Completed Development AidData Chinese Aid

China Eximbank provides RMB 304 million government concessional loan for the 30MW Wadadli Power Plant Construction Project (Linked to Record ID#54574)

¥300M RMB

Funder	Export-Import Bank of China (China Eximbank)
Recipient Organization	Government of Antigua and Barbuda
Country	Antigua and Barbuda
Start Date	Jun 26, 2008
End Date	May 25, 2032
Duration	8,734 days
Number of Grantees	1
Roles	Recipient
Data Source	AidData Chinese Aid
Grant ID	`54572`

Grant Description

China Eximbank provides RMB 304 million government concessional loan for the 30MW Wadadli Power Plant Construction Project During the second half of 2006, the Prime Minister of Antigua and Barbuda, and others on behalf of the Government of Antigua and Barbuda and Antigua Public Utilities Authority (APUA), reportedly began discussions with Beijing Construction Engineering Group Co.

Ltd (BCEG) about the possibility installing power generators in Antigua. These negotiations resulted in a memorandum of understanding (MOU) between APUA and BCEG signed on November 11, 2006.

Then, on May 21, 2008, the Chinese Government and the Government of Antigua and Barbuda signed a preferential loan framework agreement for the 30MW Wadadli Power Plant Construction Project.

Then, on June 26, 2008, China Eximbank and the Government of Antigua and Barbuda signed an RMB 300,000,000 (EC$ 117,690,000) government concessional loan (GCL) agreement [CHINA EXIMBANK GCL No. (2008) 15 TOTAL NO. (234)] for the 30MW Wadadli Power Plant Construction Project.

📋 Loan / Grant Terms

📅 Maturity20.75 years

⏳ Grace Period5 years

💹 Interest Rate2%

The GCL’s final maturity date is March 21, 2029.

The proceeds of the loan were to be used by the borrower to finance a commercial contract between APUA and BCEG, which was signed on March 11, 2008. The loan's (principal) amount outstanding was EC$ 71,172,774 (or approximately RMB 167,759,220) as of September 2020.

The purpose of the project was to construct the 30MW Wadadli power plant — with six 5MW generators — in Crabbs, Antigua. Beijing Construction Engineering Group Co. Ltd. was the contractor responsible for project implementation. A groundbreaking ceremony was held on October 2, 2008. The project was officially completed and handed over to the local authorities on September 8, 2011.

Then, in 2012, the plant stopped working due to consistent overheating.

Allegations arose that the power plant engines were used, rather than the new engines that Beijing Construction Engineering Group Co. Ltd. had promised.

Another allegation emerged: that the engines only cost RMB 147 million and that the additional RMB 157 million was never allocated or misappropriated.

The power plant already had rusting before the point of its commissioning in 2011 and it was decommissioned five years later (in 2016). Three of the units were brought back into use in 2017 at the cost of $6 million. However, one of the units failed again several years later.

In September 2020, APUA’s Electricity Business Unit Manager, Andre Matthias, announced that the power plant would be closing due to the conditions of the plant itself and its underperformance.

In September 2020, the outstanding balance of the China Eximbank loan was EC$71,172,774 (or approximately RMB 167,759,220), which prompted questions and concerns about how the loan would be repaid in the absence of electricity sales from a functioning power plant.

Antigua and Barbuda’s Information Minister Melford Nicholas said in September 2020 that ‘It is a tricky issue because as you would know the government enjoys a very good bilateral relationship with the People’s Republic of China and this represents a blot, represents a terrible outcome in terms of what should have been an effective developmental support for the infrastructure in the country.

It really is a bad situation. […] I think the most that can happen now is for both parties to have a conversation as to what happens to the outstanding arrears and the debt that has been incurred and whether or not consideration will be given for it to be written off […] and whether or not there is a methodology of converting the debt into another form of development but it is not something that is an easy road to tread. […] We do not want to necessarily impair that relationship with the government of China and allow this particular issue to impair the relationship but clearly we have not gotten value for money […] and so something needs to be done and we will engage them effectively so that we can come to some sort of compromise.’

📋 Staff Comments

This project is also known as the Antigua 30MW New Power Plant Project and the 30MW Apua Wadadli Power Plant Project. The Chinese project title is 安巴30兆瓦新电厂项目 or 安提瓜和巴布达30MW电厂项目.
The China Eximbank loan agreement can be accessed in its entirety via https://www.documentcloud.org/documents/20484897-atg_2008_428.
Some official sources (e.g. https://www.yumpu.com/en/document/view/42922405/antigua-and-barbuda-estimates-of-revenue-and-expenditure-2012) suggest that the face value of the loan is RMB 304,000,000 (which might reflect an upward revision after the initial loan agreement was signed). However, AidData has relied upon the face value of the loan that is identified in the original loan agreement [CHINA EXIMBANK GCL NO. (2008) 15 TOTAL NO. (234)], which was signed on June 26, 2008.
This China Eximbank loan is not captured in the China-Latin America Finance Database maintained by Boston University and Inter-American Dialogue.
A technical audit of the project was undertaken on June 22, 2015. It can be accessed in its entirety via https://www.dropbox.com/s/73n8oe9gb6vxwzw/Technical%20Audit%20of%20Apua%20Wadadli%20Power%20Plant%20Part%20I%20A.pdf?dl=0 and https://www.dropbox.com/s/1pjo4t5gf43nhb8/Technical%20Audit%20of%20Apua%20Wadadli%20Power%20Plant%20Part%20I%20B.pdf?dl=0 and https://www.dropbox.com/s/gtmgdhy2apiy7iw/Technical%20Audit%20of%20Apua%20Wadadli%20Power%20Plant%20Part%20I%20C.pdf?dl=0 and https://www.dropbox.com/s/mzqulnn0l5368pz/Technical%20Audit%20of%20Apua%20Wadadli%20Power%20Plant%20Part%20I%20D.pdf?dl=0 and https://www.dropbox.com/s/nq9pxvywdirsdlq/Technical%20Audit%20of%20Apua%20Wadadli%20Power%20Plant%20Part%20II.pdf?dl=0

📚 Sources & References

2018 Antigua & Barbuda Recurrent and Development Estimates
Antigua & Barbuda Recurrent and Development Estimates
Antigua and Barbuda Estimates 2023
Antigua and Barbuda Estimates 2024
Antigua and Barbuda Renewable Readiness Assessment
Antigua and Barbuda’s Electrical Grid and the Supply thereof: The Past
Present, and Future
ANTIGUA NEW POWER PLANT PRC'TECT GOVERNMENT CONCESSIONAL LOAN AGREEMENT
Antigua New Power Plant Project Government Concessional Loan Agreement
Antigua New Power Plant Project Government Concessional Loan Agreement
Antigua New Power Plant Project Government Concessional Loan Agreement
Antigua Opposition calls for probe into $47M US Chinese built power plant
Antigua Power Company Ltd v The Attorney General of Antigua and Barbuda & Ors (Antigua And Barbuda) (Rev 2)
Antigua to consider request for probe of controversial Chinese power plant
APUA must help ‘fill the gap’ left by axed power plant
Challenges and Opportunities for the Energy Sector in the Eastern Caribbean
Chinese embassy in Antigua picketed
Chinese offers no guarantee for US$47M Antigua power plant
Chinese officials inspect Antigua power plant amid allegations of equipment flaws
Judgement
New APUA Facility Is An Investment For Antigua And Barbuda
Officials explain process to procure power plant
Remarks by H.E. Mr. Liu Hanming
Ambassador of the People's Republic of China to Antigua and Barbuda, at the Completion and Handing Over Ceremony for the 30 Mega Watt Power Plant Aided by China, technical audit
Technical Audit of Apua Wadadli Power Plant - Part 1C
Technical Audit of Apua Wadadli Power Plant Part 1B
Technical Audit of Apua Wadadli Power Plant
Antigua
Wadadli Power Plant Documentary
中国进出口银行代表团访问安巴
中国进出口银行行长李若谷访问安巴
北京建工集团承建安巴电厂项目正式开工
安巴30兆瓦新电厂项目举行隆重开工典礼
安巴总理斯潘塞与陈立钢大使共同视察我援安巴项目
安巴新电厂项目签署优贷协议
安提瓜和巴布达30MW电厂项目
我驻安巴大使刘汉明慰问我在安巴项目组
驻安巴大使刘汉明慰问我援建项目中方工程技术人员
驻安巴经商处黄跃国一秘考察援安在建项目
驻安提瓜和巴布达大使刘汉明和安巴总理斯潘塞共同主持中国援安巴电厂项目竣工和交接典礼
驻安提瓜和巴布达大使刘汉明在中国援安巴30兆瓦新建电厂项目竣工和交接仪式上的讲话
驻安提瓜和巴布达大使刘汉明对安巴经援项目进行实地考察
驻安提瓜和巴布达大使刘汉明慰问我援外项目施工人员
驻安提瓜和巴布达大使刘汉明视察我援安巴电厂项目
驻安提瓜和巴布达大使刘汉明陪同中国进出口银行代表团会晤安巴总理斯潘塞
驻安提瓜和巴布达大使陈立钢与安巴总理斯潘塞签订优惠贷款框架协议
驻安提瓜和巴布达大使陈立钢出席安巴30兆瓦新电厂开工仪式
驻安提瓜和巴布达大使陈立钢出席安巴电厂项目开工仪式
驻安提瓜和巴布达大使陈立钢应安巴总理斯潘塞邀请一同视察工程项目
驻安提瓜和巴布达大使陈立钢赴我援建电厂工地慰问 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.