Completed Mixed AidData Chinese Aid

China Eximbank provides $81 million export seller's credit to CWE for the 4th Phase of the Self-Help Electrification Project (SHEP)

$81M USD

Funder	Export-Import Bank of China (China Eximbank)
Recipient Organization	China International Water and Electrical Corporation (CWE)
Country	Ghana
Start Date	Nov 12, 2006
End Date	Oct 24, 2027
Duration	7,651 days
Number of Grantees	1
Roles	Recipient
Data Source	AidData Chinese Aid
Grant ID	`151`

Grant Description

China Eximbank provides $81 million export seller's credit to CWE for the 4th Phase of the Self-Help Electrification Project (SHEP) On November 12, 2006, the Government of Ghana and China International Water and Electric Corporation (CWE) signed an $81 million supplier credit agreement for the 4th Phase of the Self-Help Electrification Project (SHEP).

This credit has a 16.5-year maturity. Its final maturity date is July 7, 2023.

The loan’s (principal) amount outstanding was GHS 382,560,000 ($68,314,285) as of December 31, 2020 and GHS 272,400,000 ($52,384,615) as of December 31, 2021.

In order to finance its supplier credit agreement with the Government of Ghana, CWE secured an export seller’s credit from China Eximbank.

The purpose of the project was to connect 580 communities (villages and towns) in 8 regions (Ashanti, Central, Eastern, Volta, Western, Greater Accra, Brong Ahafo and Upper West regions) to the national electricity grid. CWE was the EPC contractor responsible for implementation. It signed an EPC contract in January 2006 worth $90 million.

The supplier credit was used to finance 90% of the cost of the EPC contract. The Government of Ghana was responsible for financing the other 10% of the cost of the EPC contract. Construction began on August 30, 2007. As of July 2010, the project was still in implementation. This project was eventually completed, but its exact date of completion is unknown.

📋 Staff Comments

This project is also known as the 4th Phase of the National Electrification Scheme (NES) or the Supply & Installation of Equipment SHEP 4 Project. The Chinese project title is 加纳政府农村电气化自助4期项目 or 农村电气化自助4期项目.
In the database of Chinese loan commitments that SAIS-CARI released in July 2020, it does not record a maturity for the supplier credit that supported this project. AidData records the maturity that is reported by Ghana’s Ministry of Finance and Economic Planning.
Although all sources agree the commitment year is 2006, CWE identifies the precise commitment date as November 22, 2006 rather than November 12, 2006. This discrepancy warrants further investigation.
The (principal) amounts outstanding are drawn from the Ghanaian Ministry of Finance’s Annual Public Debt Reports. These amounts are reported in GHS by the Ministry of Finance. AidData has estimated the USD amounts by applying the average GHS-to-USD exchange rate in 2020 (5.6-to-1) and the average GHS-to-USD exchange rate in 2021 (5.2-to-1).
2006028 is the ID assigned to the loan in the Ghanaian Auditor General Reports

📚 Sources & References

http://www.uneprisoe.org/upload/unep%20ris%C3%B8/powerpoint%20presentations/se4all%20workshop/abavana%20-%20electricity%20access%20progress%20in%20ghana.pptx
Parliament approves $162m China loan agreement for electricity supply equipment
The Budge Statement and Economic Policy of the Government of Ghana for 2009
Electricity Access Progress in GHANA, 580 rural communities to benefit from electrification project
中水电对外公司加纳电气化项目将供电500个村镇
Deputy General Manager Wang Yu inspected work in Ghana and signed loan agreement for electrification project
Build Bridges: China's growing role as infrastructure financier in Africa
The Budget Statement and Economic Policy of the Government of Ghana for 2010
Building Bridges: China's Growing Role as Infrastructure Financier for Sub-Saharan Africa, 2017-Annual-Debt-Management-Report, 【国际商报】“光明工程”架起中加友谊桥梁
三峡集团公司副总经理林初学一行考察加纳、苏丹市场
中水电公司承建电气化项目助力加纳“光明工程”
NATIONAL ELECTRIFICATION SCHEME (NES) Master Plan Review (2011-2020)
The Annual Debt Report for the 2021 Financial Year
The Annual Public Debt Report for the 2020 Financial Year
The Annual Public Debt Report for the 2022 Financial Year
Ministry Of Energy NATIONAL ELECTRIFICATION SCHEME (NES) Master Plan Review (2011-2020) 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

China International Water and Electrical Corporation (CWE)

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