Bank of China provides CFA 7.9 billion loan for Phase 1 of Abidjan PK24 Industrial Zone Project (Linked to Record ID#52214)

Project narrative

On October 5, 2015, Chinese and Ivorian government officials signed a framework cooperation agreement for the design, financing, and planning for Phase 1 of the Abidjan PK24 Industrial Zone Project. Then, according to the Government of Côte d'Ivoire’s Aid Management Platform (AMP), Bank of China and the Government of Côte d'Ivoire signed two loan agreements on May 22, 2019 for Phase 1 of the Abidjan PK24 Industrial Zone Project: a CFA 48,222,898,915.45 loan agreement (captured via Record ID#52214) and a CFA 7,919,254,068.52 loan agreement (captured via Record ID#92228). The borrowing terms of the two loans are unknown. However, it is known that the CFA 48,222,898,915.45 loan was backed by a Sinosure credit insurance policy. The borrower was expected to use the proceeds of the CFA 48,222,898,915.45 loan to finance 85% of the cost of a commercial contract between China Harbour Engineering Co., Ltd. (CHEC) and the Government of Côte d'Ivoire, which was signed in September 2015. It was expected to use the proceeds of the CFA 7,919,254,068.52 loan to finance 15% of the cost of the same commercial contract. The CFA 48,222,898,915.45 had achieved a 93% disbursement rate as of December 31, 2022. Three disbursements (worth CFA 44,875,292,749.24) were made through the CFA 48,222,898,915.45 loan agreement: a CFA 11,266,380,848 disbursement on December 31, 2020, a CFA 17,664,768,298 disbursement on December 31, 2021, and a CFA 15,944,143,603.24 disbursement on December 31, 2022. The CFA 7,919,253,740.55 loan full disbursed (in a single tranche) on December 31, 2020. The purpose of the project is to develop 127 hectares within the Akoupé-Zeudji industrial zone (park) — located in a northwestern suburb of Abidjan (Cocody Danga, Rue des Jasmins) — and provide the new area with modern and quality infrastructure (including drinking water supply, electricity, and wastewater treatment). Construction works include roads, drainage, drinking water supply, wastewater treatment, and electricity. The industrial zone consists of 940 hectares in total and it is being built in multiple phases. CHEC was the EPC contractor responsible for the implementation of Phase 1. The Ivorian Minister of Trade, Industry and Promotion Souleymane DIARRASSOUBA, China Communication Construction Company Deputy Managing Director Mr. Li Yi, and China Road and Bridge Corporation Vice President Mr. Wen Gang signed an implementation agreement with CHEC on December 14, 2018. Then, a formal groundbreaking ceremony took place on August 1, 2019. However, construction did not begin until December 1, 2019. Construction was originally scheduled to last 18 months, but the COVID-19 pandemic led to implementation delays. The project had achieved a 49.36% completion rate as of 2021. By April 2022, all site installation activities were complete, 98% of right-of-way clearance activities were complete, and 50% of earthworks were complete. By April 2022,, the project’s electricity component had achieved a 10% completion rate; its drinking water supply component had achieved a 10% completion rate; and its wastewater treatment component had achieved a 6% completion rate. The first phase of the project was ultimately completed on December 23, 2022. The project’s originally scheduled completion date was December 31, 2021. It ran behind schedule because of land disputes (with approximately 500 local residents refusing to vacate the project site and accept CFA 300,000 of compensation per household) and problems related to the COVID-19 pandemic (high rates of absenteeism; team productivity reductions; Chinese employees being stranded in China due to the closure of the Ivorian borders; limited supplies of equipment and materials; fewer meetings; and less effective communication).