Completed Mixed AidData Chinese Aid

CMEC provides $114.89 supplier credit for Phase 1 of 335MW Omotosho Power Plant Project (Linked to Record ID#62130)

$114.89M USD

Funder	Export-Import Bank of China (China Eximbank)
Recipient Organization	China Machinery Engineering Corporation (CMEC)
Country	Nigeria
Start Date	Mar 27, 2002
End Date	Jan 29, 2030
Duration	10,170 days
Number of Grantees	1
Roles	Recipient
Data Source	AidData Chinese Aid
Grant ID	`27948`

Grant Description

CMEC provides $114.89 supplier credit for Phase 1 of 335MW Omotosho Power Plant Project On March 27, 2002, China Machinery Engineering Corporation (CMEC, 中国机械设备工程股份有限公司) signed a $114.89 million supplier credit agreement with the Government of Nigeria for Phase 1 of the Omotosho Power Plant Project.

📋 Loan / Grant Terms

💰 Loan Amountcarried the following terms: 12 year maturity

📅 Maturity12 years

⏳ Grace Period6 years

💹 Interest Rate6%

It was collateralized against the cash proceeds from oil sales (under a renewable, annual offtake agreement between PetroChina and Nigerian National Petroleum Corporation, in which PetroChina agreed to purchase 30,000 barrels of crude oil a day from Nigerian National Petroleum Corporation).

In order to finance its supplier credit agreement with the Government of Nigeria, CMEC secured an export seller’s credit from China Eximbank that covered approximately 65% of the total cost ($170 million) of the project.

Phase 1 of 335MW Omotosho Power Plant Project involved the construction of a 335MW gas-fired power plant in Omotosho within Ondo State. Construction began in March 2005.

Then, on November 10, 2006, a project company (special purpose vehicle) called Omotosho Power Plc was established to manage the power plant. On April 17, 2007, the power plant was officially commissioned, adding 335 MW of electricity to the national grid.

It was originally envisaged that, upon completion, the power project would operate commercially and the proceeds from the sales of electricity would be used for the repayment of the supplier credit.

However, implementation delays, gas supply limitations, and insufficient funding at the Power Holding Company of Nigeria (PHCN) resulted in an accumulation of unpaid invoices to CMEC. The Government of Nigeria eventually defaulted on its repayment obligations under the supplier credit agreement. Nigeria’s Debt Management Office (DMO) later assumed responsibility for these obligations.

In 2013, Nigeria’s National Council on Privatisation (NCP) approved a debt-to-equity swap in which CMEC-Pacific would pay $217.5 million for the power plant and the Government of Nigeria would transfer ownership of Omotosho Power Plc to CMEC-Pacific. The DMO then reported in 2014 that it had fully repaid its outstanding obligations to CMEC.

📋 Staff Comments

The Chinese project title is 揽的尼日利亚翁多州奥莫托索燃气电厂项目 or 了翁多州（Ondo）的Omotoso电厂项目 or 奥莫托索 or 奥木托硕 or 欧莫托休. This project is also known as the Omotosho I Project or 335MW Omotosho Gas Power Plant Project or the Okitipupa Project.
Phase 2 of the Omotosho Power Plant Project was not funded by CMEC or China Eximbank.

📚 Sources & References

China in Nigeria: Power Myths & Realities
Omotosho I and II Power Station Nigeria
Nigeria's FG Cedes Olorunsogo Power Plant to Chinese Firm
Ngige was wrong on Obasanjo power plants
China's emerging role in Africa
Annual Report and Statement of Accounts 2009
Nigeria Energy Report
Nigerian Sustainable Energy For All Action Agenda (SE4ALL-AA)
Independent Power Projects in Sub-Saharan Africa: Lessons from Five Key Countries
尼日利亚总统为尼电项目一号燃机点火
尼日利亚总统为中国援建的燃气电站机组投产剪彩
中国驻拉各斯总领事郭崑出席拉各斯轻轨项目奠基仪式
China Machinery Engineering Corp Social Responsiblity Report 2013
EASTERN PROMISES: NEW DATA ON CHINESE LOANS IN AFRICA, 2000 TO 2014
CMEC-Pacific gets offer letter for Omotosho plantthe
尼日利亚奥贡州（Ogun）电厂推迟试运转
Nigeria: My Power Project Story
中国机械设备进出口公司承建的尼日利亚Omotosho电站全部竣工
据尼日利亚当地媒体《商业日报》报道，由中国机械设备进出口公司（CMEC）承建的Omotosho电站2期工程目前完工，标志着Omotosho电站全部竣工。
Operation and Maintenance of 335MW Generating Plant at Omotosho (Phase 1)
我机械设备公司承揽的尼燃气电厂项目举行点火发电仪式
CMEC-Pacific takes over Ondo power plant
Nigeria: FG Commissions Omotosho Power Plant
House Seeks Review
Cancellation of Chinese Loans, http://fredstanly.com/GOlosogoPP11.html, http://www.punchng.com/opinion/ngige-was-wrong-on-obasanjo-power-plants/
BU_PITCH_ENGLISH_2018
Building Bridges: China's Growing Role as Infrastructure Financier for Sub-Saharan Africa
Eastern Promises: New Data On Chinese Loans in Africa, 2000 to 2014, 2010 Annual Report Statement of Reports
A STUDY OF THE RESOURCES-FORINFRASTRUCTURE AGREEMENTS IN OIL-RICH MARKETS, 2017 Annual Report and Statement of Accounts, 2016 Report of the Annual National Debt Sustainability Analysis (DSA)
Actual External Debt Service Payments
January - December 2013
Actual External Debt Service Payments
January - December 2012
Actual External Debt Service Payments
January - December 2011
Actual External Debt Service Payments in 2010
Actual External Debt Service Payments in 2009
Modeling of gaseous pollutants dispersion of a fossil fuel-fired power plant at Omotosho
Ondo State
Nigeria 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.