Active Mixed AidData Chinese Aid

China Eximbank pledges loan for 50MW Edevu Hydropower Plant Project (Linked to Record ID#61212, #68901)

Funder	Export-Import Bank of China (China Eximbank)
Recipient Organization	PNG Hydro Development Ltd. (PNGHDL)) (PNG Hydropower)
Country	Papua New Guinea
Start Date	Jan 01, 2017
End Date	Sep 14, 2028
Duration	4,274 days
Number of Grantees	1
Roles	Recipient
Data Source	AidData Chinese Aid
Grant ID	`68905`

Grant Description

China Eximbank pledges loan for 50MW Edevu Hydropower Plant Project In November 2014, China Railway Construction Engineering Group, AG Investment Limited, and China Development Bank Corporation signed a project investment and financing framework for the 50MW Edevu Hydropower Plant Project.

Then, in 2017, China Development Bank signed a $260 million loan agreement with PNG Hydro Development Company Limited (PNGHDCL or PNGHDL) — a special purpose vehicle (SPV) — for the 50MW Edevu Hydropower Plant Project (see linked Record ID#61212).

📋 Loan / Grant Terms

💰 Loan Amountare unknown

In 2017, China Eximbank also expressed interest in lending to PNGHDL for the 50MW Edevu Hydropower Plant Project, but it is unclear if a loan agreement with China Eximbank was ever finalized.

PNGHDL also signed a power purchase agreement with PNG Power (PPL) — a state-owned power utility — and under the terms of this agreement PNGHDL agreed to produce electricity and sell it to PPL.

The purpose of the project was to construct a 50MW hydropower plant near the village of Edevu within Kairuku-Hiri District in Central PNG.

The hydropower plant site is located at 147°20ʹ23.5ʹ east longitude and 9°11ʹ23.6ʹ’ south latitude in the middle reaches of the Brown River in the northern part of PNG's capital Port Moresby.

Upon completion, it is expected that the power plant will generate between 50MW and 54MW of additional power for the capital city Port Moresby, as well as provide residents with an alternative water source.

Hunan Hong Yu Engineering Group Ltd., China Railway Construction Engineering Group, AG Investment Limited and SMEC are the contractors responsible for project design and implementation. A formal groundbreaking ceremony took place on February 6, 2017. Then, in late May 2017, the construction of a 500 meter underground diversion tunnel was completed.

On August 15, 2019, China Energy Gezhouba Group signed a contract for project management (PMC) with PNGHDL.

The project was originally expected to commence on April 7, 2015 and reach completion on April 30, 2016, but it is now expected to be completed in June 2022.

Linked Record ID#68901 captures Lishui Company's 12.5 million yuan investment in PNG Hydro Development Company Limited for the 50MW Edevu Hydropower Plant Project.

📋 Staff Comments

This project is also known as the 54MW Edevu Hydropower Plant Project, Edwu Hydropower Station Project, the EDEVU Hydropower Project and the Edevu HPP. The Chinese project title is 埃德伍水电站. On February 19, 2016, the Edevu-Moitaka 132 kV Double Circuit Transmission Line Project was launched. The purpose of this project is to evacuate power from the 50MW Edevu Hydropower Plant — and eventually the 80MW Upper Naoro Brown Hydropower Plant — to Moitaka and Gerehu substations. It is unclear how the Edevu-Moitaka 132 kV Double Circuit Transmission Line Project is being financed. This issue requires further investigation. The project has also secured financing Hunan Provincial Government through the Lishui Company (LHPC, also known as Hunan Lishui River Rasin Water Conservancy and Hydropower Development Co, Ltd, 湖南澧水清洁能源投资有限公司), which was jointly established by the Chinese Ministry of Water Resources and the Hunan Provincial People's Government. LHPC provided RMB 12.5 million in support of the project (as captured in Project ID#68901).The China Eximbank loan pledge is captured in this project. Some sources suggest it is the sole financier of the project rather than China Development Bank. This issue merits further investigation.It is unclear who owns PNG Hydro Development Company Limited. Some sources indicate that it is a wholly owned subsidiary of AG Investment Limited. Other sources indicate that East Vision Group of China is the majority shareholder. Still other sources indicate that a local group of landowner have an equity stake in the project. This issue requires further investigation.

📚 Sources & References

Hydropower leads renewable energy push in PNG
Port Moresby set for hydro power boost from Chinese company
Edevu Hydro Power Project Launched
Hydro power to drive renewable energy
葛洲坝签署巴布亚新几内亚埃德武水电站工程项目管理（PMC）合同
Edevu hydro was my initiative, says O'Neill
PNG Power Plan To Switch
Edevu villagers to get hydro power plant
Edevu LOs Power Project Not Ours
Chinese company signs hydropower project contract in Papua New Guinea
Edevu Hydro Project to come Online in 2020
K600m hydro power project launched
用市场引合作 2018年APEC峰会四川民企要供电, 07 Papua new Guinea Power Point
EDEVU HYDRO
埃德伍(EDEVU)水电站
PNG APEC ready
KFM Weekly Investment Update: Friday, 10 February 2017
K600mil project to lift supply
On the First Day of the Chinese New Year
Chinese Ambassador to Papua New Guinea Xue Bing Visits the PMC Project Department of EDEVU hydropower project
Edevu power plant opening this year
驻巴新大使曾凡华和马拉佩总理共同出席埃德伍水电站蓄水仪式
驻巴布亚新几内亚大使曾凡华出席埃德伍水电站蓄水仪式 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.