Project ID: 89490

CMEC provides $15 million bridge loan for 15MW Lusiwasi Upper Hydropower Project

Commitment amount

$ 16347746.21818015

Adjusted commitment amount

$ 16347746.22

Constant 2021 USD

Summary

Funding agency [Type]

China Machinery Engineering Corporation (CMEC) [State-owned Company]

Recipient

Zambia

Sector

Energy (Code: 230)

Flow type

Loan

Level of public liability

Other public sector debt

Financial distress

Yes

Infrastructure

Yes

Category

Intent

Mixed (The next section lists the possible statuses.)

Commercial

Development

Representational

Mixed

Financial Flow Classification

OOF-like (The next section lists the possible statuses.)

Official Development Assistance

Other Official Flows

Vague (Official Finance)

Flows categorized based on OECD-DAC guidelines

Project lifecycle

Status

Completion (The next section lists the possible statuses.)

Pledge

Commitment

Implementation

Completion

Suspended

Cancelled

Milestones

Commitment

2018-05-31

Actual complete

2021-02-10

Geography

Description

On May 31, 2018, China Machinery Engineering Corporation (CMEC) and Zambia Electricity Supply Corporation (ZESCO) Limited — Zambia’s state-owned power company — signed a $15 million supplier’s credit (bridge loan) agreement for the 15MW Lusiwasi Upper Hydropower Project. The loan carries the following borrowing terms: a 1.5 year maturity an a 6% interest rate. It amount outstanding was The loan’s amount outstanding was $14,780,000 as of December 31, 2018, $14,780,000 as of December 31, 2019, $14,780,000 as of December 31, 2020, $17,041,704 (inclusive of $2,260,563 in interest arrears) as of June 30, 2021 and $6,897,015 as of June 30, 2022. The purpose of the project is to construct a 15MW run-of river hydropower plant — with three 5MW power generation units — that is located about 700 km from Lusaka, and is about 5 km upstream of the existing 12MW Lusiwasi Hydropower Station. A canal which conveys the water towards the units is approximately 4.5 km up to the Forebay from the canal intake. CMEC is the contractor responsible for implementation. On February 14, 2020, the first of the three 5MW power generation units went into operation. By February 10, 2021, all three power generation units were in operation.

Additional details

1. This project is also known as the Lusiwasi Upper Hydropower, 15MW - Bridging Finance Project.

Number of official sources

8

Number of total sources

9

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Details

Cofinanced

No

Direct receiving agencies [Type]

Zambia Electricity Supply Corp. (ZESCO) [State-owned Company]

Implementing agencies [Type]

China Machinery Engineering Corporation (CMEC) [State-owned Company]

Loan Details

Maturity

2 years

Interest rate

6.0%

Grant element (OECD Grant-Equiv)

1.9598%

Bilateral loan

Investment project loan

Supplier's credit/Export seller's credit