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 (see ''中国水电建设集团国际工程有限公司与赤道几内亚政府签署2.57亿美元水电站建设项目合同'' and ''经济及市场环境'' and ''太平湾培训系统已接受赤道几内亚吉布洛水电站人员'' and ''Independent Power Projects in Sub-Saharan Africa'' p. 280 and ''テーマ別評価 「評価結果の横断的分析 エネルギー分野における 実践的なナレッジ教訓の抽出」報告書'' p. 53). 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 (see ''Equatorial Guinea, Djiploho Hydropower Plant''). It is the largest hydropower station in Equatorial Guinea and it has satisfied 90% of the country's continental electricity needs since its completion (see ''Chinese-built hydropower project to boost Equatorial Guinea economy: president'').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 (see ''Massive presence of the population at the inauguration of the Hydroelectric Plant of Djibloho'' and ''Equatorial Guinea Inaugurates New High-Capacity Power Plant In Djibloho'' and ''赤几吉博劳水电站举行竣工典礼””).This project is closely related to two other China Eximbank-financed projects: the Djibloho Power Transmission and Transformation Project (see Project ID#62082) and the Djibloho Regulating Reservoir Project (see Project ID#62127).

Additional details

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. 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. 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.AidData is not able to identify the face values of all subsidiary loans approved through the $2 billion oil-backed buyer’s credit credit facility agreement (captured in Project ID#484). Therefore, to effectively approximate the total amount of debt issued through the $2 billion oil-backed credit facility agreement and eliminate the risk of double-counting, AidData records the full value of the $2 billion oil-backed credit facility agreement but it does not record transaction amounts for the individual subsidiary loans approved through this facility agreement.

Number of official sources

30

Number of unofficial sources

11