China Eximbank provides $160 million buyer's credit loan for Blue Nile Sugar Plant Equipment Project (Linked to Record ID#57039)

China Eximbank provides $160 million buyer's credit loan for Blue Nile Sugar Plant Equipment Project On July 29, 2008, the Export-Import Bank of China and the Government of Sudan signed a $3 billion oil-backed master framework agreement (or line of credit) to finance various infrastructure projects (captured via Record ID#57039).

This resources-credit cooperation package is backed by future revenues from the sale of oil exports.

One of the subsidiary loans approved through this agreement in 2010 was a $160 million BCL agreement for the Blue Nile Sugar Plant Equipment Project.

The proceeds of the loan were to be used by the borrower to finance 100% of a commercial contract with China CAMC Engineering Co., Ltd.

The purpose of the project was to acquire and install mechanical and electrical equipment at the Blue Nile Sugar Plant in Sinnar (Sennar or سنار) State. The project also involved the installation of a thermal power station to supply power to the sugar mill. China CAMC Engineering Co., Ltd. was the contractor responsible for implementation.

The project reached the implementation stage, but it is unknown if or when it was completed.

There are some indications that the China Eximbank loan issued for the Blue Nile Sugar Plant Equipment Project may have underperformed vis-a-vis lender expectations.

According to Sudan’s Finance Minister Ali Mahmood Abdel-Rasool, China Eximbank suspended its financing for 11 projects in Sudan following the secession of South Sudan in July 2011, which triggered a major loss of oil revenue (a key source of collateral for China Eximbank loans).

Ali Mahmood Abdel-Rasool said at the time that the Government of Sudan had previously pledged oil revenues (worth 120,000 barrels per day) to China Eximbank as a source of collateral.

Then, on February 18, 2012, the Chinese Government announced that it had agreed to reschedule the outstanding debt obligations of the Government of Sudan by extending loan repayment periods by 5-years (as captured via Record ID#30421).

According to the External Debt Unit of the Central Bank of Sudan, the Government of Sudan's total arrears to Chinese creditors amounted to $3.864 billion ($2.608 billion in principal, $1.129 billion in interest, and $127 million in penalty interest) as of March 31, 2022.