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China Eximbank provides RMB 923.7 million government concessional loan for Addis Ababa Gerbi Dam Reservoir, Transmission Line and Treatment Plant Project
| Funder | Export-Import Bank of China (China Eximbank) |
|---|---|
| Recipient Organization | Government of Ethiopia |
| Country | Ethiopia |
| Start Date | Dec 27, 2016 |
| End Date | Dec 28, 2031 |
| Duration | 5,479 days |
| Number of Grantees | 1 |
| Roles | Recipient |
| Data Source | AidData Chinese Aid |
| Grant ID | 52976 |
Grant Description
China Eximbank provides RMB 923.7 million government concessional loan for Addis Ababa Gerbi Dam Reservoir, Transmission Line and Treatment Plant Project On December 27, 2016, China Eximbank and the Government of Ethiopia signed an RMB 923,712,744.71 (ETB 3,033,036,171) government concessional loan (GCL) agreement [CHINA EXIMBANK GCL No. (2016) 19 TOTAL NO. (589) 1420303052016111861] for the Addis Ababa Gerbi Dam Reservoir, Transmission Line and Treatment Plant Project.
The Ethiopian House of Representatives ratified the agreement on February 7, 2017. The proceeds of the loan were on-lent to Addis Ababa Water and Sewerage Authority (AAWSA).
The loan's first and last scheduled principal payment dates were September 21, 2024 and September 21, 2036, respectively. Its first and last scheduled interest payment dates were March 21, 2020 and September 21, 2036, respectively.
According to the Government of Ethiopia’s Aid Management Platform (AMP), the loan achieved a 39% disbursement rate, with China Eximbank making a single loan disbursement (worth ETB 1,185,030,917) on November 11, 2019. The project involves the construction of a dam across the Gerbi River in Oromia Regional State of Ethiopia.
More specifically, it involves the construction of a reservoir, pumping station, underground pipelines, barrage, canals, distribution system, iron gates and related facilities. China Gezhouba Group Company Limited (CGGC) is the contractor responsible for project implementation. Construction had still not commenced by early 2023.
However, in March 2023, Ethiopia's Finance Minister announced that China Eximbank had agreed to release loan disbursements worth $622 million for 14 projects, including the Addis Ababa Gerbi Dam Reservoir, Transmission Line and Treatment Plant Project.
There are some indications that the China Eximbank loan for the Addis Ababa Gerbi Dam Reservoir, Transmission Line and Treatment Plant Project may have financially underperformed vis-a-vis the original expectations of the lender.
According to the Government of Ethiopia’s Aid Management Platform, as of September 2019, ICBC suspended about $67 million worth of loan disbursements 'due to [the] cross-default situation of the country’ (see Record ID#58616).
Then, in August 2021, China Eximbank withheld $339 million loan disbursements for 12 projects and halted project implementation due to Government of Ethiopia’s rapidly dwindling foreign exchange reserves and debt sustainability challenges.
Then, after considerable delay, the G20 Common Framework (CF) creditor committee for Ethiopia convened in September 2021, with the French Government and the Chinese Government serving as co-chairs. The CF debt rescheduling talks were still ongoing in mid-2023.
Staff Comments
- This project is also known as the A.A. Gerbi Dam Reservoir, Transmission Line and Treatment Project and the Gerbi River Dam Project.
- This China Eximbank loan was not included in the database of Chinese loan commitments that SAIS-CARI released in 2020 and re-released in 2021. Nor was it included it in the Chinese Loans to Africa (CLA) Database — that is maintained by Boston University's Global Development Policy Center — as of August 2024.
- The system identification number for the project in the Government of Ethiopia’s Aid Management Platform (AMP) is 87143436111895.
- The loan identification number in the Government of Ethiopia’s Debt Management and Financial Analysis System (DMFAS) is 20930000 and the corresponding project name in DMFAS is ‘EBC 16/19-AA GERBI DAM RESRVOR’. See https://www.dropbox.com/scl/fi/je0aon75miofi6mt4q5q9/MOFED-Loan-Level-Data-on-Borrowing-Terms-and-Loan-Performance-September-2024_PUBLIC.xlsx?rlkey=murbb074v1px7g4njt0utzxnf&dl=0
Sources & References
- Infrastructure Financing Trends in Africa – 2017
- Ahead of recess, house endorses over USD 860 mln loan deals
- Public Sector Debt Statistical Bulletin 21
- Public Sector Debt Statistical Bulletin No. 20
- House Approves Ethiopian Youth Revolving Fund, 8 Loan Agreements.
- Addis Ababa Gerbi Dam Reservoir
- Transmission Line and Treatment Plant Project
- A PROCLAMATION TO RATIFY THE LOAN AGREEMENT BETWEEN THE FEDERAL DEMOCRATIC REPUBLIC OF ETHIOPIA AND THE EXPORT – IMPORT BANK OF CHINA
- AAWSA – Oromia Region Gerbi River Dam – Addis Ababa
- Public Sector Debt Statistical Bulletin No. 22 (2012 -…3 - 2016-17).pdf
- AAWSA to Select Design for Gerbi Water Project
- Export – Import Bank of China Loan Agreement for Addis Ababa Gerbi Dam Reservoir
- Transmission Line and Treatment Project Ratification Proclamation
- MOFED Loan-Level Data on Borrowing Terms and Loan Performance September 2024_PUBLIC
- China's EximBank approves $622 mln for Ethiopia projects, says state-affiliated media
- Infrastructure Development in Ethiopia and Its Impact on Economic Diplomacy With China
- List of Ethiopia- China Cooperation Major Projects from Ethiopia's Ministry of Finance September 2024 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.
All Grantees
Government of Ethiopia
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