China Eximbank provides $300 million buyer’s credit facility agreement for unspecified development projects (Linked to Record ID#45047)

China Eximbank provides $300 million buyer’s credit facility agreement for unspecified development projects In November 2006, China Eximbank and the Government of Ethiopia’s Ministry of Finance and Economic Development signed a $500 million buyer’s credit facility agreement (互惠贷款) — also known as a master loan agreement, a master loan framework agreement, and a master facility agreement — for an unspecified set of development projects.

All of the subsidiary loans were secured with (i.e., collateralized against) Ethiopia's export receipts to China, which at the time primarily consisted of sesame seed export receipts.

The buyer’s credit facility agreement also required that all Ethiopian exports (export receipts) to China to be overseen by the Commercial Bank of Ethiopia (CBE), the country’s largest state-owned financial institution.

As a source of collateral, the borrower was required to maintain a minimum cash balance in a debt service reserve account (DSRA) at the CBE.

The cash balance of the DSRA (escrow account) was $284,368,041 as of June 30, 2011, $308,914,767 as of June 30, 2012, $300,000,000 as of June 30, 2016, $300,000,000 as of June 30, 2017, $300,000,000 (ETB 8,260,410,000) as of June 30, 2018, $300,000,000 as of June 30, 2019, ETB 10,599,600,000 as of June 30, 2020, ETB 8,058,726,059 as of June 30, 2021, ETB 10,722,750,953 as of June 30, 2022, and ETB 9,832,603,839 as of June 30, 2023. 16 subsidiary loans for 16 different projects were reportedly approved under the buyer’s credit facility agreement. 14 subsidiary loans for 14 different projects are known (and 2 subsidiary loans for two different projects are unknown): * Mugher Cement Expansion Project (Mugher Produce Line) Project (captured via Record ID#725) * Mugher Cement Expansion Project (Tatek Produce Line) Project (captured via Record ID#92136) * Neshe Multipurpose Civil Work Contract (captured via Record ID#92137) * Neshe Multipurpose Electro Mechanical Work Contract (captured via Record ID#92164) * Lot 1 Beles-Bahir Dar 400kV Power Transmission Project (captured via Record ID#59264) * Lot 2 Bahir Dar-Debre Markos-Addis Ababa 400kV Power Transmission Project (captured via Record ID#92174) * Lot 3A Bahir Dar-Debre Markos 400kV Power Transmission Turnkey Project (captured via Record ID#92177) * Lot 3B Debre Markos-Sululta 400kV Power Transmission Turnkey Project (captured via Record ID#92179) * FGG-2 230kV Finchaa-Ghedo-Gefersa Power Transmission Project (captured via Record ID#92182) * TIH-1 230kV Tekeze-Indeselasse-Humera Power Transmission Project (captured via Record ID#92185) * TIH-2 230kV Tekeze-Indeselasse-Humera Power Transmission Project (captured via Record ID#92186) * BM-1 230kV Bedele-Metu Power Transmission Project (captured via Record ID#92213) * BM-2 230kV Bedele-Metu Power Transmission Project (captured via Record ID#92214) * Almata-Combolcha-Kotebe Substations Equipment Supply Contract Project (captured via Record ID#92216) The $500 million buyer’s credit facility agreement was closely scrutinized by the International Monetary Fund (IMF) in 2010, 2012 and 2013 to ensure its consistency with the Government of Ethiopia's commitments under the IMF Articles of Agreement.

A second, $300 million buyer’s credit facility agreement between China Eximbank and Commercial Bank of Ethiopia was issued in April 2011 (as captured via Record ID#1456).