Active Mixed AidData Chinese Aid

China Eximbank pledges $297.8 million loan for Phase 2 of Papalanto Power Gas Turbine Power Plant Project (Linked to Record ID#60641)

$297.75M USD

Funder	Export-Import Bank of China (China Eximbank)
Recipient Organization	Olorunsogo Generation Company Limited
Country	Nigeria
Start Date	Jan 01, 2005
End Date	Sep 14, 2029
Duration	9,022 days
Number of Grantees	1
Roles	Recipient
Data Source	AidData Chinese Aid
Grant ID	`173`

Grant Description

China Eximbank pledges $297.8 million loan for Phase 2 of Papalanto Power Gas Turbine Power Plant Project In 2005, China Eximbank agreed in principle to provide a $297.75 million loan for Phase 2 of the Papalanto Power Gas Turbine Power Plant Project.

The loan was reportedly to be collateralized with the proceeds of oil sales (through a contract between China National Petroleum Company and Nigeria's national oil company in which the latter agreed to sell 30,000 barrels of oil per day to the former).

The purpose of the second phase of this project was to generate 750 additional megawatts at the Papalanto Power Gas Turbine Power Plant. It involved the installation of four General Electric gas turbines and two steam turbines.

A special purpose vehicle — Olorunsogo Generation Company Limited — was established to manage the design, financing, and implementation of this independent power project (IPP).

Shandong No. 3 Electric Power Construction Corporation (SEPCO III), which was the EPC contractor that funded and implemented Phase 1 of the project (see Record ID#60641), was the contractor selected for project implementation. The second phase was ultimately completed in March 2015 and commissioned by former President Goodluck Jonathan.

However, it is unclear if China Eximbank’s loan pledge ever resulted in an official commitment.

📋 Staff Comments

This project is also known as the 750MW Olorunsogo II NIPP Project or Phase 2 of the Olorunsogo Power Plant Project.

📚 Sources & References

China in Nigeria: Power Myths & Realities, http://www.ide.go.jp/English/Data/Africa_file/Manualreport/cia_10.html
COUNTRY POWERS ITS WAY INTO NIGERIAN MARKETS.
CHINA TO BUILD 2 GAS-FUELED POWER PLANTS IN NIGERIA FOR USD 390 BLN.
Build Bridges: China's growing role as infrastructure financier in Africa
Annual Report and Statement of Accounts 2009
NIPP set for second phase restructuring, targets 4,000MW
NDPHC has completed Olorunsogo
Sapele
Geregu, other plants
Nigeria: Corruption investigation deepens into U.S.$16 Billion Power Probe
Guide to the Nigerian Power Sector
NATIONAL INTEGRATED POWER PLANT
FG hands over Olorunsogo Power to new owner
Nigeria: Sambo - FG Will Deliver On Stable Power Supply, http://www.sepcc.net/en/xm/hh2.asp, http://www.tribune.com.ng/sun/features/5186-papalanto-power-plant-phcn-chinese-firm-trade-blame-over-slow-take-off, http://news.biafranigeriaworld.com/archive/2004/sep/27/049.html, http://sweetcrudereports.com/2011/08/31/chinese-firm-blames-phcn-for-power-crisis/, http://bbs.dianjian.net/thread-4990-1-1.html
Building Bridges: China's Growing Role as Infrastructure Financier for Sub-Saharan Africa
China‟s Growing Relationship With Francophone Africa 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.