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Overview

China Eximbank provides $90 million seller's credit to CWE for Upper West Regional Electrification Project

Commitments (Constant USD, 2023)$115,752,463
Commitment Year2010Country of ActivityGhanaDirect Recipient Country of IncorporationChina (People's Republic of)SectorEnergyFlow TypeLoan

Status

Project lifecycle

Completion

Pipeline: PledgePipeline: CommitmentImplementationCompletion

Timeline

Key dates

Commitment date
Oct 22, 2010
Start (actual)
Nov 18, 2011
Last repayment (originally scheduled)
Apr 18, 2025

Geospatial footprint

Map overview

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The purpose of this project was to extend electricity to 400 communities in the Upper West Region. It was expected, upon completion, to benefit about 300,000 people across the nine districts within the Upper West Region, creating 30 permanent jobs and 200 temporary jobs to serve as an ingredient needed for the socio-economic development of the beneficiary communities. More detailed locational information can be found at: https://www.openstreetmap.org/relation/3328013

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

  • Export-Import Bank of China (China Eximbank)

Receiving agencies

Government Agencies

  • Government of Ghana

State-owned companies

  • China International Water and Electrical Corporation (CWE)

Implementing agencies

State-owned companies

  • China International Water and Electrical Corporation (CWE)

Loan description

China Eximbank provides $90 million seller's credit to CWE for Upper West Regional Electrification Project

Interest typeUnknownMaturity14.5 years

Narrative

Full Description

Project narrative

On October 22, 2010, the Government of Ghana and China International Water and Electric Corporation (CWE) signed an $90 million supplier credit agreement for the Upper West Regional Electrification Project. This credit has a 14.5 year year maturity. Its final maturity date is April 30, 2025. The loan’s (principal) amount outstanding was GHS 211,230,000 ($37,719,642) as of December 31, 2020 and GHS 154,600,000 ($29,730,769) as of December 31, 2021. In order to finance its supplier credit agreement with the Government of Ghana, CWE secured an export seller’s credit from China Eximbank. The purpose of this project was to extend electricity to 400 communities in the Upper West Region. It was expected, upon completion, to benefit about 300,000 people across the nine districts within the Upper West Region, creating 30 permanent jobs and 200 temporary jobs to serve as an ingredient needed for the socio-economic development of the beneficiary communities. CWE was the EPC contractor responsible for implementation. It signed an EPC contract on March 8, 2011. Construction began in October 2011, and an official groundbreaking ceremony was held on or around November 18, 2011. As of June 2012, the project was expected to be completed by the end of December, 2012. It was eventually completed in October 2013, two years early as the project was originally planned to be completed in four years

Staff comments

1. This project is also known as the NES — Upper West Regional Electrification Project. The Chinese project title is 上西部省电气化项目. 2. In the database of Chinese loan commitments that SAIS-CARI released in July 2020, it identifies the commitment year as 2012 and the face value of the supplier credit as $130 million. AidData records the commitment year as 2010 because the supplier credit agreement was finalized on October 22, 2010. 3. AidData records the face value of the credit as $90 million because this is the value that was presented to and approved by Ghana’s Parliament. This $90 million figure has been independently corroborated by Ghana’s Public Interest and Accountability Committee (PIAC), which is an independent statutory body in Ghana that is mandated to promote transparency and accountability in the management of public revenues. 4. The (principal) amounts outstanding are drawn from the Ghanaian Ministry of Finance’s Annual Public Debt Reports. These amounts are reported in GHS by the Ministry of Finance. AidData has estimated the USD amounts by applying the average GHS-to-USD exchange rate in 2020 (5.6-to-1) and the average GHS-to-USD exchange rate in 2021 (5.2-to-1). 5. 2010026 is the ID assigned to the loan in the Ghanaian Auditor General Reports