Completed Mixed AidData Chinese Aid

China Eximbank provides $299.2 million buyer’s credit loan for Phase 1 of the 66kV Malabo Power Grid Project (Linked to Record ID#484)

$299.21M USD

Funder	Export-Import Bank of China (China Eximbank)
Recipient Organization	Government of Equatorial Guinea
Country	Equatorial Guinea
Start Date	Jan 01, 2009
End Date	Jul 22, 2029
Duration	7,507 days
Number of Grantees	1
Roles	Recipient
Data Source	AidData Chinese Aid
Grant ID	`61631`

Grant Description

China Eximbank provides $299.2 million buyer’s credit loan for Phase 1 of the 66kV Malabo Power Grid 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%

The subsidiary buyer's credit loans under the $2 billion facility were secured with (i.e. collateralized against) minimum cash balances in an escrow account opened by Government of Equatorial Guinea in China Eximbank.

Under the original terms of an Account Settlement and Financing Agreement (Convenio de Liquidacion de cuentas y Financiamiento) that the parties signed on February 17, 2006, the minimum cash balance requirement was reportedly equivalent to 30 percent of the Government of Equatorial Guinea's outstanding stock of debt to China Eximbank.

After the Account Settlement and Financing Agreement was amended on March 26, 2010, the borrower was expected -- at any given point in time -- to maintain a minimum cash balance in the escrow account (also known as 赤道几内亚共和国财务预算部) equivalent to the value of its next set of semi-annual principal, interest, and fee payment obligations to the lender.

The borrower was also expected to deposit the cash proceeds from its oil export sales (crude oil sales revenue) to China into a payment reserve account (also known as 还款准备金 or 赤道几内亚共和国财务预算部还款准备金).

More specifically, the borrower was expected to deposit the cash proceeds from six oil cargoes into the payment reserve account.

In 2009, China Eximbank and the Government of Equatorial Guinea signed a $299,208,139.74 subsidiary buyer’s credit loan agreement for Phase 1 of the 66kV Malabo Power Grid Project.

The proceeds of the loan were to be used by the borrower to finance (i) an EUR 99.91 million commercial contract between Ministry of Energy and Mines of Equatorial Guinea and CMEC for the project's first phase, and (ii) a $221 million commercial contract (ID#CMEC2010C308) between Ministry of Energy and Mines of Equatorial Guinea and CMEC for the project's second phase.

The loan disbursed $30,709,343.12 as of 2009, $156,723,636.42 as of 2010, $226,868,227.74 as of 2011, $228,868,227.74 as of 2012, $228,868,227.74 as of 2013, $228,868,227.74 as of 2014, $228,868,227.74 as of 2015, $228,868,227.74 as of 2016, and $228,868,227.74 as of 2017.

Its principal amount outstanding was $30,709,343.12 in 2009, $156,723,636.42 in 2010, $226,868,227.74 in 2011, $214,526,688.99 in 2012, $118,628,722.97 in 2013, $29,910,092.71 in 2014, $11,873,944.88 in 2015, $500,000 in 2016, and $0 in 2017.

The project involved the construction of a 66kV electricity transmission line between Malabo City and Sipopo and a 66/200 kV substation in Sipopo. CMEC was the general EPC contractor responsible for Phase 1 and Phase 2 implementation. The Changjiang Institute of Survey, Planning, Design, and Research was the contractor responsible for project design.

Construction commenced on December 10, 2010 and 66kv power equipment arrived in Malabo on February 12, 2011. Construction ended on May 21, 2011 and a formal project completion ceremony took place on June 4, 2012. Record ID #62264 captures Phase II of the 66kV Malabo Power Grid Project

📋 Staff Comments

The Chinese project title is 赤道几内亚马拉博城市电网建设项目二期工程 or SIPOPO互联项目 or 赤几马拉博城网项目 or 马拉博燃气电厂扩容项目 or 赤道几内亚马拉博燃气电厂扩容项目. The Spanish project title is Proyecto de la Red Electrica de 66Kw de la Ciudad de Malabo e interconeccion con Sipopo or Red Electrica de Malabo.
Some sources suggest that China Eximbank signed two separate subsidiary buyer’s credit loan agreements with the Government of Equatorial Guinea: one for Phase 1 of 66kV Malabo Power Grid Project in 2009 and another for Phase 2 of 66kV Malabo Power Grid Project in March 2010. However, a single buyer's credit loan agreement -- with face (commitment) value of $299,208,139.74 -- is recorded in the Ministry of Finance Statements on Equatorial Guinea's External Debt Situation. See https://www.dropbox.com/scl/fi/20hjuaclx0huk36o4oqnf/Ministry-of-Finance-Statements-on-Equatorial-Guinea-s-External-Debt-Situation-2009-2019.xlsx?rlkey=sj7qii1zooaiwdi649d1yri1k&dl=0.
The loan's precise commitment date is unknown. It is currently coded as January 1, 2009 based upon the first year in which the loan appears in the Ministry of Finance Statements on Equatorial Guinea's External Debt Situation (see https://www.dropbox.com/scl/fi/20hjuaclx0huk36o4oqnf/Ministry-of-Finance-Statements-on-Equatorial-Guinea-s-External-Debt-Situation-2009-2019.xlsx?rlkey=sj7qii1zooaiwdi649d1yri1k&dl=0). This issue warrants further investigation.
Data on disbursements, repayments, and amounts outstanding are drawn from the Ministry of Finance Statements on Equatorial Guinea's External Debt Situation (see https://www.dropbox.com/scl/fi/20hjuaclx0huk36o4oqnf/Ministry-of-Finance-Statements-on-Equatorial-Guinea-s-External-Debt-Situation-2009-2019.xlsx?rlkey=sj7qii1zooaiwdi649d1yri1k&dl=0).

📚 Sources & References

经济及市场环境
Completion Ceremony Held for Power Projects in Malabo
Equatorial Guinea Malabo Power Grid Phase II Project Commenced Test Operation
Obra: Proyecto de la Red Electrica de 66 Kw de la Ciudad de Malabo e interconeccion con Sipopo.
Malabo Urban Grid Phase 2 in good operation
赤几政府官网刊载对我处苏建国参赞采访
Eastern Promises: New Data On Chinese Loans in Africa, 2000 to 2014
Republic of Equatorial Guinea: 2010 Article IV Consultation
List of Chinese loans published of Equatorial Guinea Ministry of Finance Website in 2021, deuda externa e interna
China Loans to Africa
Equatorial Guinea Malabo Power Grid Phase II Project Commenced Test Operation
Programa de Acción Nacional de Lucha contra laDeforestación y degradación de tierras en GuineaEcuatorial (PAN/LCD)
EVALUACION DE RECURSOS HE EN EL RÍO ILADYI
TecHonor Journal
中国机械设备进出口总公司签约马拉博燃气电厂扩容项目, 2013 China Machinery Engineering Corporation Social Responsibility Report
La cooperación sino-ecuatoguineana en mis ojos(2018-04-08)
Power Transmission Lines and Transmission Stations
中国驻赤几使馆临时代办林棘政务参赞一行视察马拉博燃气电厂扩容项目, http://www.cmec.com/en/contents/141/1760.aspx
China Machinery Engineering Corporation Global Offering
China-Africa Trade and Economic Cooperation Special
Proyectos Línea de Crédito Chino LCC
Ministry of Finance Statements on Equatorial Guinea's External Debt Situation, 2009-2019 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

Interested in applying for this grant?

Complete our application form to express your interest and we'll guide you through the process.

Apply for This Grant