CDB provides loan for Malabo Turbogas Plant Expansion Project

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 Project ID#62258). Borrowings under this framework agreement are earmarked for electricity infrastructure construction activities and carry an interest rate of 6-month EURIBOR plus a 3.5% margin. The Vice President of the Hubei Branch of China Development Bank and the Equatorial Guinea’s Finance Minister signed the sovereign credit cooperation agreement. 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.

Additional details

1. The interest rate field is coded based on the following official source: https://www.dropbox.com/s/uvs8rioaee9gl0u/Primer-Semestre-2022.pdf?dl=0. AidData has estimated the all-in interest rate (2.972%) 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. 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.

Number of official sources

8

Number of total sources

13