Active Development AidData Chinese Aid

China Eximbank provides $87.6 million government concessional loan for Phase 1 of 134 km Adi-Guadad-Habela-Cheatat-Aqurdat Road Project

$87.6M USD

Funder	Export-Import Bank of China (China Eximbank)
Recipient Organization	Government of Eritrea
Country	Eritrea
Start Date	Jan 18, 2018
End Date	May 21, 2030
Duration	4,506 days
Number of Grantees	1
Roles	Recipient
Data Source	AidData Chinese Aid
Grant ID	`55850`

Grant Description

China Eximbank provides $87.6 million government concessional loan for Phase 1 of 134 km Adi-Guadad-Habela-Cheatat-Aqurdat Road Project On January 18, 2018, China Eximbank and the Government of Eritrea signed $87.6 million government concessional loan (GCL) agreement for Phase 1 of the 134 km Adi-Guadad-Habela-Cheatat-Aqurdat Road Project.

The borrowing terms of the GCL are unknown.

However, it is known that the borrower is expected to use the proceeds of the GCL to finance a commercial contract between the Government of Eritrea and Shanghai Corporation for Foreign Economic & Technical Cooperation (SFECO).

The purpose of the first phase of the project is to asphalt a 29 km, two-lane road section between Adi-Guadad with Habela.

This road section is part of a larger, 134 km road than runs from Adi-Guadad to Aqurdat (Akordat) via Habela and Cheatat.

Shanghai Corporation for Foreign Economic & Technical Cooperation (SFECO) is the contractor responsible for implementation. A formal groundbreaking ceremony for this project took place on November 11, 2019. At the ceremony, Eritrea’s Minister of Public Works, Mr.

Abraha Asfeha, indicated that the old road connecting Asmara and Gash Barka region (via Keren) was very narrow and its rolling mountainous topography limits driving speeds and is dangerous.

He said that the new road would be build to a high standard and it would shorten the existing Asmara-Akordet road by 20 km and it would be of strategic economic importance. The first batch of equipment and supplies for this project arrived on site on October 20, 2019.

Then, on February 25, 2020, the Government of Eritrea’s Ministry of Information reported that the project was ‘on schedule’.

📋 Staff Comments

This project is also known as the First Phase of the Adi-Guadad-Akordet Road Infrastructure Project, the First Phase of the Adi-Guadad-Akordet Road Project, and Phase I of the 133 km Adi-Guaedad to Akordat Road Asphalting Project. The Chinese project title is 阿斯马拉-阿科达特公路一期项目 or 阿科达特公路一期项目.
This government concessional loan was denominated in RMB, but only its USD equivalent value could be retrieved by AidData. This issue warrants further investigation.

📚 Sources & References

Eritrea and the PRC Sign Loan Agreement
A loan of $87.6 million USD has been agreed between Government of Eritrea and China
Eritrea and the PRC Sign Loan Agreement
Eritrea and China sign USD 87 million loan agreement
Eritrea and the PRC Sign Loan Agreement
Remarks by Chinese Ambassador Yang Zigang at the 2018 Spring Festival Reception
Remarks by Chinese Ambassador Yang Zigang at the 2018 Spring Festival Reception
The first phase of Habela-Cheatat road construction launches
Construction of Habela-Cheatat road in Eritrea in good progress
Eritrea launches first phase of Chinese-contracted road project
The first phase of Adi-Guadad-Habela-Cheatat-Akordet road construction launches
Ethiopia and China sign 87m dollars loan agreement
Ground-breaking ceremony for the new
Adi Guadad-Agordat asphalt Road
Eritrea: SFECO to Build New 134km Adi Guadad-Akordet Highway
厄立特里亚阿科达特公路项目一期工程开工仪式举行
The 1st Phase of Akordet Road Construction Launched
T h e F i r s t S h i p m e n t o f E q u i p m e n t f o r E r i t r e a H i g h w a y P r o j e c t A r r i v e d
Eritrea launches first phase of Chinese-contracted road project
Ground-breaking ceremony for the central Habela-Cheatat section (30Kms) of the new
Adi Guadad-Agordat, two-lane, asphalt Road (134 Km), held today in Habela. This mountainous segment will be constructed by SFECO company on the basis of Chinese Government concessional loan.
厄立特里亚
The first phase of the construction of the Habela-Cheatat strategic road reported is in good progress.
China's Overseas Development Finance
Adi-Guaedad (Asmara)-Akordet Town Highway Construction Launched፡
The first phase of Adi-Guadad-Habela-Cheatat-Akordet road construction launches 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 Eritrea

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