Narrative
Full Description
Project narrative
On May 16, 2017, the Jiangsu Branch of Bank of China Limited and Ethiopian Electric Power Corporation (EEPCo) signed a $18,285,936.98 buyer's credit loan agreement for the Mobile Electricity Substation Project. The borrowing terms of the loan included a 12.425-year maturity, a 2.919-year grace period, and a 8.56% interest rate, according to records retrieved from the Government of Ethiopia’s Debt Management and Financial Analysis System (DMFAS). The loan's first and last scheduled principal payment dates were April 15, 2020 and October 15, 2029, respectively. Its first and last scheduled interest payment dates were October 15, 2018 and October 15, 2029, respectively. The purpose of the project is to acquire (import) 7 mobile substations from NARI Group Corporation (NARI or 国电南瑞科技股份有限公司). The first batch of mobile substations were delivered in March 2017.
Staff comments
1. This Bank of China loan was not included in the database of Chinese loan commitments that SAIS-CARI released in 2020 and re-released in 2021. Nor was it included it in the Chinese Loans to Africa (CLA) Database — that is maintained by Boston University's Global Development Policy Center — as of August 2024. 2. The loan agreement that was signed in May 2017 is also known as the "Ethiopia Mobile Substation Project Export Buyer Credit Agreement." 3. The loan identification number in the Government of Ethiopia’s Debt Management and Financial Analysis System (DMFAS) is 20969000 and the corresponding project name in DMFAS is ‘MOBILE SUBSTATION POWER’. See https://www.dropbox.com/scl/fi/7nrczfanixvivmiyzqx3i/MOFED-Loan-Level-Data-on-Borrowing-Terms-and-Loan-Performance-September-2024_OTHER_PUBLIC.xlsx?rlkey=5sqhh9ii4t3x8cmz0jf6s7cod&dl=0 4. NARI Group Corporation (NARI) is a partially state-owned, publicly-listed company in China. It is the largest whole set supplier of electric power equipment in China and it is an active player in the global power industry. 5. The Chinese project title is 埃塞俄比亚移动变电站项目.