China Eximbank provides $98.6 million loan for 46MW Hirgigo Power Plant Expansion Project (Linked to Record ID#30950)

China Eximbank provides $98.6 million loan for 46MW Hirgigo Power Plant Expansion Project In 2014, China Eximbank and the Government of Eritrea signed a $98.6 million concessional loan agreement for 46MW Hirgigo Power Plant Expansion Project.

The proceeds were used to finance a commercial contract with Shanghai Corporation for Foreign Economic & Technical Cooperation (SFECO), which was signed in July 2012.

This project involved the installation of two 23MW oil-fired power generation units at the Hirgigo Power Plant (محطة توليد الكهرباء), which is located near the port city of Massawa. The power plant was expected to supply electricity to Koka gold mine and Bluestar Cleaning Company. SFECO was the contractor responsible for project implementation.

It was originally envisaged that the project would reach completion by January 2014. However, construction did not commence until in May 2015 or conclude until May 2016.

A ceremony was held to turn on the 12K60MC-S low-speed diesel engines and hand over the project to the Eritrean Electric Corporation on May 12, 2016. Then, on November 15, 2017, the inauguration ceremony for the power plant took place. The Hirgigo Power Plant reportedly has the capacity to produce approximately 73% of Eritrea's total power needs.

The plant serves electricity users already connected to the grid, most of which are in Asmara or Massawa.

More specifically, the plant with benefit the large industrial users in these areas including SFECO—which operates the China Eximbank-financed Koka gold mine (captured via Record ID#30950).