China Eximbank provides $57.9 million buyer's credit for Drinking Water Supply System in Four Cities Project

On December 23, 2020, Burkina Faso's Council of Ministers approved the government's expenditure of $4,058,603.51 (XOF 2,183,593,345.99) for the improvement of the water supply system in four cities in southern Burkina Faso. This expenditure was authorized to cover 15% of the total cost ($62,038,653.72 or XOF 33,377,784,039.15) of a commercial contract between Burkina Faso's Ministry of Water and Sanitation CGCOC Group Co., Ltd. The remaining 85% of the commercial contract cost is being financed with a buyer's credit loan from China Eximbank. The borrowing terms of the loan are unknown. The purpose of the project is to strengthen the drinking water supply system in the cities of Bagré (Dirlakou), Bitou, Tenkodogo and Garango from the Bagré dam. Its ultimate goal is to to increase the availability of drinking water in South-central Burkina Faso. The water is expected to come from the Bagré dam reservoir. The project will also provide for the construction of a new drinking water treatment plant with a capacity of 25,000 m3/day at the Bagré dam, the construction of four new water towers with a total volume of 4,300 m3, the laying of a clean water distribution pipeline between the water plant and the four villages and the construction of a new water distribution center in Tenkodogo. CGCOC Group Co., Ltd. is the EPC contractor responsible for project implementation. It is working under the supervision of Burkina Faso's National Office for Water and Sanitation (ONEA). Construction was originally expected to commence in January 2021 and take 30 months to complete, with an estimated completion date in July 2023.

Additional details

1. The French project title is Le projet de renforcement du système d’approvisionnement en eau potable des villes de Bagré (Dirlakou), Bitou, Tenkodogo et Garango. The Chinese project title is 四城市供水. 2. No sources explicitly state that this is a buyer's credit loan. AidData assumes this is the case for the following reasons: (1) The loan is provided to a foreign borrower, (2) the loan is denominated in USD, (3) the face value of the loan is explicitly identified in an official source, and (4) the loan is used to finance a commercial contract with a Chinese company.

Number of official sources

3

Number of total sources

5