China Eximbank provides CFA 11.85 billion preferential buyer’s credit for the 161/66/20 kV Sokodé Substation and Transmission Line Construction Project

Project narrative

On November 9, 2012, the Export-Import Bank of China and the Government of Togo signed a preferential buyer’s credit (PBC) agreement worth CFA 11,847,661,500 francs (or $23.49 million) for the 161/66/20 kV Sokodé Substation and Transmission Line Construction Project. The loan (PBC) carried the following estimated borrowing terms: a 1.8728% interest rate, 7.526-year grace period, and a 20.026-year maturity. The proceeds of the loan were on-lent by the Government of Togo to the Communauté Electrique du Bénin (CEB). CEB was an inter-governmental organization jointly owned by the Governments of Benin and Togo responsible for the power supply between the two countries. CEB used the loan proceeds to finance a commercial contract that it signed with TBEA Co., Ltd. on March 6, 2012. China Eximbank disbursed $17,986,828 in support of this project in 2014, $34,981,375 in support of this project and Phase 2 of the Rural Electrification Project (captured via Record ID#53463) in 2015, and $1,141,160 in support of this project in 2016. The project involved the construction of a new 161/66/20 kV substation in Sokodé, which was connected to the existing Atapame-Kara 161 kV transmission line (that provides electricity to central Togo) and the existing Kara-Sokodi 66 kV transmission line and 20 kV transmission line (that provides electricity to 5 cities in central Togo). It also involved the construction of the Kara-Mango-Dapaong (northern Togo), the Onigbolo-Parakou and the Sakété-Porto Novo transmission (“interconnection”) lines in order to create an additional electricity supply route from Nigeria to the regions of North Benin and North Togo, and facilitate the supply of electricity from Sakété to Porto-Novo. It also sought to improve the city of Atakpamé's electricity supply. The specific technical details were as follows: a 161/66/20 kV substation, a one-kilometer 161 kV double-circuit line, a 0.5-kilometer 66 kVv double-circuit line, a 2×6 km 20 kV power distribution line, a 0.3-kilometer access road, and the design design, supply, transportation, insurance, civil engineering, construction, installation, commissioning and commissioning of electromechanical equipment of the substation, which coverd an area of 13,512 square meters. The transmission lines were intended to solve central and northern Togo's insufficient power supply and lay the foundation for cross-border and trans-regional grid interconnection. Upon completion, it was expected that this project would become a “hub” for Togo-Benin power grid connection. TBEA Co., Ltd. was the contractor responsible for implementation. CEB’s 24 month-long contract with TBEA entered into force on March 21, 2013. The project's construction period was originally expected to last two years. The project officially started on July 18, 2013. A groundbreaking ceremony, attended by President of Togo Faure Gnassingbé, was held on August 30, 2013. The project was ultimately put into operation on March 8, 2015. The official project completion ceremony was held on March 26, 2015, ahead of the scheduled end; President Gnassingbé and President of Benin Thomas Boni Yayi wer both in attendance. China Eximbank also funded the second phase of the project (as captured via Record ID#36406).