China Eximbank provides RMB 264.06 million buyer's credit loan for Skylight Hotel Construction Project

📋 Staff Comments

1. This project is also known as the Ethiopian Airlines Hotel Project, the Ethiopian Hotel Project, and the Hotel Project. The Chinese project title is 埃塞俄比亚航空公司五星级酒店项目 or 埃航格兰云天酒店.
2. China Eximbank and AVIC Engineering Corporation apparently signed a $42,250,000 Engineering, Procurement, Construction and Financing (EPC+F) agreement for the Skylight Hotel Construction Project. Under most EPC+F contractual arrangements, a loan is extended to the EPC contractor but with a sovereign guarantee from the host government. This issue warrants further investigation.
3. 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 September 2024.
4. Grand Skylight Hotels Management Company (GSHM) is a wholly-owned subsidiary of AVIC with a registered capital of 298 million yuan. The company started its business in 1985 from Shenzhen Shanghai Hotel and has more than 30-years' experience in hotel planning, construction consultancy and operations management. On August 2, 2016, Grand Skylight Hotels Management and Ethiopian Airlines successfully signed a technical service contract for the Skylight Hotel Construction Project (Ethiopian Airlines Hotel Project).
5. Ethiopian Airlines is a wholly state-owned company. It is the is state-owned flag carrier of Ethiopia.
6. One official source (https://www.dropbox.com/scl/fi/5nwg72mj7unyc41tgsmh1/List-of-Ethiopia-China-Cooperation-Major-Projects-from-Ethiopia-s-Ministry-of-Finance-September-2024.xlsx?rlkey=v9vjryd8kmq0bzshgocuma6mb&dl=0) identifies the loan that supported the project as a government concessional loan (GCL). This issue warrants further investigation.
7. The loan's principal amount outstanding in June 2017 is identified via http://www.repository.smuc.edu.et/bitstream/123456789/4011/1/Final%20Draft%20%20Draft%20Thesis%20%28June%2020%29.pdf8. The loan identification number in the Government of Ethiopia’s Debt Management and Financial Analysis System (DMFAS) is 20967004 and the corresponding project name in DMFAS is ‘EAL-HOTEL PROJECT’. See https://www.dropbox.com/scl/fi/7nrczfanixvivmiyzqx3i/MOFED-Loan-Level-Data-on-Borrowing-Terms-and-Loan-Performance-September-2024_OTHER_PUBLIC.xlsx?rlkey=5sqhh9ii4t3x8cmz0jf6s7cod&dl=09. One source (http://www.repository.smuc.edu.et/bitstream/123456789/4011/1/Final%20Draft%20%20Draft%20Thesis%20%28June%2020%29.pdf) indicates that the loan carried a variable (floating) marker interest rate rather than a fixed (5%) interest rate. This issue warrants further investigation.

📚 Sources & References

• Ethiopian Airlines unveils Grand Skylight Hotel in Addis Ababa
• Ethiopian Inaugurates Three Wide Body Paint and Maintenance Hangars
• Ethiopian airlines set to inaugurate 5-star hotel
• ETHIOPIAN AIRLINE
• 埃航格兰云天酒店将于2018年开业
• 中航国际工程公司携手格兰云天打造埃塞五星酒店
• ANNUAL REPORT 2013/14
• PM Abiy Inaugurates Bole Airport Terminal Expansion And Ethiopian skylight Hotel
• Ethiopian Skylight Hotel inaugurated in Addis Ababa
• The Ethiopia Grand Skylight International Hotel Grandly Opened
• Second 5-Star Hotel for Ethiopian Airlines
• Ethiopian Airlines’ Five-star Hotel held opening ceremony
• GSHM to manage Ethiopian Airlines hotel
• Grand Skylight Enters Africa
• 关于我们 - Development
• AVIC-ETHIOPIAN AIRLINES HOTEL
• FINANCIAL RISK MANAGEMENT PRACTICES: THE CASE OF ETHIOPIAN AIRLINES
• List of Ethiopia- China Cooperation Major Projects from Ethiopia's Ministry of Finance September 2024
• MOFED Loan-Level Data on Borrowing Terms and Loan Performance September 2024_OTHER_PUBLIC 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.