937 in 2016 (equivalent to 7,558,672 barrels of oil or 32% of SNPC oil sales in 2016), $338,285,020 in 2017 (equivalent to 23.25% of SNPC oil sales in 2017), $513,780,005 in 2018 (equivalent to 7,411,386 barrels of oil, eight oil cargoes, or 30.22% of SNPC oil sales in 2018), $523,547,187 in 2019 (equivalent to 8,228,065 barrels of oil, 9 oil cargoes, or 32.56% of SNPC oil sales in 2019), $266,659,781 in 2020 (equivalent to 6,349,813 barrels of oil, 7 oil cargoes, or 31.61% of SNPC oil sales in 2020), $319,164,228 in 2021 (equivalent to 4,585,056 barrels of oil or 21.4% of SNPC oil sales in 2021), and $356,343,684 in 2022 (equivalent to 3,634,514 barrels of oil 13.09% of SNPC oil sales in 2022).

Narrative

Full Description

Project narrative

On June 19, 2006, China Eximbank and the Republic of Congo signed a $1.6 billion loan framework agreement — also known in the Republic of Congo as the “strategic partnership” (“partenariat stratégique”) — that allowed the Republic of Congo to obtain China Eximbank loans for infrastructure projects through a securitization mechanism: Société Nationales des Pétroles Congolais (SNPC)—the country’s state-owned oil company—agreed to deposit a portion of the cash proceeds from its oil exports into an escrow account that is controlled by China Eximbank. This framework agreement (captured in Record ID#60219) was ratified on October 26, 2006. One of the subsidiary loans that was approved through the framework agreement was a loan in 2006 for the Oyo Hospital Construction Project. This loan reportedly carried the following terms: a 0.25% interest rate, a maturity of 20 years, and a grace period of 5 years. It was fully repaid by the borrower. As of 2014, USD 26 million had been disbursed. The loan’s (principal) amount outstanding was $0 as of December 31, 2019. The Oyo Hospital Construction Project involved the construction of a 200-bed hospital in the town of Oyo, the district of Oyo, the Central Cuvette Department, and the health district of Alima-Oyo (which serves 53,000 local residents). The hospital has several departments, including administration, general medicine, surgery, cardiology, ophthalmology, ENT, otolaryngology, urology, pharmacy, morgue, radiology, and laboratory analysis. Beijing Uni.-Construction Group Co., Ltd. (BUCC) — also known as Beijing Residential Development & Construction Group Corporation（BRCC) — was the contractor responsible for project implementation. The project was plagued by various delays. A foundation-laying ceremony took place on May 7, 2008 and the originally scheduled project completion date was June 30, 2012. However, the hospital was not open to the public until March 10, 2017.

Staff comments

1. The project is also known as the the Edith Lucie Bongo Ondimba Hospital Construction Project and the Oyo General Hospital and Hospital Road Project. The French project title is Hôpital Général D’Oyo or L’Hôpital Général Edith Lucie Bongo-Ondimba (HGELBO). The Chinese project title is 奥尤医院项目 or 奥约医院 or 北京住总OYO医院 or 奥约综合医院 or 刚果（布）Oyo医院 or 刚果（布）艾迪露希欧尤医院 or 刚果共和国OYO医院项目. 2. In the database of Chinese loan commitments that SAIS-CARI released in July 2020, it identifies a $15 million China Eximbank loan for this project. AidData records the face value of the loan ($26,000,000) that was reported by the Congolese authorities to the World Bank and reported in the World Bank’s September 2014 Republic of Congo Economic Update publication. One source suggests that a Chinese Government grant was also provided for this project. This issue merits further investigation.