ICBC provides CFA 254.1 billion loan for Ferkessédougou Dry Port Construction Project

On August 31, 2018, Cote d’Ivoire’s President Alassane Ouattara and Chinese President Xi Jinping signed an MOU regarding the Ferkessédougou Dry Port Construction Project. Then, on September 6, 2018, Liu-Yan, President of China National Complete Plant Import Export Corporation (COMPLANT) and Ally Coulibaly, Cote d’Ivoire’s Minister of Foreign Affairs, signed a protocol to mobilize CFA 262 billion (EUR 399.4 million or USD 473.4 million) for the Ferkessédougou Dry Port Construction Project. On January 30, 2020, ICBC and the Government of Cote d’Ivoire signed a loan agreement worth CFA 254,171,513,219.12 Ferkessédougou Dry Port Construction Project. The borrowing terms of the loan are unknown. However, it is known that the loan is backed by a Sinosure credit insurance policy. The borrower is expected to use the proceeds of the loan to finance a CFA 254,171,513,995 commercial (EPC) contract (for Lot 1) between the Government of Cote d’Ivoire and China National Complete Plant Import Export Corporation (COMPLANT), which was signed on May 22, 2019. According to the Government of Côte d'Ivoire’s Aid Management Platform (AMP), the ICBC had not disbursed as of December 31, 2022. The project is divided into two ‘lots’. Lot 1 involves site remediation and development activities as well as the construction of a (multimodal) logistics platform — with warehouses, cold chain equipment, etc. — and hydrocarbon depot. Lot 2 involves the construction of a slaughterhouse, a cattle market, and an industrial zone for the development and processing of agricultural and mining products. The project site is spread over an area of 3185 hectares and located in the village of Dékovogo, approximately 5 km from the capital of Tchologo and near the northern city of Ferkessédougou. Upon completion, the dry port of Ferkessédougou is expected to relieve congestion and bring the autonomous port of Abidjan closer to its regional partners such as Mali, Burkina Faso, and Niger. It is also expected to make a lasting contribution to the development of the northern regions of the country and to the enhancement of the economic potential of the Poro, Tchologo, and Bagoué regions in Savanes District, and Bounkani, and Gontougo regions in Zanzan district. The project is also expected to generate more than 71,000 direct jobs that will directly benefit young men and women. Lot 2 is being financed and implemented on a public-private partnership (PPP) basis. Lot 1, which is spread over an area of 732 hectares, is not. COMPLANT is the contractor responsible for the implementation of Lot 1. A foundation-laying ceremony took place on May 21, 2021. However, according to the Government of Côte d'Ivoire’s Aid Management Platform (AMP), this project faced implementation delays due to resource mobilization problems related to the host government’s counterpart financing contribution and the credit insurance policy with Sinosure. Then, in June 2022, the Government of Cote d’Ivoire partially met its counterpart financing commitment (by providing 68.4% of the required amount: CFA 26 billion out of CFA 38 billion). Lot 1 was originally expected to take 30 months to complete (November 21, 2023). The project as a whole (Lots 1 and 2) was originally expected to reach completion on December 31, 2025.

Additional details

1. The French project title is construction du port sec de Ferkessédougou or construction du port sec de Ferké or TRAVAUX D'AMENAGEMENT DU SITE ET DE CONSTRUCTION DE LA PLATEFORME MULTIMODALE ET DU DÉPÔT D'HYDROCARBURES or PER II Projet de construction du port sec de FERKESSEDOUGOU. The Chinese project title is 科特迪瓦旱港建设项目 or Ferkessédougou旱港（Dry Port）项目 or 旱港多式联运平台及油库. 2. Some sources suggest that the EPC contract with COMPLANT was signed on May 22, 2018. 3. According to one Government of Côte d'Ivoire source, 85% of the cost of the EPC contract (CFA 216,045,786,305) is being financed with a loan from ICBC and remaining 15% of the cost of the Lot 1 EPC contract (CFA 38,125,726,995) is being financed by domestic banks. However, according to the Government of Côte d'Ivoire’s Aid Management Platform (AMP), the face value of the ICBC loan is CFA 254,171,513,219.12. Also, some sources suggest that Chinese banks other than ICBC may have been involved in financing 85% of the cost of the Lot 1 EPC contract. This issue merits further investigation. 4. The AMP system identification number for the ICBC loan is 11200716835017.

Number of official sources

15

Number of total sources

37