China Eximbank provides $63 million buyer’s credit loan for Phase I of the 141 km Umm Ruwaba-Abu Gebieha Road Project (Linked to Project ID#57039)

On July 29, 2008, the Export-Import Bank of China and the Government of Sudan signed a $3 billion oil-backed master framework agreement (or line of credit) to finance various infrastructure projects (captured via Project ID#57039). This resources-credit cooperation package is backed by future revenues from the sale of oil exports. Each subsidiary buyer’s credit loan (BCL) issued through the framework agreement carries a 15-year maturity and 5.6% interest rate. One of the subsidiary loans approved through this agreement in 2009 was a $63 million BCL for Phase I of the 141 km Umm Ruwaba-Abu Gebieha Road Project. Phase I involved the construction of a 141 km road that begins in Umm Ruwaba (أم روّاب) in North Kordofan State and extends southward in flat terrain to the town of Abu Gebeiha (أبو جبيهة) in South Kordofan State. Sinohydro Group Limited was the EPC contractor responsible for project implementation. However, Technocon Engineering Group (a Sudanese contracting company) was also involved in the construction of the road (most likely as a subcontractor). The project's groundbreaking ceremony was held on February 9, 2010. The project was originally scheduled to be completed in March 2013. The project implementation's encountered significant implementation difficulties because the construction team's campsite was attacked by rebel forces on January 28, 2012, and 29 Chinese workers were kidnapped. The Chinese contractor did not return to Sudan, and Phase I appears to have been completed by Technocon Engineering Group, reportedly on or around February 21, 2018. There are some indications that the China Eximbank loan issued for Phase I of the 141 km Umm Ruwaba-Abu Gebieha Road Project may have underperformed vis-a-vis lender expectations. According to Sudan’s Finance Minister Ali Mahmood Abdel-Rasool, China Eximbank suspended its financing for 11 projects in Sudan following the secession of South Sudan in July 2011, which triggered a major loss of oil revenue (a key source of collateral for China Eximbank loans). Ali Mahmood Abdel-Rasool said at the time that the Government of Sudan had previously pledged oil revenues (worth 120,000 barrels per day) to China Eximbank as a source of collateral. Then, on February 18, 2012, the Chinese Government announced that it had agreed to reschedule the outstanding debt obligations of the Government of Sudan by extending loan repayment periods by 5 years (as captured via Project ID#30421). According to the External Debt Unit of the Central Bank of Sudan, the Government of Sudan's total arrears to Chinese creditors amounted to $3.864 billion ($2.608 billion in principal, $1.129 billion in interest, and $127 million in penalty interest) as of March 31, 2022.

Additional details

1. This project is also known as the 141 km South Kordofan Um Rawaba-Abu Gibeha Road Project, or Aum Roaba-Abu Gebaha Road Project, or Umm Ruwaba-Abu Jubeiha Road Project, or South Kordofan State Ring Road. The Arabic project title is أم روابة – أبوجبيهة. The project is referred to as 苏丹南科尔多凡州乌姆路瓦巴—阿布弓背哈公路项目 or 141项目 or 苏丹乌阿公路 or 苏丹乌姆—阿布公路 in Chinese. 2. Some sources suggest that, during implementation, this project may have been divided into two phases (i.e. rescoped) such that the first phase of the project only covered a 105 km stretch of road. 3. The SAIS-CARI Chinese Loans to Africa Database reports the loan's maturity to be 20 years and its interest rate to be 3.5%. However, AidData uses the borrowing terms (15-year maturity, 5.6% interest rate) that applied under the master framework agreement/credit line (captured via Project ID#57039). 4. Phase II was financed by a non-Chinese bank and non-Chinese contractors starting in 2018. This phase sought to complete the ring road by constructing a 215 km segment connecting Abu Jubeiha to Kaloqi, Talodi, and Kadugli.

Number of official sources

4

Number of total sources

10