Completed Mixed AidData Chinese Aid

ICBC provides $28.4 million buyer's credit for NG-ZTE Lot I & Lot II Power Project (Linked to Record ID#69392)

$28.49M USD

Funder	Industrial and Commercial Bank of China (ICBC)
Recipient Organization	Ethiopia Electric Power Corporation
Country	Ethiopia
Start Date	May 04, 2014
End Date	Dec 03, 2029
Duration	5,692 days
Number of Grantees	1
Roles	Recipient
Data Source	AidData Chinese Aid
Grant ID	`69391`

Grant Description

ICBC provides $28.4 million buyer's credit for NG-ZTE Lot I & Lot II Power Project On May 4, 2014, the Industrial and Commercial Bank of China (ICBC) signed a $28,485,814.98 buyer's credit (loan) agreement with Ethiopia Electric Power Corporation (EEPCo) for the NG-ZTE Lot I & Lot II Power Project.

📋 Loan / Grant Terms

📅 Maturity11.639 years

⏳ Grace Period3.635 years

The loan's first and last scheduled principal payment dates were December 20, 2017 and December 20, 2025, respectively. Its first and last scheduled interest payment dates were December 20, 2016 and June 20, 2027, respectively. The Government of Ethiopia issued a sovereign guarantee in support of the buyer's credit.

The purpose of the project was to provide electricity for ICT infrastructure. ZTE Corporation was the contractor responsible for implementation. The project was completed and put into operation in 2018.

📋 Staff Comments

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.
This project is also known as the Electricity Project.
ICBC also financed Lot III and Lot IV (as captured via Record ID#69392).
Some sources identify China Development Bank (CDB) rather than ICBC as the financier. This issue warrants further investigation.
The loan identification number in the Government of Ethiopia’s Debt Management and Financial Analysis System (DMFAS) is 20878000 and the corresponding project name in DMFAS is ‘NG-ZTE LOT I & LOT II POWER’. 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=06. As of September 2024, the Government of Ethiopia recorded the loan's all-in interest rate as 8.36% in DMFAS. 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=0

📚 Sources & References

Annual Public Sector Debt Portfolio Report For the Year 2017/18
Public Sector Debt Statistical Bulletin No 13
Chinese Loans to Africa Database
SAIS-CARI Loans China
MOFED Loan-Level Data on Borrowing Terms and Loan Performance September 2024_PUBLIC
Infrastructure Development in Ethiopia and Its Impact on Economic Diplomacy With China
List of Ethiopia- China Cooperation Major Projects from Ethiopia's Ministry of Finance September 2024 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.