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

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 52,795,025,919 loan agreement (captured via Project ID#52214) and a CFA 7,919,254,068.52 loan agreement (captured via Project ID#92228). The borrowing terms of the two loans are unknown. However, it is known that the CFA 52,795,025,919 loan was backed by a Sinosure credit insurance policy. The borrower was expected to use the proceeds of the CFA 52,795,025,919 loan to finance 87% 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 13% of the cost of the same commercial contract. The CFA 52,795,025,919 had achieved a 96% disbursement rate as of July 31, 2022. 3 disbursements (worth CFA 46,269,632,117.23) were made through the CFA 52,795,025,919 loan agreement: a CFA 11,266,380,848 disbursement on December 31, 2020, a CFA 28,851,997,584.23 disbursement on December 31, 2021, and a CFA 6,151,253,685 disbursement on July 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 is 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. This 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. 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 project’s originally scheduled completion date was December 31, 2021. However, the project is running 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).

Additional details

1. This project is also known as the Akoupé-Zeudji PK24 Industrial Park Project, the PK24 Industrial Park Project, and Phase 1 of Abidjan PK24 Industrial Zone Project. The French project title is Zone industrielle d’Akoupé-Zeudji PK24. The Chinese project title is PK24工业园 or 阿比让PK24工业园区一期项目. 2. There were previously negotiations with China Eximbank to mobilize $110 million, but according to the Chinese embassy in Cote d'Ivoire in 2019, the Bank of China ended up providing the commercial loan for Phase 1. 3. The Akoupé-Zeudji industrial zone is the fourth industrial zone in Abidjan, after those of Koumassi in the southern districts and Yopougon in the north, and the port area of Port-Bouët. 4. Afrieximbank is expected to fund another phase of the Abidjan PK24 Industrial Zone Project, which involved 112 hectares. 5. Some sources suggest that the loan agreement was signed in December 2018 rather than May 2019. This issued merits further investigation. 6. The AMP system identification number for the CFA 52,795,025,919 loan is 11200716832404. The AMP system identification number for the CFA 7,919,254,068.52 loan is 11200716832408. 7. The CHEC point of contact for the project is Mr. Li Mr. Li (ycli@chec.bj.cn). The project coordinator for the Ivorian government is OUATTARA YOUSSOUF OUATTARA YOUSSOUF (Oyb40@yahoo.fr).

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