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Overview

CDB provides $30 million loan for 767 km Ethiopia–Djibouti Gas Pipeline Planning Project (Linked to Record ID#60932)

Commitments (Constant USD, 2023)$32,721,647
Commitment Year•2016Country of Activity•EthiopiaDirect Recipient Country of Incorporation•Hong Kong (China)Sector•Industry, Mining, ConstructionFlow Type•Loan

Status

Project lifecycle

Implementation

Pipeline: PledgePipeline: CommitmentImplementationCompletion

Timeline

Key dates

Commitment date
Jul 8, 2016

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% Chinese ownership

Funding agencies

State-owned Policy Banks

  • China Development Bank (CDB)

Receiving agencies

Joint Venture/Special Purpose Vehicles

  • POLY-GCL Petroleum Group Holdings Limited

Loan desecription

CDB provides $30 million loan for 767 km Ethiopia–Djibouti Gas Pipeline Planning Project

Interest type•Unknown

Narrative

Full Description

Project narrative

On July 8, 2016, China Development Bank’s Qinghai Branch and POLY-GCL Petroleum Group Holdings Limited [保利协鑫石油天然气集团控股有限公司 or 协鑫（集团）控股有限公司] — a special purpose vehicle that is jointly owned by the state-owned China Poly Group Corporation and the closely held Hong Kong-based Golden Concord Group Limited (GCL) — signed a $30 million loan agreement for the 767 km Ethiopia–Djibouti Gas Pipeline Planning Project. The proceeds of the loan were to be used by the borrower to finance preparatory work for the 767 km Ethiopia–Djibouti Gas Pipeline Construction Project (captured via Record ID#60932).

Staff comments

1. This project is also known as the Poly-GCL Oil and Gas Project, the Ethiopia-Djibouti Oil & Gas Project, the Ethiopia-Djibouti Natural Gas Project, and the Ogaden–Djibouti Pipeline Construction Project. The Chinese project title is 保利协鑫埃塞俄比亚-吉布提石油天然气项 or 的保利协鑫埃塞俄比亚-吉布提石油天然气项 or 协鑫埃塞俄比亚-吉布提石油天然气项目 or 埃吉油气项目 or 就埃塞-吉布提油气项目. 2. POLY-GCL Petroleum Group Holdings Limited [保利协鑫石油天然气集团控股有限公司 or 协鑫（集团）控股有限公司] was legally incorporated on November 7, 2012. Some sources suggest that the Ethiopian Government holds (or held) a 15% ownership stake in POLY-GCL Petroleum Group Holdings Limited. However, most sources identify POLY-GCL Petroleum Group Holdings Limited as a joint venture of China Poly Group Corporation and Golden Concord Group Limited (GCL). 3. The Ministry of Finance and Economic Development’s Annual Public Sector Debt Portfolio Report For the Year 2017/18 No.19 suggest that the $30 million CDB loan was contracted by the Government of Ethiopia. This issue warrants further investigation.