China Eximbank provides RMB 1.1 billion government concessional loan for National Power Grid Upgrade Project (Linked to Record ID#59408, #70267)

Project narrative

In September 2013, the Government of Cote d'Ivoire submitted a financing proposal to China Eximbank for the National Power Grid Upgrade Project. After years of negotiations, in December 2015, three different financing agreements for this project were signed: (1) On December 7, 2015, China Eximbank and the Government of Cote d'Ivoire signed a preferential buyer's credit (PBC) agreement [n° PBC (2015) No.21 Total No. (363)] worth $601,981,890.17 (CFA 466,327,469,519.30) for the National Power Grid Upgrade Project (captured via Record ID#70267). The Ivorian Council of Ministers ratified this agreement on February 10, 2016. (2) On December 16, 2015, China Eximbank and the Government of Cote d'Ivoire signed an RMB 1,105,039,777 (CFA 99,188,354,657.51) government concessional loan (GCL) agreement [n° GCL (2015) No.19 Total No. (558)] for the National Power Grid Upgrade Project (captured via Record ID#70270). The Ivorian Council of Ministers ratified this agreement on February 10, 2016. (3) On December 16, 2015, the Chinese Government issued a $35 million (CFA 21 billion) grant in support of this project (captured via Record ID#59408). The China Eximbank loans and Chinese Government grant together financed 95.2% of the total project cost equal to $852.6 million. The Government of Cote d'Ivoire agreed to directly finance the remaining $40.93 million, representing 4.8% of the total project cost. According to the Government of Côte d'Ivoire’s Aid Management Platform (AMP), China Eximbank made 10 loan disbursements through the GCL and the PBC (worth CFA 463,854,581,844.60) between 2016 and 2023: a CFA 72,323,780,816 disbursement on December 31, 2016, a CFA 128,908,276497 disbursement on December 31, 2017, a CFA 48,312,845,505 disbursement on December 31, 2018, a CFA 52,554,492,426 disbursement on April 30, 2019, a CFA 39,110,946,491 disbursement on October 31, 2019, a CFA 39,068,964,446 disbursement on December 31, 2010, a CFA 9,998,271,271 disbursement on March 31, 2021, a CFA 26,691,721,342.40 disbursement on December 31, 2021, a CFA 52,800,459,631 disbursement on May 31, 2022, and a CFA 2,985,780,134 disbursement on May 31, 2023. The project involved the construction of 946 kilometers of 225kV power transmission lines and 736 kilometers of 90kV power transmission lines, the installation of 13 new transformers, and the rehabilitation of 14 old transformers. More specifically, the project involved the construction of a 225 kV, 162 km transmission line that runs from Sérébou to Bondoukou, the construction of a 90 kV, 138 km transmission line that runs from Agnibilékro to Bondoukou via Tanda, the construction of a 90 kV, 170 km transmission line that runs from Bondoukou to Bouna, the construction of a 90 kV, 231 km transmission line that runs from Bouna to Kong, the construction of a 90 kV, 93.1 km transmission line that runs from Kong to Ferké, the construction of a 90 kV, 58 km transmission line that runs from Attakro to Daoukro, the construction of a 90 kV, 170 km transmission line that runs from Bouake 2 to Daoukro, the construction of a 90 kV, 57 km transmission line that runs from Daloa to Vavoua, the construction of a 90 kV, 54 km transmission line that runs from Zuénoula to Vavoua, the construction of a 90 kV, 66 km transmission line that runs from Seguela to Mankono, and the the construction of a 90 kV, 79 km transmission line that runs from Zuénoula to Mankono, the expansion of the Agnibilékro substation, the construction of 90kV substations at Tanda, Bouna, Vavoua, Mankono and Daoukro the construction of 225/90kV substations at Sérébou and Bondoukou, the construction of a 90/33kV substation at Kong, the doubling of a transmission line at the 225 kV Kossoubouake substation. The project was expected to take place in four zones: Zone 1 in the North-east, Zone 2 in the Center-North, Zone 3 in the Center-West and Zone 4 in the West. The ultimate objective of the project was to provide electricity to 500 villages along the transmission lines. China National Electric Engineering Co. (CNEEC) and China National Machinery Industry Corporation (SINOMACH) were the EPC contractors responsible for implementation. China Railway 25th Bureau and CMEC were also involved in implementation (most likely as subcontractors). The project was overseen by Société des Energies de Côte d’Ivoire (CI-ENERGIES), a state-owned asset holding company that is responsible for managing assets in the electricity sector. Project implementation commenced on December 28, 2016. However, a formal groundbreaking ceremony did not take place until July 7, 2018. The project was scheduled to take place over 43 months and end in July 2020. However, it was officially completed on April 30, 2021 (when all provisional acceptance certificates -- or PACs -- had been obtained). The project received a final acceptance certificate from CI-ENERGIES in December 2022.