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Overview

China Construction Bank provides $70.3 million loan for Video Surveillance Project

Commitments (Constant USD, 2023)$72,997,346
Commitment Year•2019Country of Activity•Equatorial GuineaDirect Recipient Country of Incorporation•Equatorial GuineaSector•Government And Civil SocietyFlow Type•Loan

Status

Project lifecycle

Implementation

Pipeline: PledgePipeline: CommitmentImplementationCompletion

Timeline

Key dates

Commitment date
Nov 1, 2019
First repayment
May 1, 2022
Last repayment
Oct 28, 2034

Geospatial footprint

Map overview

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Across the island of Malabo in Equatorial Guinea video surveillance camera systems were installed. In particular, these surveillance systems were placed at the Presidential Palace, at the Malabo International Airport, and along the Malabo-Sipopo Highway. More detailed locational information can be found at: Presidential Palace: https://www.openstreetmap.org/way/310746849 Malabo International Airport: https://www.openstreetmap.org/way/277609548 Malabo-Sipopo Highway: https://www.openstreetmap.org/way/197139758, https://www.openstreetmap.org/way/198332293, https://www.openstreetmap.org/way/198332291

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 Commercial Banks

  • China Construction Bank Corporation (CCB)

Receiving agencies

Government Agencies

  • Government of Equatorial Guinea

Implementing agencies

Private Sector

  • Huawei Technologies Co., Ltd.

State-owned companies

  • China National Technical Import and Export Corporation (CNTIC)

Insurance providers

State-owned companies

  • China Export & Credit Insurance Corporation (Sinosure)

Loan desecription

China Construction Bank provides $70.3 million loan for Video Surveillance Project

Grace period•2.5 yearsGrant element•26.7516%Interest rate (t₀)•4.90238%Interest type•Variable Interest RateLoan tenor•6-month rateMaturity•15 years

Narrative

Full Description

Project narrative

On June 28, 2019, Huawei Technologies Co., Ltd. submitted a financing proposal to the Government of Equatorial Guinea for a Video Surveillance Project. Then, in November 2019, China Construction Bank and the Government of Equatorial Guinea signed a $70,325,843.26 loan agreement for a Video Surveillance Project. The loan carried the following borrowing terms: a 15 year maturity, a 2.5 year grace period, an interest rate of 6-month LIBOR plus a 3% margin, a 0.5% commitment fee, and a 1% upfront (management) fee ($1.054.887,65). It was backed by a Sinosure credit insurance policy. The borrower was expected to us the proceeds of the loan to finance 85% of the cost of a $82.736.286.19 commercial contract between the Government of Equatorial Guinea and China National Technical Import and Export Corporation (CNTIC). According to Caja Autónoma de Amortización (CAA) de la Deuda Pública within Equatorial Guinea’s Ministry of Finance and Budget, the loan's principal amount outstanding was $70,325,843.26 as of December 31, 2019. CNTIC was the general EPC contractor responsible for project implementation. However, Huawei Technologies Co., Ltd. appears to have also been involved (most likely as a subcontractor). No additional details are available, but several Government of Equatorial Guinea sources refer to projects that involved the installation of a video surveillance camera system at the Presidential Palace, the installation of a video surveillance camera system at Malabo International Airport, and the installation of a video surveillance camera system at Malabo-Sipopo Highway.

Staff comments

1. This project is also known as the National Video Surveillance Supply and Installation Project. The Spanish project title is El Proyecto Videovigilancia or Sistema de Videovigilacia de Guinea Ecuatorial (FE) or Videovigilancia de GNQ or el proyecto de suministro e instalación de video vigilancia Nacional en Guinea Ecuatorial. The Chinese project title is 赤道几内亚国家视频监控项目 2. This CDB loan is not included in the database of Chinese loan commitments that SAIS-CARI released in 2020 and re-released in 2021. Nor is it included it in the China’s Overseas Development Finance Dataset that Boston University's Global Development Policy Center published in December 2020. 3. The face value of the loan is drawn from ‘Cuadro General de la deuda al 31/12/2019’ from the Caja Autónoma de Amortización (CAA) de la Deuda Pública within Equatorial Guinea’s Ministry of Finance and Budget. 4. Various Government of Equatorial Guinea sources refer to El Proyecto de Instalacion de un Sistema de Camaras de Videovigilancia en el Aeropuerto Internacional de Malabo, El Sistema de Videovigilacia de Guinea Ecuatorial (FE), Instalacion de videovigilancia en la Autovia Malabo-Sipopo, and Suministro e instalacion del sistema de Videovigilancia en el Palacio Presidencial. 5. A summary of the financing proposal from Huawei Technologies Co., Ltd. can be accessed via https://www.dropbox.com/scl/fi/xkhg9h6xv21ded40zmdny/huawei_technologies.pdf?rlkey=atedh5mr0qzjpttqhg35lf2kp&dl=0