ICBC provides $195.7 million loan for Transmission Lines and Associated Facilities of the Kafue Gorge Lower Hydropower Plant Project (Linked to Project ID#57536, 92289)

On May 17, 2018, Kafue Gorge Lower (KGL) Power Development Corporation Limited — a special purpose vehicle and wholly-owned subsidiary of Zambia Electricity Supply Corporation (ZESCO) Limited, a state-owned power company in Zambia — signed a $195,766,479.52 loan facility agreement with Industrial and Commercial Bank of China Limited and Industrial and Commercial Bank of China Limited, Dubai (DIFC) Branch for the Transmission Lines and Associated Facilities of the Kafue Gorge Lower Hydropower Plant Project. The borrowing terms of this loan are unknown. The purpose of the project is to construct three 330kV transmission lines and associated facilities to evacuate power from the 750MW Kafue Gorge Lower hydroelectric power plant. As of February 2022, AidData had not yet identified any evidence of project implementation.

Additional details

1. The ICBC loan that was issued for this project is not included in the the database of Chinese loan commitments that SAIS-CARI released in July 2020. 2. In 2018, Blackhall’s Laws of Zambia (revised edition of the laws of Zambia containing primary and secondary legislation) published the following information on its website (https://zambialaws.com/): “The USD195,766,479.52 loan facilities agreement dated 17th May, 2018, among Kafue Gorge Lower Power Development Corporation Limited as Borrower, Industrial and Commercial Bank of China Limited as Arranger and Original Lender and Industrial and Commercial Bank of China Limited, Dubai (DIFC) branch as Facility Agent and Security Agent, for the financing of the engineering, procurement and construction of three 330kV transmission lines and associated facilities for the evacuation of power from the 750 MW Kafue Gorge Lower hydroelectric power station.” See https://www.zambialaws.com/Zambia2018Pdfsi/SI%2089%20of%202018.pdf 3. AidData has coded this transaction as a collateralized loan because Industrial and Commercial Bank of China Limited, Dubai (DIFC) branch was selected as the security agent (i.e. collateral agent) for the loan. When lenders take collateral as security for their loans, a collateral/security agent is often appointed to enforce rights against the collateral in the event of the borrower's default under the loan. See https://www.zambialaws.com/Zambia2018Pdfsi/SI%2089%20of%202018.pdf 4. On November 13, 2017, Kafue Gorge Lower (KGL) Power Development Corporation Limited signed a $1,530,576,039.16 syndicated buyer’s credit facility agreement with China Eximbank and ICBC. This loan is captured via Project ID#57536 and Project ID#92289.

Number of official sources

6

Number of total sources

9