CDB provides loan for Phase 1 of Nouadhibou Fishing Port Project (Linked to Record ID#97754 and #97756)

Project narrative

On June 7, 2010, Hongdong Fishery Co., Ltd. (福建省福州宏东渔业股份有限公司 or 宏东渔业) — a subsidiary of China Poly Group Corporation Ltd (a Chinese state-owned military enterprise) — signed a long-term fishery cooperation agreement with the Mauritanian Ministry of Economic Affairs and Development, which granted the Chinese company an extraordinary set of maritime and land concessions (including tax and customs exemptions, permission to occupy an area of 60,000 square meters within a few hundred meters from the quay of the Autonomous Port of Nouadhibou, and the right to fish nearly 100 species of fish in a special economic zone). In 2010, Hongdong International (Mauritania) Fishery Development Co., Ltd. — a special purpose vehicle and wholly owned subsidiary of Hongdong Fishery Co., Ltd. — received a China Development Bank (CDB) loan worth approximately $25.2 million for Phase 1 (as captured via Record ID#97748). The loan was backed by a Sinosure credit insurance policy. Phase 1 had a total cost of $36 million. Then, in October 2016, China Eximbank issued an RMB 400 million loan to Hongdong International (Mauritania) Fishery Development Co., Ltd. for Phase 2 of the Nouadhibou Fishing Port Project (as captured via Record ID#97754). The borrowing terms of the 2016 China Eximbank loan are unknown. However, it is known that the borrower purchased a Sinosure credit insurance policy. Then, in 2018, China Eximbank issued an RMB 400 million loan to Hongdong International (Mauritania) Fishery Development Co., Ltd. for Phase 3 of the Nouadhibou Fishing Port Project (as captured via Record ID#97756). The borrowing terms of the 2018 China Eximbank loan are unknown. However, it is known that the borrower purchased a Sinosure credit insurance policy. The purpose of the Nouadhibou Fishing Port Project was to construct a new ore terminal in Nouadhibou with a capacity of 250,000 tons. The project scope involved the construction of an approach bridge, wharf platform, dock pier, tie pier, land earthwork, and auxiliary facilities. The main body of the wharf was to be constructed with high pile beams and slab structures that encompassed a 793-meter-long approach bridge, a 404-meter-long wharf platform, and 11 independent dock piers. Hongdong International (Mauritania) Fishery Development Co., Ltd. signed a $99,250,800 commercial (EPC) contract with PowerChina Harbour Co., Ltd. on February 4, 2010. Phase 1 commenced on April 6, 2010 and concluded on October 5, 2012. Phase 2 was reportedly completed, but its precise implementation start and end dates are unknown. Phase 3 was completed on March 4, 2021. The Nouadhibou Port eventually became the largest iron ore export wharf in West Africa. After going into service, the port exported more than 14 million tons of iron ore each year, significantly increasing the ore loading capacity of the National Industrial and Mining Company (SNIM).