Active Mixed AidData Chinese Aid

China Eximbank provides buyer’s credit loan for Ferlo Region Ecosystem Resilience Project (PREFERLO)

$265.6M USD

Funder	Export-Import Bank of China (China Eximbank)
Recipient Organization	Government of Senegal
Country	Senegal
Start Date	Oct 16, 2023
End Date	Jul 01, 2030
Duration	2,450 days
Number of Grantees	1
Roles	Recipient
Data Source	AidData Chinese Aid
Grant ID	`102931`

Grant Description

China Eximbank provides buyer’s credit loan for Ferlo Region Ecosystem Resilience Project (PREFERLO) In December 2021, Changjiang Institute of Survey, Planning, Design and Research (CISPDR) Corporation began a dialogue with Senegalese representatives about the Ferlo Region Ecosystem Resilience Project (PREFERLO).

Additional discussions took place between Senegal’s Ministry of Hydraulics and Sanitation, Senegal’s Office des Lacs et Cours d’Eau (OLAC), CIE, and CISPDR Corporation on March 15, 2022.

By that time, the project’s environmental impact assessment (EIA) was completed and approved by the Senegalese authorities and Sinosure had approved a buyer’s credit insurance policy for the project. A project feasibility study was also completed, discussed, and amended.

Engineers and technicians from the Chinese and Senegalese sides also conducted site visits to Richard Toll, Keur Momar Sarr and Mboula in the Ferlo area during calendar year 2022.

Then, on or around October 16, 2023, China Eximbank signed a buyer’s credit loan agreement -- through an EPC+F arrangement -- worth approximately $265,600,000 (CFA 166 billion) with the Government of Senegal for Phase 1 of the Ferlo Region Ecosystem Resilience Project (PREFERLO).

📋 Loan / Grant Terms

💰 Loan Amountare unknown

However, it is known that the loan is backed by a Sinosure credit insurance policy.

The purpose of the first phase of the project is to transfer 1.53 billion cubic meters per year of irrigated water from Lac de Guiers (Lake Guiers) to Linguère through a set of canals that measure 115 km in length.

The project scope includes (a) dredging and extension of the Taouey canal to Richard Toll to increase the water supply from Lac de Guiers (Lake Guiers) by 20%; (b) dredging, reprofiling and damming of the Bas Ferlo miner over 70 km from Keur Momar Sarr to Mboula; (c) construction of 2 pumping stations in Mboula to serve the 2 canals supplying the Vélingara Ferlo and Dahra areas; (d) construction of an open-air canal, 110 km long, to serve the Vélingara-Ferlo area via Linguère and Barkédji; (e) construction of a second open-air canal, 60 km long, to serve the Dahra area; (f) construction of a 35 MKVA photovoltaic solar power plant to ensure the energy supply of the 2 pumping stations; and (g) construction of artificial lakes, secondary canals to supply production areas, and crossing structures.

Changjiang Institute of Survey, Planning, Design and Research (CISPDR) Corporation and CIE are the contractors responsible for Phase 1 implementation. Their work will be supervised by Senegal’s Ministry of Hydraulics and Sanitation through OLAC.

On October 31, 2023, a partnership agreement was signed by OLAC and the Yangtze River Commission of the People's Republic of China.

📋 Staff Comments

The Chinese project title is 塞内加尔建设费尔洛地区开发及生态系统改善工程项目 or 的费尔洛生态修复项目 or 费尔洛生态系统恢复项目. The French project title is Le Projet de renforcement de la résilience des écosystèmes du Ferlo (PREFERLO) or Le Projet d’irrigation PREFERLO.
The only sources that refer to the face value of the loan characterize the face value as CFA 166 billion. However, given that it is exceedingly rare for Chinese state-owned banks to issue Sinosure-backed buyer’s credit loans that are denominated in local currencies (of host countries), AidData relies for the time being on the USD equivalent of CFA 166 billion in October 2023 ($265,600,000). This issue warrants further investigation.
The Chinese Loans to Africa (CLA) Database, managed by the Boston University Global Development Policy (GDP) Center, claims that the Chinese Government issued a $464.7883 million loan commitment for this project in 2022 (see https://www.bu.edu/gdp/files/2023/08/GCI_PB_019_CLA-2023-FIN.pdf). AidData has not independently corroborated this claim.
The estimated borrowing terms of the loan are drawn from pg. 22 of https://test.vitrine-virtuelle.com/wp-content/uploads/2023/09/Rapport_PREFERLO_OLAC.pdf. This issue warrants further investigation.
Evidence of an EPC+F arrangement is provided via https://www.pseau.org/outils/ouvrages/ps_eau_presentation_rac_2022_senegal_mea_2023.pdf6. The identity of the financier is provided by the following official

📚 Sources & References

https://budget.sec.gouv.sn/documents/public_download/5dc2c7e0-740c-4643-9408-be480a2a028a/telechargement Sources: 第三届“一带一路”国际合作高峰论坛务实合作项目清单
Projet de transfert d’eau vers le Ferlo : le Sénégal reçoit la visite de partenaires chinois
Saint-Louis – projet de renforcement de la résilience des écosystèmes (preferlo) : signature de convention entre l’OLAC et la Commission du Fleuve Yangtsé de Chine
Sénégal: Saint-Louis - Projet de renforcement de la résilience des écosystèmes (preferlo) - Signature de convention entre l'OLAC et la Commission du Fleuve Yangtsé de Chine
Projet de renforcement de la resilience des écosystemes du Ferlo (PREFERLO)
第三届“一带一路”国际合作高峰论坛务实合作项目清单
Project to Strengthen the Resilience of Ferlo Ecosystems (PREFERLO)
PREFERLO PROJET DE RENFORCEMENT DE LA RÉSILIENCE DES ÉCOSYSTÈMES DU FERLO
SENEGAL-HYDRAULIQUE / Louga : les travaux du PREFERLO vont démarrer en octobre prochain »au plus tard » (DG OLAC)
A New State of Lending: CHINESE LOANS TO AFRICA
FEASIBILITY STUDY FOR INCREASED ECO-SYSTEM RESILIENCE IN THE FERLO REGION (PREFERLO)
塞内加尔总理访问法国并希加强塞法合作
SENEGAL: Retours sur les performances du Secteur Eau et Assainissement
Aguas_y_saneamiento_en_Senegal.pdf
Rapport-annuel-de-suivi-duPNASAR-2020.pdf
BILAN REC - 2
Chinese Loans to Africa Database (2022 Update)
第三届“一带一路”国际合作高峰论坛务实合作项目清单 Loan applications and disbursements are still being received and processed as the projects continue to evolve. Ongoing monitoring and evaluation are in place to ensure project continuity.

All Grantees

Government of Senegal

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