EXIM Bank Loans $208 Million USD for Ethiopa's Amerti Neshi Hydroelectric Power Plant and Mugher Cement Projects (linked to #45047)

On September 24, 2007, the Commercial Bank of Ethiopia and China Eximbank signed a $208 million loan agreement to finance the expansion of the Mugher Cement Enterprise and the construction of Fincha-Amerti-Neshi multi-purpose projects, including hydro-power generation and irrigation infrastructure. The terms of lending are as follows: 13 year maturity and an interest rate of LIBOR + a 2-3% margin. The interest rate is calculated using average 6M LIBOR in September 2007 (5.365%) + 2.5% = 7.865%. The agreement was signed by the CBE President Abie Sano and China Eximbank President Li Ruogu. The Muger Cement Enterprise expansion project began on April 21, 2012. The Ethiopian government planned to cover the remaining $68 million of the project's predicted $276 million total cost. In December 2006, the Ethiopian Electric Power Corporation (EEPCo) and the China Gezhouba Group Corporation (CGGC) signed an agreement to construct the 97 MW Amerti Neshi Hydroelectric Power plant on the Neshi River. Construction was delayed for more than two years for several reasons, including the 24 month delay of the China Eximbank loan, power interruptions, and logistical problems while transporting construction materials from Djibouti port. However, the Fincha-Amerti-Neshe (FAN) Hydropower and Irrigation project was eventually completed on November 17th, 2011. The opening ceremony of the Fincha-Amerti-Neshi project was held on December 17, 2011.

Additional details

The expansion of Mugher Cement Enterprise Project and the Fincha-Amerti-Neshe (FAN) Hydropower and Irrigation Project are two of the 16 projects financed under a $500 million Master Loan Framework Agreement (#45047) that was signed between the Chinese Eximbank and the Ministry of Finance and Economic Development of Ethiopia at FOCAC in 2006. Both projects were approved in 2007 through the $208 million China Eximbank loan.

Number of official sources

7

Number of unofficial sources

20