China Eximbank signs $2 billion oil-backed master facility agreement with Government of Chad (Linked to Record ID#30856)

China Eximbank signs $2 billion oil-backed master facility agreement with Government of Chad In August 2011, China Eximbank and the Government of Chad signed a non-concessional master facility agreement (MFA).

The MFA was an umbrella agreement under which individual subsidiary loan agreements could be approved to finance eligible projects for a total amount of up to $2 billion (or 18 percent of the country’s GDP in 2012) over a five-year period.

The payment obligations under the MFA were collateralized with oil export receipts. This MFA agreement was later cancelled by the Chadian Government in December 2013.

The IMF sounded the alarm in a July 2013 report, noting that "collateralization of payment obligations subordinated other creditors and contravened the surrender requirements under the BEAC law." Now cancelled projects under the MFA included: (i) a new international airport for N’Djamena (captured via Record ID#30856); (ii) a gas power plant (100 MW); (iii) construction of 400–500 km of roads; (iv) a two-lane road bridge near N’Djamena; (v) cultivation of 20,000 ha of agricultural land; and (vi) a cement plant (with a capacity of 600,000 tons per year).

It appears that the construction of 400-500km of roads include the following projects: Massakory-Moussoro Road Construction Project (captured via Record ID#56235), Kélo-Pala-Léré-Cameroon Border Road Construction Project (captured via Record ID#56246), and 420 km Abéché-Biltine-Iriba-Am-Djarass Construction Project (captured via Record ID# #56258).