Active Mixed AidData Chinese Aid

CRSG provides $165 supplier credit for 62 km Wellington-Masiaka PPP Toll Highway Project

$165M USD

Funder	China Railway Engineering Corporation 7th Bureau (CREC7)
Recipient Organization	China Railway Seventh Group (SL) Co. Ltd.
Country	Sierra Leone
Start Date	Mar 03, 2016
End Date	Apr 02, 2028
Duration	4,413 days
Number of Grantees	1
Roles	Recipient
Data Source	AidData Chinese Aid
Grant ID	`73307`

Grant Description

CRSG provides $165 supplier credit for 62 km Wellington-Masiaka PPP Toll Highway Project On December 22, 2015, the Government of Sierra Leone (represented by the Ministry of Works, Housing and Infrastructure) and China Railway Seventh Group (SL) Co.

Ltd. -- a special purpose vehicle and wholly-owned subsidiary of China Railway Seventh Group -- signed a concession contract for the financing, design, construction, operation and maintenance of the 62 km Wellington-Masiaka PPP Toll Highway Project.

Then, on March 3, 2016, CRSG (a subsidiary of China Railway Engineering Corporation) provided a $165 million supplier credit to China Railway Seventh Group (SL) Co. Ltd. for the 67 km Wellington-Masiaka Toll Highway Project.

📋 Loan / Grant Terms

💰 Loan Amountcarried a 27-year maturity

📅 Maturity27 years

⏳ Grace Period4 years

💹 Interest Rate6%

It was to be repaid by charging motorists using the Wellington-Masiaka motorway at three toll stations (Jui, Mile 38, and Masiaka).

The 62 km Wellington-Masiaka Toll Highway Project involved the upgrading of a 62 km road from Wellington (Yonibana) to Masiaka to a four-lane dual carriageway.

It was to be undertaken as a Public-Private Partnership (PPP) between the Government of Sierra Leone and the Chinese Railway Seventh Group under a 25-year build, own, operate and transfer (BOOT) agreement (extended to 27-years later in 2017). The project officially commenced on April 25, 2016.

On June 4, 2020 members of the Ministry of Works and Public Assets (MWPA) and Sierra Leone Roads Authority (SLRA) toured the Wellington-Masiaka Road Construction site.

They noted COVID-19 as a major hinderance to the projects progression, as the project would have been completed in April 2020. As of June 4, 2020, the project is 70% completed.

After completing the first phase of the construction of the project during the second quarter of 2017, China Railway Seventh Group started trial operations in August 2017. It also began collecting tolls in 2017.

Then, in 2018, the Sierra Leone Road Transport Authority announced a technical and financial audit into the project and Parliament referred the report to the Anti-Corruption Commission (ACC) to take action. The project is known to have been completed by March 2024, but the exact completion date is unclear.

📋 Staff Comments

This project is also known as the 67 km Masiaka-Yonibana Highway Project. The Chinese project title is 弗里敦至马塞亚卡收费高速路项目 or 弗-马高速公路项目 or 弗里敦至马塞亚卡收费高速路项目 or 塞拉利昂弗里敦东区市政道路改造升级项目.
The December 22, 2015 concession contract can be accessed in its entirety via https://www.dropbox.com/scl/fi/gy0m3wt06qqupljcdzscx/SLRA_CRSG_Concession-Contract.pdf?rlkey=y6xibsul880k7d0gtpd7wle27&dl=0 and https://www.parliament.gov.sl/loans.html3. According to Boston University's Global Development Policy (GDP) Center, there is 'evidence that the government must take over the loan if the company defaulted on the loan.' See https://www.bu.edu/gdp/files/2022/11/GCI_PB_012_EN_FIN.pdf

📚 Sources & References

$150 million Chinese toll road agreement gets parliamentary nod
AS HE LAUNCHES THE WELLINGTON-MASIAKI PROJECT
I WILL NOT BE DISTRACTED
Chinese Loans to Africa During the COVID-19 Pandemic
Chinese toll road leads to controversy in Sierra Leone
CONCESSION CONTRACT FOR THE FINANCE
DESIGN
CONSTRUCTION
OPERATION AND MAINTENANCE OF THE WELLINGTON-MASIAKA ROAD BETWEEN THE GOVERNMENT OF SIERRA LEONE (Represented by the Ministry of Works
Housing and Infrastructure) AND CHINA RAILWAY SEVENTH GROUP (CRSG)
FOURTH SESSION 11TH DECEMBER 2015 T0 15TH DECENBER 2016
Interview by Calabash to the Spokesperson of the Chinese Embassy in Sierra Leone on a China-Related Report by the Institute for Governance Reform
Loans
Grants And Treaties Detail
OFFICIAL HANSARD REPORT FIRST SESSION FIRST MEETING THURSDAY, 29TH FEBRUARY, 2024
Risky Business: New Data on Chinese Loans and Africa’s Debt Problem
S i e r r a L e o n e N e w s : G o v t . de f e n ds t o l l r o a d f e e s
SECTORS IN PERSPECTIVE
Sierra Leone: MWPA
SLRA Inspect Wellington-Masiaka Toll Road
Sierra Leone: MWPA
SLRA Inspect Wellington-Masiaka Toll Road
SIXTH PARLIAMENT OF THE SECOND REPUBLIC OF SIERRA LEONE FIRST SESSION, 2023/2024 FIRST MEETING OF PARLIAMENT VOTES AND PROCEEDINGS OF THE THIRTY-EIGHT SITTING
SLRA_CRSG_Resolution Mtg_Wellington_Masiaka
THE CUMMINGS’ CONNECTION
The Wellington- Masiaka toll road
WAOMC Announces Adjusted Wellington-Masiaka Road Toll Gate Tariffs
Wellington – Masiaka Toll Road Concession Agreement: Value For Money?
Will cash-strapped motorists in Sierra Leone pay $4.50 a day for the use of a new toll motorway?
中国在非洲的超牛项目大盘点
中铁七局与塞拉利昂政府签署塞首条收费高速公路项目协议
对外投资合作国别（地区）指南-塞拉利昂
弗里敦至马塞亚卡收费高速路项目
沈晓凯参赞赴弗-马高速公路调研
驻塞拉利昂大使赵彦博和塞总统科罗马共同出席塞首条收费高速公路开工典礼
驻塞拉利昂大使赵彦博和塞总统科罗马共同出席塞首条收费高速公路开工典礼
驻塞拉利昂大使赵彦博跟塞总统科罗马独特缺席塞首条收费高速公路 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.