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China Eximbank provides $114.1 million loan for 330kV Kabwe-Pensulo Second Transmission Line Project (Linked to Record ID#88639)
| Funder | Export-Import Bank of China (China Eximbank) |
|---|---|
| Recipient Organization | Zambia Electricity Supply Corp. (ZESCO) |
| Country | Zambia |
| Start Date | Dec 15, 2017 |
| End Date | Dec 19, 2033 |
| Duration | 5,848 days |
| Number of Grantees | 1 |
| Roles | Recipient |
| Data Source | AidData Chinese Aid |
| Grant ID | 72967 |
Grant Description
China Eximbank provides $114.1 million loan for 330kV Kabwe-Pensulo Second Transmission Line Project On December 15, 2017, China Eximbank and ZESCO — a state-owned power company in Zambia — signed a $114,138,082.756 loan agreement for the 330kV Kabwe-Pensulo Second Transmission Line Project.
Principal and interest are to be repaid in 24 successive semi-annual installments.
The loan’s outstanding amount was $7.64 million as of December 31, 2018, $7.64 million as of December 31, 2019, $7.6 million as of December 31, 2020, $7,639,261 as of June 30, 2021, and $7,639,261 as of June 30, 2022.
The project involved the construction of a 300 km, 330 kV second transmission line to improve the security and reliability of the supply of electricity between the Pensulo substation and the town of Kabwe.
The borrower was expected to use the proceeds of the loan to finance 85% of the cost of a $134,280,097.36 commercial contract between ZESCO and China Jiangxi Corporation for International Economic and Technical Cooperation (CJIC), which was signed on March 7, 2016 and amended on June 30. 2017. Construction began on November 21, 2019.
The project had reportedly achieved a 70% completion rate as of October 8, 2020.
The originally expected project implementation commencement and conclusion dates were March 15, 2019 and December 30, 2020, respectively.
Staff Comments
- This project is also known as 330kV Kabwe Stepdown-Pensulo Transmission Line Project and the Kabwe-Pensulo 330 kV Transmission Line II Project. The Chinese project title is 卡布韦至潘索罗330千伏输变电项目 or 赞比亚ZESCO输变电项目 or 330千伏输变电项目.
- SAIS-CARI reported the loan to be committed in 2017, but ZESCO reports stated that the loan was still under negotiations in 2017.
- The initial cost of the commercial contract was $120 million. It was signed with China Jiangxi International Economic and Technical Cooperation Corporation on March 7, 2016. A supplementary agreement of $14,378,537.31 was then signed for more engineering materials signed on June 30, 2017, raising the total contract value to $134,280,097.
- 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.
- In 2018, China Jiangxi Corporation for International Economic and Technical Cooperation (CJIC) provided a $17 million bridge loan (supplier’s credit) to ZESCO — a state-owned power company in Zambia — for the 330kV Kabwe-Pensulo Second Transmission Line Project (captured via Project ID#88639).
- One of the lawyers who advised on the transaction identifies the face value of the loan as $114,000,000. See https://www.dropbox.com/s/5xqey9jvmeo21jn/Project%20Financing.pdf?dl=0
Sources & References
- PIDA Progress Report 2016
- 赞比亚ZESCO输变电项目进入基础施工阶段, 【设备类】中国电建江西院赞比亚330kV Kabwe Stepdown-Pensulo Transmission Line互感器及避雷器设备采购项目招标公告
- 中国驻赞比亚大使李杰视察赞比亚江西经济合作区和输变电项目
- Kabwe to Pensulo in Serenje Transmission Line
- Zambia, 【服务类】中国电建江西设计院赞比亚KABWE-PENSULO 330kV 输变电工程物流服务招标公告, 【 设 备 类 】 中 国 电 建 江 ⻄ 院 赞 比 亚 330kV K a b w e S t e p d ow n - P e n su l o T r a n sm ission L in e 互 感 器 及 避 雷 器 设 备 采 购 项 目 招 标 公 告
- 李杰大使走访慰问中央省中资企业
- 给赞比亚3C公司的贺信, 【服务类】中国电建江西院赞比亚KABWE-PENSULO 330kV 输变电工程运输代理预中标结果公示
- 公司对外承包工程业务新签合同额和完成营业额连续六年双双进入全国前50强
- ZESCO Integrated Report 2017, 2017 Integrated Report
- Chinese Loans to Africa Database
- Energy sources for 2018
- 控疫情 抓生产 赞比亚ZESCO输变电项目紧张施工
- 中国对外承包工程国别（地区）市场报告 2019-2020
- 江西省2019年参与“一带一路”建设重点项目清单
- ZESCO 2016 Integrated Report
- 给赞比亚3C公司的贺信
- SAIS-CARI Loans China
- Zambia’s Chinese Debt in the Pandemic Era - Briefing Paper, 2019 Integrated Report
- 中国对外承包工程国别（地区）市场报告2019-2020.pdf
- 中国电建江西设计院赞比亚KABWE-PENSULO 330kV 输变电工程建筑及安装施工标段II、建筑及安装施工标段I招标公告
- CHALLENGES AND POSSI BLE SOLUTIONS IN ZAMBIA ’S ELECTRICITY SUPPLY INDUSTRY
- End June 202021 Public Debt Summary
- End June 2022 Public Debt Summary
- ZESCO Integrated Report 2020
- ZESCO Integrated Report 2018
- ZESCO Integrated Report 2015 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
Zambia Electricity Supply Corp. (ZESCO)
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