CDB contributes to 121.8 billion syndicated buyer’s credit for Touba-Ouaninou-Saoula Section of Western Region Road Rehabilitation Project (linked to #88034)

On December 27, 2019, the Government of Côte d'Ivoire, the Industrial and Commercial Bank of China (ICBC), and China Development Bank signed a CFA 121,815,824,965.80 syndicated buyer’s credit (loan) agreement for the Western Region Road Rehabilitation Project. The borrowing terms of the loan are unknown. However, it is known that the borrower was expected to use the proceeds of the loan to partially finance a commercial contract between the Ministry of Equipment and Road Maintenance of Côte d’Ivoire and China Civil Engineering Group (Côte d’Ivoire) Co., Ltd. [中国土木工程集团（科特迪瓦）有限公司], which was signed in August 2018. This project captures the contribution of CDB to the loan. ICBC's contribution is covered in #88034. According to the Government of Côte d'Ivoire’s Aid Management Platform (AMP), the loan had achieved an 88% disbursement rate as of December 2022. Five disbursements worth CFA 107,286,359 048.66 took place in 2021 and 2022: a CFA 50,679,589,655.66 disbursement on December 31, 2021, a CFA 21,547,165,305 disbursement on March 31, 2022, a CFA 8,493,275,742 disbursement on June 30, 2022, a CFA 9,579,551,941 disbursement one September 30, 2022, and a CFA 16,986,776,405 on December 31, 2022. The purpose of the project is to asphalt a 49 km road segment between Touba and Sahouela/Saoula (via Ouaninou, Ferentela, Ganhoué, and Gbelor). China Civil Engineering Group (Côte d’Ivoire) Co., Ltd. [中国土木工程集团（科特迪瓦）有限公司] is the EPC contractor responsible for the implementation. On May 20, 2020, 87 Foton trucks arrived in Côte d'Ivoire to support project implementation. Then, in June 2020, a commencement ceremony for the Touba-Ouaninou-Saula road segment (projet du bitumage de la route Touba-Ouaninou-Carrefour Sahouela) took place. The project’s originally expected completion date is December 31, 2024.

Additional details

. This project is also known as 602 km Highway Project. The Chinese project title for Phase II is 651公里公路项目二期 or 651公里公路项目二期——瓦尼努至萨乌拉段 or 科特迪瓦西部地区651公里公路项目 or 科特迪瓦651公路项目 or 科特迪瓦西部地区公路改造项目(一期)项目 or 651公里公路网改造项目 or 科特迪瓦西部地区651公里公路项目 or 科特迪瓦651公里公路项目. The French project title is 651 kilomètres de route dans l’ouest de la Côte d’Ivoire or Travaux de renforcement de 602 km de route dans la région ouest et bitumage de 49 km sur l'axe or Travaux de renforcement de 602 km de routes dans l'Ouset et bitumage de l'axe Touba - Ouaninou - Férentela - Ganhoué - Gbélo - Saoula or Projet de construction de 602 Km de route or Travaux de renforcement de 602 km de routes à l’Ouest et de bitumage de 49 km sur l'axe Touba-Ouaninou-Saoula : Travaux de bitumage de la route Touba-Ouaninou-Saoula. 2. This project is being undertaken in two phases. It appears that ICBC is financing both phases; however, it is unclear if it issued one or two loans for the project (see https://www.dropbox.com/s/si8cj5fqzs90hv6/Hallam%20Chow%20_%20People%20_%20Mayer%20Brown.pdf?dl=0). This issue merits further investigation. One official source (https://www.dropbox.com/s/1naeus34augx3q6/Matrice%20de%20suivi%20de%20projet_Canevas%20ROUTES%20.PM_au%2028%2006%202022_VF.pdf?dl=0) suggests that the two phases are (a) Reinforcement works of 602 km of roads in the West and tarring of 49 km on the Touba-Ouaninou-Saoula axis: Asphalting works on the Touba-Ouaninou-Saoula road [Travaux de renforcement de 602 km de routes à l’Ouest et de bitumage de 49 km sur l'axe Touba-Ouaninou-Saoula : Travaux de bitumage de la route Touba-Ouaninou-Saoula]; and (b) Reinforcement works of 602 km of Western roads: Daloa-Duekoué-Man-Danané-Zouan Hounien section [Travaux de renforcement de 602 km de routes à l’Ouest : section Daloa-Duekoué-Man - Danané-Zouan Hounien]. 3. One source (https://www.dropbox.com/s/si8cj5fqzs90hv6/Hallam%20Chow%20_%20People%20_%20Mayer%20Brown.pdf?dl=0) indicates that the Government of Côte d'Ivoire issued a sovereign guarantee for an ICBC loan to support the implementation of the project. This suggest that the Government of Côte d'Ivoire may not be the borrower. However, the Government of Côte d'Ivoire’s Aid Management Platform (AMP) strongly suggests that the Government of Côte d'Ivoire is the borrower. This issue merits further investigation. 4. One source suggests that one or more international banks (from outside of China) may have participated in the lending syndicate. This issue also merits further investigation. 5. The French translation of the 2018 loan agreement that was signed is ‘Convention de financement et d'exécution des travaux de renforcement de 602 km de route dans la région ouest et bitumage de 49 km sur l'axe’ (see https://www.marchespublics.ci/node?e0econvee8c2e0018322436_mkh=&page=1). 6. This loan is not included in the Chinese Loans to Africa (CLA) database that is managed by the Global Development Policy Center at Boston University and SAIS-CARI. 7. The AMP system identification number for the loan is 1120071334086. 8. The AMP identifies the loan commitment date as December 27, 2019 rather than June 28, 2019. This issue merits further investigation. 9. The purpose of the Western Region Road Rehabilitation Project as a whole, which is being implemented in two separate phases, is to renovate six existing asphalt roads with a total length of 602 kilometers, and a 49-kilometer new asphalt road. Specific road segments being supported through the project include a 70 km road segment between Biankouma and Sipilou, a 100 km road segment from Man to Hounien (via Zouan), a 200 km road segment from Daloa to Duékoué, a 277 km between Man and Odienné, and a 49 km road segment between Touba and Sahouela (via Ouaninou, Ferentela, Ganhoué, and Gbelor). More detailed locational information can be found at: https://www.openstreetmap.org/directions?engine=graphhopper_car&route=7.7383%2C-7.6128%3B7.8630%2C-8.1033#map=11/7.8013/-7.8581, https://www.openstreetmap.org/directions?engine=graphhopper_car&route=7.4091%2C-7.5502%3B6.9189%2C-8.2088#map=11/7.1646/-7.8799, https://www.openstreetmap.org/directions?engine=graphhopper_car&route=6.8767%2C-6.4516%3B6.7140%2C-7.4252#map=10/6.7989/-6.9337, https://www.openstreetmap.org/directions?engine=graphhopper_car&route=7.4091%2C-7.5502%3B9.5044%2C-7.5619#map=8/8.459/-7.586, https://www.openstreetmap.org/directions?engine=graphhopper_car&route=9.2145%2C-8.0722%3B9.4978%2C-7.5641 10. A commencement ceremony for the 100 km Man-Zouan Hounien road segment (also known as la route Man-Danané-Zouan-Hounien) took place on November 22, 2019. A commencement ceremony for the 70 km Biankouma-Sipilou road segment took place on June 6, 2020. 11. The exact size of ICBC and CDB’s respective financial contributions to the CFA 121.8 billion syndicated buyer’s credit are unknown. For the time being, AidData assumes that both members of the lending syndicate contributed equal amounts (CFA 60907912482.9).

Number of official sources

7

Number of total sources

29