Active Mixed AidData Chinese Aid

China Eximbank provides EUR 138.9 million buyer’s credit loan for Bata University Campus Construction Project

$138.94M USD

Funder	Export-Import Bank of China (China Eximbank)
Recipient Organization	Government of Equatorial Guinea
Country	Equatorial Guinea
Start Date	Jun 30, 2019
End Date	Jun 27, 2032
Duration	4,746 days
Number of Grantees	1
Roles	Recipient
Data Source	AidData Chinese Aid
Grant ID	`61538`

Grant Description

China Eximbank provides EUR 138.9 million buyer’s credit loan for Bata University Campus Construction Project On November 16, 2006, China Eximbank and the Government of Equatorial Guinea signed a $2 billion buyer’s credit facility agreement (互惠贷款) for various infrastructure projects.

📋 Loan / Grant Terms

💰 Loan Amountfacility agreement carry the following terms: a 5

📅 Maturity5 years

⏳ Grace Period2 years

💹 Interest Rate5.5%

In 2013, China Eximbank and the Government of Equatorial Guinea expected to sign a subsidiary buyer’s credit loan agreement for the Bata University Campus Construction Project.

The proceeds of the loan were expected to be used by the borrower to finance a $239 million (or 120 billion CFA) commercial contract with China State Construction Engineering Corporation (CSCEC), which was signed on June 4, 2013.

However, on February 15, 2018, the Government of Equatorial Guinea and China State Construction Engineering Corporation Ltd. signed a revised commercial contract worth EUR 182,938,821 for the Bata University Campus Construction Project.

Then, in June 2019, the Government of Equatorial Guinea and China Eximbank signed an EUR 138,941,256.72 loan agreement for the Bata University Campus Construction Project.

📋 Loan / Grant Terms

💰 Loan Amountincluded a 13 year maturity

📅 Maturity13 years

⏳ Grace Period3 years

The borrower was expected to use the loan proceeds to finance (a) 70% of the cost of an EUR 182,938,821 commercial contract between the Republic of Equatorial Guinea (represented by the Ministry of Public Works, Housing and Urban Planning, the Ministry of Finance, Economy and Planning, and Oficina Nacional de Planificacion y Seguimiento de Proyectos) and China State Construction Engineering Corporation Ltd., which was signed on February 15, 2018; and (b) 85% of the EUR 12,804,802.38 cost of a Sinosure insurance premium.

The project involves the construction of the Bata campus of the Universidad Nacional de Guinea Ecuatorial (UNGE). The campus is designed to can accommodate 4000 students and 400 faculty. China State Construction Engineering Corporation Ltd. is the EPC contractor responsible for project implementation.

Construction began on or around June 4, 2014. As of July 2018, construction was still ongoing. By 2019, the project had only achieved a 30% completion rate.

📋 Staff Comments

The Chinese project title is 和巴塔大学 or 巴塔大学项目. The Spanish project title is El Proyecto de Campus Universitario de Bata.
The China Eximbank loan that supported Bata University Campus Construction Project is not included in the database of Chinese loan commitments that SAIS-CARI released in July 2020. Nor is it included it in the China’s Overseas Development Finance Dataset that Boston University's Global Development Policy Center published in December 2020.
A draft, English language version of the China Eximbank loan agreement can be accessed in its entirety via https://www.dropbox.com/scl/fi/2o498fald2sb6hgidmt98/Loan-Agreement-EG-Bata-University-for-MoF-review-20190627.pdf?rlkey=0m4276mv0q56zyomfxqz2zrul&dl=0. A draft, Spanish language version of the China Eximbank loan agreement can be accessed in its entirety via https://www.dropbox.com/scl/fi/qr73ycyidn77zt2gy0b2k/Equatorial-Guinea-2019-China-Eximbank-Loan-Agreement-for-the-Bata-University-Construction-Project-Spanish.pdf?rlkey=prsh8rjfxgtsclzlvoddhhwa8&dl=04. Official correspondence between China Eximbank and Equatorial Guinea's Ministry of Finance in June 2019 can be accessed via https://www.dropbox.com/scl/fi/n8xchups0k48mmpslaare/Re-Comments-on-the-loan-agreement-of-Bata-University-Project.pdf?rlkey=pji4cag384b3lg867zp9tax8v&dl=05. For loan and debt rescheduling records with variable interest rates, AidData calculates the all-in interest rate at T0 based on the reference rate (such as LIBOR or EURIBOR) on the loan start date, plus any known margin. Please see the methodology for additional details.
Official correspondence between Sinosure and Equatorial Guinea's Ministry of Finance in June 2019 can be accessed via https://www.dropbox.com/scl/fi/c6rpoiahjootoxkhv0bsg/RV-Letter-from-China-Export-Credit-Insurance-Coporation-Sinosure.pdf?rlkey=gfp2s0s8auc90n1nrxer9tkri&dl=0 and https://www.dropbox.com/scl/fi/jo2cr9ge8l90er80jwzon/Letter-from-SINOSURE.pdf?rlkey=ujf89lytnp8r943cpsdn62576&dl=07. The loan's (ex ante) amortization table can be accessed via https://www.dropbox.com/scl/fi/54215s0gylruzgusqkc5n/EFECTO_FISCAL_DE_UN_PRESTAMO_DE_138.pdf?rlkey=8d8luc55qmpgrplajc1e0uotd&dl=0

📚 Sources & References

Acuerdo de préstamo (Préstamo para Contratación de l Pro yecto de Construcción Extranjera)
Comments on the Loan Agreement of Bata University Project
DESARROLLO DE COOPERACIÓN ECONÓMICA Y COMERCIAL ENTRE CHINA Y GUINEA ECUATORIAL
Eastern Promises: New Data On Chinese Loans in Africa, 2000 to 2014
EFECTO FISCAL DE UN PRESTAMO DE 138.941.256,72 EUROS
Equatorial Guinea's Golen Juiblee: The Emergence of a New Nation
German and Equatorial Guinean College Students Visit Project Site of College Town in Malabo
INFORME DE LA MISION DE LA DELEGACION DEL MINISTERIO DE HACIENDA
ECONOMÍA Y PLANIFICACION A BEIJING (REPÚBLICA POPULAR DE CHINA) DEL 22 AL 28 DE JUNIO DEL PRESENTE 2.019
La cooperación sino-ecuatoguineana en mis ojos(2018-04-08)
Letter from Sinosure to Equatorial Guinea Ministry of Finance
Economy, and Planning
Prime Minister Obama of Equatorial Guinea Visited China State Construction
Republic of Equatorial Guinea: 2010 Article IV Consultation
Servicios Universitarios
THE EXPORT-IMPORT BANK OF CHINA as the 'Lender' And THE REPUBLIC OF EQUATORIAL GUINEA REPRESENTED BY MINISTRY OF FINANCE
ECONOMY AND PLANNING OF THE REPUBLIC OF EQUATORIAL GUINEA as the 'Borrower' Loan Agreement (Loan for Contracting Foreign Construction Project), [Email correspondence with subject line 'Letter from China Export & Credit Insurance Coporation (Sinosure)'], [Email correspondence with subject line 'Re Re Comments on the loan agreement of Bata University Project'], [Email correspondence with subject link 'Rv Re Comments on the loan agreement of Bata University Project']
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赤道几内亚马拉博大学城项目 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 Equatorial Guinea

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