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Overview

CDB provides loan for Malabo Turbogas Plant Expansion Project (Linked to Record ID#62258)

Commitments (Constant USD, 2023)$5,937,739
Commitment Year•2021Country of Activity•Equatorial GuineaDirect Recipient Country of Incorporation•Equatorial GuineaSector•EnergyFlow Type•Loan

Status

Project lifecycle

Completion

Pipeline: PledgePipeline: CommitmentImplementationCompletion

Timeline

Key dates

Commitment date
Jan 1, 2021
Start (actual)
Jul 1, 2021
End (actual)
Nov 26, 2022
First repayment
Jan 1, 2024
Last repayment
Dec 30, 2030

Geospatial footprint

Map overview

Visualizes the AidData-provided feature geometry for this project.

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The purpose of the project was to conduct maintenance and expansion work at the 42MW Turbogas Power Plant in Malabo. More detailed locational information can be found at https://www.openstreetmap.org/way/291201869.

Stakeholders

Organizations involved in projects and activities supported by financial and in-kind transfers from Chinese government and state-owned entities

Ultimate beneficial owners

At least 25% host country ownership

Funding agencies

State-owned Policy Banks

  • China Development Bank (CDB)

Receiving agencies

Government Agencies

  • Government of Equatorial Guinea

Implementing agencies

State-owned companies

  • China Machinery Engineering Corporation (CMEC)

Loan desecription

CDB provides loan for Malabo Turbogas Plant Expansion Project

Grace period•3 yearsGrant element•31.3123%Interest rate (t₀)•2.974%Interest type•Variable Interest RateLoan tenor•6-month rateMaturity•10 years

Narrative

Full Description

Project narrative

On January 22, 2019, the Hubei Branch of China Development Bank (CDB) and the Government of Equatorial Guinea signed an EUR 200 million sovereign credit cooperation agreement (captured via Record ID#62258). Borrowings under this framework agreement are earmarked for electricity infrastructure construction activities and carry the following borrowing terms: a 10-year maturity, a 3-year grace period (until the first interest payment date on January 22, 2022), an interest rate of 6-month EURIBOR plus a 3.5% margin, a 0.3% commitment fee, and a 1.5% upfront (management) fee. CDB subsequently approved a loan for the Malabo Turbogas Plant Expansion Project. The face value of the loan is unknown. However, it is known that CDB made a $6,439,074.35 loan disbursement on June 24, 2022. The purpose of the project was to conduct maintenance and expansion work at the 42MW Turbogas Power Plant in Malabo. CMEC was the contractor responsible for implementation. The implementation of the project commenced on July 1, 2021 and the 42MW power plant was connected to the grid on November 26, 2022.

Staff comments

1. AidData has estimated the loan's all-in interest rate (2.972%) -- at the time it was issued -- by adding 3.5% to average 6-month EURIBOR in January 2021 (-0.528%). 2. The Spanish project title is Proyecto de Ampliación de la Planta Turbogas de Malabo or El proyecto de ampliación de la Planta de TurboGas or Ampliación de Planta Turbo gas de Malabo con un Grupo Turbogenerador de 42 MW or Ampliacion de la Planta Turbogas de Malabo. The Chinese project title is 赤道几内亚首都燃机电厂扩建项目 or 并网发电该项目 or or 马拉博燃机电 or 赤道几内亚马拉博燃机项目. 3. The face value of the loan is unknown. For the time being, AidData relies upon the value of the June 24, 2022 loan disbursement as a proxy. This issue warrants further investigation.