Completed Mixed AidData Chinese Aid

Bank of China provides CFA 48.2 billion loan for Phase 1 of Abidjan PK24 Industrial Zone Project (Linked to Record ID#92228)

$80.37M USD

Funder	Bank of China (BOC)
Recipient Organization	Government of Côte d'Ivoire (Ivory Coast)
Country	Cote d'Ivoire
Start Date	May 22, 2019
End Date	Aug 10, 2032
Duration	4,829 days
Number of Grantees	1
Roles	Recipient
Data Source	AidData Chinese Aid
Grant ID	`52214`

Grant Description

Bank of China provides CFA 48.2 billion loan for Phase 1 of Abidjan PK24 Industrial Zone Project On October 5, 2015, Chinese and Ivorian government officials signed a framework cooperation agreement for the design, financing, and planning for Phase 1 of the Abidjan PK24 Industrial Zone Project.

Then, according to the Government of Côte d'Ivoire’s Aid Management Platform (AMP), Bank of China and the Government of Côte d'Ivoire signed two loan agreements on May 22, 2019 for Phase 1 of the Abidjan PK24 Industrial Zone Project: a CFA 48,222,898,915.45 loan agreement (captured via Record ID#52214) and a CFA 7,919,254,068.52 loan agreement (captured via Record ID#92228).

The borrowing terms of the two loans are unknown. However, it is known that the CFA 48,222,898,915.45 loan was backed by a Sinosure credit insurance policy.

The borrower was expected to use the proceeds of the CFA 48,222,898,915.45 loan to finance 85% of the cost of a commercial contract between China Harbour Engineering Co., Ltd. (CHEC) and the Government of Côte d'Ivoire, which was signed in September 2015.

It was expected to use the proceeds of the CFA 7,919,254,068.52 loan to finance 15% of the cost of the same commercial contract. The CFA 48,222,898,915.45 had achieved a 93% disbursement rate as of December 31, 2022.

Three disbursements (worth CFA 44,875,292,749.24) were made through the CFA 48,222,898,915.45 loan agreement: a CFA 11,266,380,848 disbursement on December 31, 2020, a CFA 17,664,768,298 disbursement on December 31, 2021, and a CFA 15,944,143,603.24 disbursement on December 31, 2022. The CFA 7,919,253,740.55 loan full disbursed (in a single tranche) on December 31, 2020.

The purpose of the project is to develop 127 hectares within the Akoupé-Zeudji industrial zone (park) — located in a northwestern suburb of Abidjan (Cocody Danga, Rue des Jasmins) — and provide the new area with modern and quality infrastructure (including drinking water supply, electricity, and wastewater treatment).

Construction works include roads, drainage, drinking water supply, wastewater treatment, and electricity. The industrial zone consists of 940 hectares in total and it is being built in multiple phases. CHEC was the EPC contractor responsible for the implementation of Phase 1.

The Ivorian Minister of Trade, Industry and Promotion Souleymane DIARRASSOUBA, China Communication Construction Company Deputy Managing Director Mr. Li Yi, and China Road and Bridge Corporation Vice President Mr. Wen Gang signed an implementation agreement with CHEC on December 14, 2018. Then, a formal groundbreaking ceremony took place on August 1, 2019.

However, construction did not begin until December 1, 2019. Construction was originally scheduled to last 18 months, but the COVID-19 pandemic led to implementation delays. The project had achieved a 49.36% completion rate as of 2021.

By April 2022, all site installation activities were complete, 98% of right-of-way clearance activities were complete, and 50% of earthworks were complete.

By April 2022,, the project’s electricity component had achieved a 10% completion rate; its drinking water supply component had achieved a 10% completion rate; and its wastewater treatment component had achieved a 6% completion rate. The first phase of the project was ultimately completed on December 23, 2022.

The project’s originally scheduled completion date was December 31, 2021.

It ran behind schedule because of land disputes (with approximately 500 local residents refusing to vacate the project site and accept CFA 300,000 of compensation per household) and problems related to the COVID-19 pandemic (high rates of absenteeism; team productivity reductions; Chinese employees being stranded in China due to the closure of the Ivorian borders; limited supplies of equipment and materials; fewer meetings; and less effective communication).

📋 Staff Comments

This project is also known as the Akoupé-Zeudji PK24 Industrial Park Project, the PK24 Industrial Park Project, and Phase 1 of Abidjan PK24 Industrial Zone Project. The French project title is Zone industrielle d’Akoupé-Zeudji PK24. The Chinese project title is PK24工业园 or 阿比让PK24工业园区一期项目.
There were previously negotiations with China Eximbank to mobilize $110 million, but according to the Chinese embassy in Cote d'Ivoire in 2019, the Bank of China ended up providing the commercial loan for Phase 1.
The Akoupé-Zeudji industrial zone is the fourth industrial zone in Abidjan, after those of Koumassi in the southern districts and Yopougon in the north, and the port area of Port-Bouët.
Afrieximbank is expected to fund another phase of the Abidjan PK24 Industrial Zone Project, which involved 112 hectares.
Some sources suggest that the loan agreement was signed in December 2018 rather than May 2019. This issued merits further investigation.
The AMP system identification number for the CFA 52,795,025,919 loan is 11200716832404. The AMP system identification number for the CFA 7,919,254,068.52 loan is 11200716832408.
The CHEC point of contact for the project is Mr. Li Mr. Li ([email protected]). The project coordinator for the Ivorian government is OUATTARA YOUSSOUF OUATTARA YOUSSOUF ([email protected]).
According to the World Bank's Debtor Reporting System (DRS), the weighted average grace period of all ‘private’ sector lending from all Chinese creditors to government and government-guaranteed borrowing institutions in Côte d'Ivoire was 2.5-years in 2019. AidData estimates the grace period of the Bank of China loan that supported Phase 1 of the Abidjan PK24 Industrial Zone Project by using this figure. See https://www.dropbox.com/scl/fi/i7f56vi0ix8drznpbaczg/Weighted-average-borrowing-terms-from-Chinese-Lenders-to-Ivory-Coast-April-2024-IDS-Data-Extraction.xlsx?rlkey=0uj6y8don6vdg39v28f1y4nwz&dl=0 9. According to the World Bank's Debtor Reporting System (DRS), the weighted average maturity of all ‘private’ sector lending from all Chinese creditors to government and government-guaranteed borrowing institutions in Côte d'Ivoire was 14.9999-years in 2019. AidData estimates the maturity of the Bank of China loan that supported Phase 1 of the Abidjan PK24 Industrial Zone Project by using this figure. See https://www.dropbox.com/scl/fi/i7f56vi0ix8drznpbaczg/Weighted-average-borrowing-terms-from-Chinese-Lenders-to-Ivory-Coast-April-2024-IDS-Data-Extraction.xlsx?rlkey=0uj6y8don6vdg39v28f1y4nwz&dl=0 10. According to the World Bank's Debtor Reporting System (DRS), the weighted average interest rate of all ‘private’ sector lending from all Chinese creditors to government and government-guaranteed borrowing institutions in Côte d'Ivoire was 2.7% in 2019. AidData estimates the interest rate of the Bank of China loan that supported Phase 1 of the Abidjan PK24 Industrial Zone Project by using this figure. See https://www.dropbox.com/scl/fi/i7f56vi0ix8drznpbaczg/Weighted-average-borrowing-terms-from-Chinese-Lenders-to-Ivory-Coast-April-2024-IDS-Data-Extraction.xlsx?rlkey=0uj6y8don6vdg39v28f1y4nwz&dl=0

📚 Sources & References

Cote d ' Ivoire : the Chinese have announced the construction of an industrial city of 5000 billion FCFA
Chinese investors find regional anchor in Cote d'Ivoire's main port
New industrial areas in Cote d'Ivoire attract fresh investment
唐卫斌大使出席 PK24工业园区框架合作协议签字仪式
唐卫斌大使会见中港湾阿比让港口项目部副总经理
驻科特迪瓦大使唐卫斌会见中国港湾公司唐桥梁总经理一行
科特迪瓦的机会
Extension de la zone industrielle de PK 24 Akoupé-Zeudji: le Ministre Souleymane DIARRASSOUBA signe une convention d’exécution des travaux de 127 ha avec le Groupe CHEC
MFA
驻科特迪瓦大使唐卫斌出席信誉水泥公司投产仪式
Extension de la zone industrielle de PK 24 Akoupé-Zeudji: le Ministre Souleymane DIARRASSOUBA signe une convention d’exécution des travaux de 127 ha avec le Groupe CHEC
Afriexim bank et China Eximbank finacent 2000 ha de zones industrial
IMF Country Report No. 16/383
驻科特迪瓦大使万黎出席PK24工业园一期项目开工仪式
中企承建科特迪瓦工业园开工, 2019 Ivory Coast guide for foreign investment cooperation
LAUNCHING OF WORKS FOR THE DEVELOPMENT OF A 127 HA PLOT IN THE INDUSTRIAL AREA OF AKOUPE ZEUDJI PK 24.
Infrastructures industrielles : Le Ministre Adama Koné lance les travaux additionnels d’aménagement de la Zone industrielle d’Akoupé-Zeudji PK24
Finance bill on the state budget for the year 2020
PARC INDUSTRIEL D’AKOUPE-ZEUDJI : DEUX CONVENTIONS DE FINANCEMENT SIGNEES ENTRE LE GOUVERNEMENT IVOIRIEN ET UNE BANQUE
Industrial infrastructure: Minister Adama Koné launches additional development works for the Akoupé-Zeudji PK24 industrial zone, 2018 Government of Cote d'Ivoire Bond Prospectus
E-PRESS ROOM COUNCIL OF MINISTERS OF 28-06-2017
Chinese enterprise starts industrial park construction in Ivory Coast
Ivory Coast Launch of works of the fourth industrial zone in Abidjan
Financement: Afreximbank accorde un financement de 150 milliards FCFA pour le développement du Parc industriel d'Abidjan
驻科特迪瓦大使万黎出席PK24工业园一期项目开工仪式
中企承建科特迪瓦工业园开工合同额约9700万美元
BTP CÔTE D’IVOIRE – CÔTE D’IVOIRE : LE CHINOIS CHEC A COMMENCÉ L’EXTENSION DE LA ZONE INDUSTRIELLE D’AKOUPÉ-ZEUDJI
Abidjan PK-24 Industrial Park
Afreximbank
Cote d’Ivoire Sign Agreement for Industrial Park Development
驻科特迪瓦大使接受科最大独立报纸书面采访
公开发行2021年可续期公司债券（第二期）募集说明书（面向专业投资者）
经济日报：中国港湾开建科特迪瓦工业园
ANNOUNCEMENT Corporate Social Responsibility Report of Bank of China Limited for 2019
Côte D’ivoire: Fifth Reviews Under the Arrangement Under the Extended Credit Facility and Under the Extended Arrangement Under the Extended Fund Facility
Ministère du Commerce et de l’Industrie
Extension de la zone industrielle de PK 24 Akoupé-Zeudji: le Ministre Souleymane DIARRASSOUBA signe une convention d’exécution des travaux de 127 ha avec le Groupe CHEC
PK 24 Akoupé-Zeudji: le Ministre Souleymane Diarrassouba fait le point des travaux en cours d’exécution à la nouvelle zone industrielle
Construction project of an industrial park in AKOUPE-ZEUDJI - PK24 _Credit export
Construction project of an industrial park in AKOUPE - ZEUDJI - PK24 _Commercial credit 15%
AMP April 2024 Record -- Projet de construction d'un parc industriel à AKOUPE-ZEUDJI - PK24 _Crédit export 85% (SINOSURE)
中企承建科特迪瓦PK24工业园一期项目竣工
鲁军参赞出席阿比让PK24工业园一期项目启动仪式
科特迪瓦总理出席！PK24工业园一期项目竣工 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.