Narrative
Full Description
Project narrative
On 5 October, 2012, the Chinese Government and the Government of Benin signed a CFA 129 billion preferential loan framework agreement for the Akassato-Bohicon Road Rehabilitation Project. The terms and conditions specified in the framework agreement were a 20-year maturity and a 7-year grace period; however, the Chinese Government subsequently approved three separate tranche loans for Lot 1, Lot 2, and Lot 3 of the Akassato-Bohicon Road Rehabilitation Project, instead. In 2013, China’s Ministry of Commerce and the Government of Benin signed an RMB 141 million interest-free loan agreement for Lot 1 and an RMB 362.1 million interest-free loan agreement for Lot 2. On 23 August, 2013, China Eximbank and the Government of Benin signed an RMB 800 million government concessional loan (GCL) loan agreement [CHINA EXIMBANK GCL 2013 NO. (2013) NO. (37) TOTAL NO. (482) NO. (1420303052013111728)] for Lot 3, which carried the following terms: 20-year maturity, 7-year grace period, 1% interest rate, 0.25% commitment fee, and a 0.25% management fee. The proceeds of the MOFCOM loan for Lot 1 were to be used by the borrower to finance a commercial contract with China Geo-Engineering Corporation (CGC). The proceeds of the MOFCOM loan for Lot 2 were to be used by the borrower to finance a commercial contract with Chongqing International Construction Corporation (CICO) worth 30 billion CFAF. The proceeds of the GCL were to be used by the borrower to finance a commercial contract (ID#74/MTPT/DNCMP/SP) between Benin’s Ministry of Public Works and Transportation and China Xinxing Group General Corporation, which was signed on 5 March, 2013. The Akassato-Bohicon Road Rehabilitation Project involved the rehabilitation of a 103.8 km road segment along the No. 2 Interstate Highway from Akassato to Bohicon. The project was divided into three lots. Lot 1 involved the rehabilitation of a 12.3 km section from Akassato to Glo-Djigbé (PK 14 + 200 to PK 26 + 500). Lot 2 involved the rehabilitation of a 19.26 km section from Glo-Djigbé to Allada (PK 26 + 500 to PK 45 + 760). Lot 3 involved the rehabilitation of a 73 km section from Allada to Bohicon (PK45 + 760 to PK1 17 + 865). A formal groundbreaking ceremony for Lot 1 took place on January 5, 2013; however, Lot 1 construction did not commence until April 30, 2013. Lot 1 was officially handed over to the Government of Benin on August 12, 2015. A formal groundbreaking ceremony for Lots 2 and 3 was held on 16 January, 2014. Lot 2 was officially handed over to the Government of Benin on 28 September, 2016. Lot 3 was completed in March 2016. Record ID#30834 captures the CFA 129 billion preferential loan framework agreement. Record ID#58722 captures the RMB 141 million interest-free loan from MOFCOM for Lot 1. This project captures the RMB 362.1 million interest-free loan from MOFCOM for Lot 2. Record ID#58807 captures the RMB 800 million interest-free loan from China Eximbank for Lot 3.
Staff comments
1. The French project title is Projet de Réhabilitation de la route Akassato-Bohicon. The Chinese project title is 阿卡萨多-博依贡公路 or 贝宁阿卡萨多—博伊贡公路项目 or 阿卡萨托—博希孔公路修复工程. 2. According to the Parliament of Benin, the Chinese Government provided RMB 503.1 million of loans for Lot 1 and Lot 2. The face value of the loan that supported Lot 1 was RMB 141 million, so AidData assumes that the face value of the loan that supported Lot 2 was RMB 362.1 million. 3. Since loan terms for the interest-free loan are unavailable, AidData has set maturity period to 20 years by default and grace period to 10 years by default per China's Foreign Assistance White Paper (http://www.cidca.gov.cn/2018-08/06/c_129925064_3.htm) which states that the maturity period of interest-free loans is 20 years, with a drawdown period of 5 years, grace period of 5 years, and repayment over 10 years. AidData treats the drawdown period as providing 5 years of additional grace.