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
Project lifecycle
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
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%