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Overview

CDB provides $83.3 million loan for High Voltage Electrical Network Expansion and Maintenance Project (Linked to Record ID#62258)

Commitments (Constant USD, 2023)$86,482,880
Commitment Year•2019Country of Activity•Equatorial GuineaDirect Recipient Country of Incorporation•Equatorial GuineaSector•EnergyFlow Type•Loan

Status

Project lifecycle

Implementation

Pipeline: PledgePipeline: CommitmentImplementationCompletion

Timeline

Key dates

Commitment date
Jan 22, 2019
First repayment (originally scheduled)
Jan 21, 2022
Last repayment (originally scheduled)
Jan 19, 2029

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% host country ownership

Funding agencies

State-owned Policy Banks

  • China Development Bank (CDB)

Receiving agencies

Government Agencies

  • Government of Equatorial Guinea

Loan description

CDB provides $83.3 million loan for High Voltage Electrical Network Expansion and Maintenance Project

Grace period•3 yearsGrant element•29.9791%Interest rate (t₀)•3.263%Interest type•Variable Interest RateLoan tenor•6-month rateMaturity•10 years

Narrative

Full Description

Project narrative

On January 22, 2019, the Hubei Branch of China Development Bank (CDB) and the Government of Equatorial Guinea signed an EUR 200 sovereign credit cooperation agreement (captured via Record ID#62258). Borrowings under this framework agreement are earmarked for electricity infrastructure construction activities and carry the following borrowing terms: a 10-year maturity, a 3-year grace period (until the first interest payment date on January 22, 2022), an interest rate of 6-month EURIBOR plus a 3.5% margin, a 0.3% commitment fee, and a 1.5% upfront (management) fee. According to Caja Autónoma de Amortización de la Deuda Pública within Equatorial Guinea’s Ministry of Finance and Budget, this loan had fully disbursed as of December 31, 2019 but the borrower had not made any principal or interest repayments as of December 31, 2019. Caja Autónoma de Amortización de la Deuda Pública later reported the CDB made an additional disbursement for the High Voltage Electrical Network Expansion and Maintenance Project worth $19,501,799.09 on June 10, 2022. The purpose of the project is to expand and maintain the high-voltage electrical network in Equatorial Guinea's Continental Region.

Staff comments

1. The Spanish project title is Red Eléctrica Alta Tensión Ampliacion y Mantenimiento Proyecto or Proyecto de Ampliación, Operación y Mantenimiento de la Red Eléctrica de Alta Tensión de la Región Continental, or ampliacion, mant, red elect alta tension. 2. The face value of the loan is drawn from ‘Cuadro General de la deuda al 31/12/2019’ from the Caja Autónoma de Amortización de la Deuda Pública within Equatorial Guinea’s Ministry of Finance and Budget. 3. AidData has estimated the loan's all-in interest rate (3.264%) -- at the time it was issued -- by adding 3.5% to average 6-month EURIBOR in January 2019 (-0.236%).