China Eximbank provides RMB 350 million overseas investment loan to China Gezhouba Group for the São Lourenço Water Supply System Acquisition Project

In March 2019, the Export-Import Bank of China (China Eximbank) Hubei Branch provided China Gezhouba Group Company Limited (CGGC)'s Brazil Branch with an RMB 350 million overseas investment loan in order to acquire 100% of the São Lourenço Water Supply System Company, a special purpose vehicle and public-private partnership. Sinosure provided overseas investment and equity insurance to prevent risks associated with exchange restrictions and political violence, with a maximum underwritten amount of USD 210 million. The other borrowing terms are unknown. According to a Government of Hubei press release, the total acquisition price was BRL 457 million (about RMB 930 million). On May 29, 2018, CGGC officially completed equity transfers with Brazil's Camargo Correa Group and the Andrade Gutierrez Group, making Gezhouba Group the only shareholder of the project. The acquisition further allows Gezhouba Group to possess the operational rights to water-supply related projects for Sistema Produtor São Lourenço, a Brazilian company, in the most populous city in Brazil. While CGGC is in control of the supply system, China Energy Engineering Corporation (CEEC, or 中国能源建设有限公司) seems to be responsible for the construction of the project. This project was launched in 2014 to improve water treatment utilities, pumping stations, and 83 kilometers of pipelines. Previously, Andrade Guiterrez Group and Camargo Correa of Brazil were responsible for the construction of the project. In July 2018, the project was completed and put into commercial operation. The water supply capacity of the São Lourenço water system in Brazil has a designed daily water supply capacity of 410,000 tons, which can provide water demand for more than 1.5 million local residents and address the water supply shortage.

Additional details

Chinese project title: 巴西聖諾倫索供水項目 This project is alternately referred to as the "San Norenzo" project in many Chinese government sources. Only source confirming the date of the loan to CGGC is a media source; because acquisition was completed in May 2018 and the project completed in July 2018, it may be the case that the loan was provided earlier. However, in absence of contrary evidence, estimated commitment date is left later chronologically than the estimated completion date.

Number of official sources

7

Number of total sources

14