China Eximbank provides $218.45 million buyer’s credit loan for 120MW Djibloho Hydropower Station Project (Linked to Project ID#62082, #62127, #484)

In 2006, China Eximbank and the Government of Equatorial Guinea signed a $2 billion oil-backed buyer’s credit facility agreement for various infrastructure projects (captured in Project ID#484). All subsidiary loans approved under this facility agreement carry the following terms: a 5.5% interest rate, 5 year maturity, and 2 year grace period. Then, in 2007, China Eximbank and the Government of Equatorial Guinea signed a $218.45 million subsidiary buyer’s credit loan agreement for the 120MW Djibloho Hydropower Station Project. The proceeds of the loan were used by the borrower to finance 85% of a $257 million commercial (EPC) contract between Sinohydro Corporation and the Ministry of Mining, Industry and Energy of Equatorial Guinea, which was signed on March 13, 2007. The project involved the construction of a 120 MW hydropower station (with four 30 MW generators) and a 22-meter high and 274-meter long concrete gravity dam, which is located in the middle of the Wele-Nzas (or Wele) River near Djibloho. It is the largest hydropower station in Equatorial Guinea and it has satisfied 90% of the country's continental electricity needs since its completion. Yellow River Engineering Consulting Co. was the contractor responsible for project design, and Sinohydro Corporation was the contractor responsible for project implementation. CMEC also appears to have been involved in the project (mostly likely as a subcontractor). Construction began on March 15, 2008. Then, in December 2008, a a foundation-laying ceremony took project. Power generation began on October 15, 2011 and an inauguration ceremony was held on October 10, 2012. This project is closely related to two other China Eximbank-financed projects: the Djibloho Power Transmission and Transformation Project (captured via Project ID#62082) and the Djibloho Regulating Reservoir Project (captured via Project ID#62127).

Additional details

1. This project is also known as the 120MW Djiploho Hydropower Station Project or the 120MW Giblau Hydropower Station Project. The Spanish project title is Centrale hydroélectrique de Djibloho. 2. The Chinese project title is 中水电承建的吉布劳水电站 or 赤道几内亚吉布洛水电站项目. 3. Boston University's Global Development Policy Center and SAIS-CARI identify the face value of this loan as $257 million. However, this amount corresponds to the value of the commercial contract. According to Sinohydro, China Eximbank provided a buyer’s credit loan that financed 85% of the cost of the commercial contract. Therefore, AidData estimates the face value of the loan as $218.45 million.

Number of official sources

30

Number of total sources

41