China Eximbank provides buyer's credit loan for Phase 2 of Diamniadio Integrated Industrial Park Project

Project narrative

In 2020, the Sichuan Branch of China Eximbank and the Government of Senegal's Ministry of Industry signed a buyer's credit loan (BCL) agreement worth approximately $95,795,000 (CFA 60 billion) for Phase 2 of the Diamniadio Integrated Industrial Park Project. The estimated borrowing terms of the loan are as follows: 20.4-year maturity, 7.9-year maturity, and 2% interest rate. However, it is known that the borrower is expected to use the loan proceeds to partially finance a $112,700,000 commercial contract with Sichuan Road and Bridge Group (SRBG) and CGCOC Group Co., Ltd. (CGCOC), which was signed in November 2019. As of June 20, 2022, a total of XOF 20,567,241,067 of the loan had been disbursed, XOF 1,118,387,067 over what was originally committed. The purpose of the project is to build a 40-hectare industrial park about 26 km east of Dakar — in the new settlement of Diamniadio. Phase 2 involves 235,000 square meters of hangar space, a building and a logistics park. Upon completion of Phase 2, it is expected that the industrial park will have 17 hangars that can house companies as well as a housing estate accommodate up to 1,400 people with all of the necessary urban amenities. Sichuan Road and Bridge Group (SRBG) and CGCOC Group Co., Ltd. (CGCOC) are the contractors responsible for Phase 2 implementation. On November 22, 2018, the first phase of Diamniadio integrated industrial park was officially inaugurated. At the end of the first phase, the industrial park, which covered 13 hectares, was functioning and fully occupied. It contained three Type-A hangars with a total area of 7,200 square meters, a Type-B hangar with a total area of 4,910 square meters, and an administration building with a total area of 4,910 square meters. The industrial park, which was designated as a special economic zone (SEZ), was originally expected to create more than 23,000 jobs by 2023. Several industrial and service firms already established themselves at the park by the end of the project’s first phase, including C&H Garments, a Chinese company that specializes in the fabrication of sports equipment. Then, on June 18, 2019 and June 19, 2019, a formal foundation-laying ceremony took place for Phase 2. Then, in November 2020, a preliminary working group was organized to carry out geological survey research for the project. A project implementation team mobilized on-site in June 2021. Then, on July 6, 2021, a former commencement ceremony for Phase 2 took place. Construction commenced in December 2021 and ended on December 5, 2023. The project was originally scheduled to reach completion within 24 months (December 2023).