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China Development Bank provides $1.5 billion master lending facility (Tranche A) for oil, gas, agriculture, and infrastructure projects (Linked to Record ID#28056, #58586, #30578, #60039, #73140, #85282)
| Funder | China Development Bank (CDB) |
|---|---|
| Recipient Organization | Government of Ghana |
| Country | Ghana |
| Start Date | Jan 01, 2011 |
| End Date | Jul 31, 2028 |
| Duration | 6,421 days |
| Number of Grantees | 1 |
| Roles | Recipient |
| Data Source | AidData Chinese Aid |
| Grant ID | 2034 |
Grant Description
China Development Bank provides $1.5 billion master lending facility (Tranche A) for oil, gas, agriculture, and infrastructure projects On December 8, 2009, China Development Bank (CDB) pledged to provide the Government of Ghana with a $3 billion loan for package of projects, the majority of which would be related to infrastructural development.
Then, on December 16, 2011, China Development Bank and the Government of Ghana signed a $3 billion master facility agreement. This agreement established two lending facilities: Tranche A and Tranche B.
The borrower is responsible for repaying CDB every six months at the end of each interest period. Record ID#2034 captures Tranche A. Tranche B is captured via Record ID#85282.
Also, under the terms of the master facility agreement, the borrower is required to maintain a balance of 1.5 times the repayment amount (for each six month cycle) in a designated “Debt Service Reserve Account” at all times.
Additionally, to facilitate repayment of the loan principal and interest, the Ghana National Petroleum Corporation (GNPC) and the UNIPEC Asia Company Limited (UNIPEC Asia) signed an offtaker agreement on February 1, 2012 for the sale and purchase of crude oil.
Under the terms of this agreement, GNPC agreed to supply and sell 13,000 barrels of crude oil from Jubilee Field each day to UNIPEC Asia over a 15.5-year period.
The proceeds from these oil sales were then deposited into a special account to facilitate loan repayment and provide a source of collateral.
The parties agreed that the term of the offtaker agreement should extend beyond the repayment period of the loan to allow CDB to be fully repaid if necessary.
The projects that were initially identified as eligible for funding through Tranche A included the Western Corridor Renewal Project, the Western Corridor Infrastructure Renewal Project, the Sekondi Free Zone Project, Accra Plains Irrigation Project Phase 1, Coastal Fishing Landing Sites Project, Eastern Corridor Multi-Modal Transportation Project.
Projects that were initially identified as eligible for funding through Tranche B included Western Corridor Gas Infrastructure Project, Takoradi Petroleum Terminal Project, Western Corridor 'Oil Enclave' Toll Road Redevelopment Project, ICT Enhanced Surveillance Project (also known as Integrated National Security Communications Enhancement Project), the Accra Intelligent Traffic Management Project, and the SME Projects Incubation Facility.
Under the terms of the master facility agreement, subsidiary loan agreements must be negotiated to secure financial support for any given project.
On June 13, 2012, China Development Bank and the Government of Ghana signed the first subsidiary loan agreement worth $850 million — using the Tranche B lending facility — for the Western Corridor Gas Infrastructure Development Project (WCGIDP) (captured via Record ID#58586).
In April 2013, China Development Bank and the Government of Ghana signed the second subsidiary loan agreement worth $150 million — using the Tranche B lending facility — for the ICT Enhanced Surveillance Project. Then, in mid-2014, the Government of Ghana sought to cap the value of the master facility agreement at $1.5 billion.
However, the parties reportedly came to an impasse when CDB requested an additional 2,000 barrels of oil per day beyond the original 13,000 barrels specified in the original off-taker agreement. According to Ghana’s Vice President, Dr. Mahamudu Bawumia, the master facility agreement was 'unfrozen' and reactivated in 2017.
Then, in 2018, China Development Bank and the Government of Ghana signed the third subsidiary loan agreement worth $185,570,000 — using the Tranche B lending facility — for the Coastal Fishing Landing Sites Project.
This project was originally identified as eligible for lending through the Tranche A facility; however, the Government of Ghana and CDB agreed to fund it through the Tranche B facility and shorten the maturity of the loan to ensure that the off-taker agreement did not extend beyond its current term.
In 2018, China Development Bank and the Government of Ghana also signed the fourth subsidiary loan agreement worth $210,660,000 — using the Tranche B lending facility — for the Accra Intelligent Traffic Management Project.
Record ID#58586 captures the $850 million subsidiary loan agreement for the Western Corridor Gas Infrastructure Development Project (WCGIDP).
Record ID#60039 captures the $150 million subsidiary loan agreement for the ICT Enhanced Surveillance Project (also known as Integrated National Security Communications Enhancement Project. Record ID#30578 captures the $185,570,000 subsidiary loan agreement for the Coastal Fishing Landing Sites Project.
Record ID#73140 captures the $210,660,000 million subsidiary loan agreement for the Accra Intelligent Traffic Management Project.
Staff Comments
- For loan and debt rescheduling records with variable interest rates, AidData calculates the all-in interest rate at T0 based on the reference rate (such as LIBOR or EURIBOR) on the loan start date, plus any known margin. Please see the methodology for additional details.
- The February 1, 2012 offtaker agreement between the Ghana National Petroleum Corporation (GNPC) and the UNIPEC Asia Company Limited (UNIPEC Asia) can be accessed in its entirety via https://www.dropbox.com/scl/fi/9m0s7pxnqw4xsat55uezs/GNPC-UNIPEC-Signed-Agreement0001.pdf?rlkey=gwx6ajv1i4fbk3ff87nlu5t1t&dl=0
Sources & References
- http://vibeghana.com/2010/09/22/ghana-gets-another-10-billion-chinese-loan/
- China National Petroleum Ghana open line for project financing, http://news.xinhuanet.com/world/2010-11/16/c_12779324.htm, http://www.chinaafricarealstory.com/2010/11/ghanas-new-china-deals-whats-real-story.html, http://www.newstimeafrica.com/archives/25036, http://www.modernghana.com/news/404269/1/china-development-bank-will-release-all-3-billion-.html
- Ghana Lawmakers Approve $3 Bln Loan With China Development Bank
- Majority Voice Seals U.S. $3 Billion Chinese Deal
- Ghana Gas sees early pay-off of China loan, http://www.ghanatoghana.com/ghanas-1-2b-gas-infrastructure-to-be-relocated-from-bonyere-to-atuabo/, http://www.htsc.com.cn/htnews/news.jsp?docId=15026842, http://www.douban.com/group/topic/15399706/, http://relooney.fatcow.com/SI_FAO-Africa-2012/Oxford-Ghana_4.pdf
- UPDATE 1-Ghana taps China loan for $2.85 billion road project, http://www.modernghana.com/news/349046/1/imf-to-scrutinize-3bn-chinese-loan.html, http://omgghana.com/parliament-approves-850m-loan-gas-infrastructure-project/
- Ghana Loan Extends China's African Reach, http://gas.in-en.com/html/gas-17401740231105276.html
- Ghana Secures $800 Mln Chinese Loan For Gas Infrastructure, http://web.ebscohost.com/ehost/pdfviewer/pdfviewer?sid=ff847bae-a2e3-4194-a879-c216fe4137d3%40sessionmgr198&vid=2&hid=121, http://www.mofep.gov.gh/sites/default/files/reports/CDB_Loan_Summary_050112.pdf, http://search.proquest.com.gate2.library.lse.ac.uk/docview/1024526540/13E9E9936935407C09A/7?accountid=9630, http://news.xinhuanet.com/english/africa/2013-04/27/c_124638021.htm, 3 billion Chinese loan disbursements recommence next month
- Ghana opts for bridge financing as Chinese funds delay for gas project
- Parliament approves amendment to 3 Billion US Dollar term Loan Facility between G of G and CDB
- China Gives Development Package To Ghana
- US$3.0 BILLION TERM LOAN FACILITY BETWEEN THE REPUBLIC OF GHANA AND THE CHINA DEVELOPMENT BANK (CDB) TO FINANCE INFRASTRUCTURE DEVELOPMENT PROJECTS UNDER THE GHANA SHARED GROWTH AND DEVELOPMENT AGENDA (GSGDA)
- Work on Ghana gas project on course: President Mahama
- Risky Business: Is China Wavering in Africa?
- CDB loan: To be or not to be
- Ghana signs $13 bn in Chinese loan deals
- Bartering Globalization: China’s Commodity- backed Finance in Africa and Latin America
- Assessing the Chinese Influence in Ghana Angola, and Zimbabwe: The Impact of Politics
- Partners, and Petro
- Ghana 2011
- Ghana will not draw second half of $3 billion China loan- govt
- Choosing China: Ghana’s $3 Billion Loan Decision
- 高文志参赞到塔克拉底调研
- China Unfreezes Remainder of $3b Loan to Ghana Bawumia
- GOVT TO BUILD 10 COASTAL FISHING PORTS
- FISH LANDING SITES, “RAILWAY SECTOR BEING RESURRECTED” – PRESIDENT AKUFO-ADDO
- Choosing China: Ghana's $3 billion loan decision
- Beyond Fuelling The Dragon: Locating African Agency in Africa-China Relations
- China Development Bank's $3 Billion Line of Credit in Ghana: Better than the World Bank?
- US $3 BILLION TERM LOAN FACILITY AGREEMENT BETWEEN CHINA DEVELOPMENT BANK CORPORATION AND GOVERNMENT OF GHANA, http://global.factiva.com/aa/?ref=LBA0000020101103e6b30018v&pp=1&fcpil=en&napc=S&sa_from=, http://global.factiva.com/aa/?ref=AER0000020110812e78c0001o&pp=1&fcpil=en&napc=S&sa_from=
- Global Medium Term Note Programme Base Prospectus
- China’s Relations with West African Countries
- The Budget Statement and Economic Policy of the Government of Ghana for the 2020 Financial Year
- Report of the Joint Committee on Finance and Mines and Energy on the Subsidiary Agreement in relation to the Western Corridor Petroleum Terminal Project
- Report of the Joint Committee on Finance and Mines and Energy on the Offtaker Agreement between the Ghana National Petroleum Corporation (GNPC) and Unipec Asia Company Limited
- REPORT OF THE AUDITOR-GENERAL ON THE PUBLIC ACCOUNTS OF GHANA (GENERAL GOVERNMENT) FOR THE YEAR ENDED 31 DECEMBER 2022
- REPORT OF THE AUDITOR – GENERAL ON THE PUBLIC ACCOUNTS (CENTRAL GOVERNMENT) FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2018
- STATEMENT OF RECEIPTS AND PAYMENTS FOR THE QUARTER ENDED SEPTEMBER 30, 2017
- STATEMENT OF RECEIPTS AND PAYMENTS FOR THE MONTH ENDED JUNE 30, 201
- REPORT OF THE AUDITOR-GENERAL THE PUBLIC ACCOUNTS OF GHANA (CONSOLIDATED FUND) FOR THE YEAY ENDED 31 DECEMBER 2015, https://web.archive.org/web/20240616120555/https://www.cagd.gov.gh/wp-content/uploads/2020/08/2016-Fourth-Quarter_NOV_DRAFT_2016_final.pdf
- REPORT OF THE AUDITOR – GENERAL ON THE CONSOLIDATED ANNUAL ACCOUNTS OF GOVERNMENT FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2017
- US$3 BILLION TERM LOAN FACILITY AGREEMENT BETWEEN CHINA DEVELOPMENT BANK (CDB) AND GOVERNEMENT OF GHANA (GOG) – SUMMARY
- Majority voice seals $3bn Chinese deal
- Debates of 03 December 2018
- Report of the Finance Committee
- REPORT OF THE AUDITOR-GENERAL THE PUBLIC ACCOUNTS OF GHANA (CONSOLIDATED FUND) FOR THE YEAR ENDED 31 DECEMBER 2014 REPORT OF THE AUDITOR-GENERAL THE PUBLIC ACCOUNTS OF GHANA REPORT OF THE AUDITOR-GENERAL (CONSOLIDATED FUND) FOR THE YEAR ENDED 31 DECEMBER 2014
- REPORT OF THE AUDITOR – GENERAL ON THE PUBLIC ACCOUNTS OF GHANA (CONSOLIDATED FUND) FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2016, 2019 Government of Ghana Bond Prospectus 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.
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