Completed Development AidData Chinese Aid

Chinese Government provides RMB 362.1 million interest-free loan for Lot 2 of Akassato-Bohicon Road Rehabilitation Project (Linked to Record ID#30834, #58807, and #58722)

¥362.1M RMB

Funder	China Ministry of Commerce
Recipient Organization	Government of Benin
Country	Benin
Start Date	Jan 01, 2013
End Date	Nov 26, 2029
Duration	6,173 days
Number of Grantees	1
Roles	Recipient
Data Source	AidData Chinese Aid
Grant ID	`73406`

Grant Description

Chinese Government provides RMB 362.1 million interest-free loan for Lot 2 of Akassato-Bohicon Road Rehabilitation Project On 5 October, 2012, the Chinese Government and the Government of Benin signed a CFA 129 billion preferential loan framework agreement for the Akassato-Bohicon Road Rehabilitation Project.

📋 Loan / Grant Terms

📅 Maturity20 years

⏳ Grace Period7 years

In 2013, China’s Ministry of Commerce and the Government of Benin signed an RMB 141 million interest-free loan agreement for Lot 1 and an RMB 362.1 million interest-free loan agreement for Lot 2.

📋 Loan / Grant Terms

💰 Loan Amountagreement [CHINA EXIMBANK GCL 2013 NO

📅 Maturity20 years

⏳ Grace Period7 years

💹 Interest Rate1%

The proceeds of the MOFCOM loan for Lot 1 were to be used by the borrower to finance a commercial contract with China Geo-Engineering Corporation (CGC).

The proceeds of the MOFCOM loan for Lot 2 were to be used by the borrower to finance a commercial contract with Chongqing International Construction Corporation (CICO) worth 30 billion CFAF.

The proceeds of the GCL were to be used by the borrower to finance a commercial contract (ID#74/MTPT/DNCMP/SP) between Benin’s Ministry of Public Works and Transportation and China Xinxing Group General Corporation, which was signed on 5 March, 2013.

The Akassato-Bohicon Road Rehabilitation Project involved the rehabilitation of a 103.8 km road segment along the No. 2 Interstate Highway from Akassato to Bohicon. The project was divided into three lots. Lot 1 involved the rehabilitation of a 12.3 km section from Akassato to Glo-Djigbé (PK 14 + 200 to PK 26 + 500).

Lot 2 involved the rehabilitation of a 19.26 km section from Glo-Djigbé to Allada (PK 26 + 500 to PK 45 + 760). Lot 3 involved the rehabilitation of a 73 km section from Allada to Bohicon (PK45 + 760 to PK1 17 + 865).

A formal groundbreaking ceremony for Lot 1 took place on January 5, 2013; however, Lot 1 construction did not commence until April 30, 2013. Lot 1 was officially handed over to the Government of Benin on August 12, 2015. A formal groundbreaking ceremony for Lots 2 and 3 was held on 16 January, 2014.

Lot 2 was officially handed over to the Government of Benin on 28 September, 2016. Lot 3 was completed in March 2016. Record ID#30834 captures the CFA 129 billion preferential loan framework agreement. Record ID#58722 captures the RMB 141 million interest-free loan from MOFCOM for Lot 1. This project captures the RMB 362.1 million interest-free loan from MOFCOM for Lot 2.

Record ID#58807 captures the RMB 800 million interest-free loan from China Eximbank for Lot 3.

📋 Staff Comments

The French project title is Projet de Réhabilitation de la route Akassato-Bohicon. The Chinese project title is 阿卡萨多-博依贡公路 or 贝宁阿卡萨多—博伊贡公路项目 or 阿卡萨托—博希孔公路修复工程.
According to the Parliament of Benin, the Chinese Government provided RMB 503.1 million of loans for Lot 1 and Lot 2. The face value of the loan that supported Lot 1 was RMB 141 million, so AidData assumes that the face value of the loan that supported Lot 2 was RMB 362.1 million.
Since loan terms for the interest-free loan are unavailable, AidData has set maturity period to 20-years by default and grace period to 10-years by default per China's Foreign Assistance White Paper (http://www.cidca.gov.cn/2018-08/06/c_129925064_3.htm) which states that the maturity period of interest-free loans is 20-years, with a drawdown period of 5-years, grace period of 5-years, and repayment over 10-years. AidData treats the drawdown period as providing 5-years of additional grace.

📚 Sources & References

Benin gets 130 mln USD loan from China for road rehabilitation
驻贝宁大使刁鸣生出席中国援建项目竣工仪式
Portefeuille détaillé des Projets Actifs au 30 septembre 2016
刁鸣生大使出席援贝宁阿-博公路二标段交接仪式
驻贝宁大使刁鸣生视察贝宁阿卡萨多—博伊贡公路项目
DIRECTION GENERALE DE LA PROGRAMMATION ET DU SUIVI DES D INVESTISSEMENTS PUBLICS
Réhabilitation de la route Akassato-Bohicon:Le lancement des travaux des lots 2 et 3 prévu pour ce mois (Lire un extrait du communiqué du Conseil des ministres)
China to invest 288 mln USD in road projects in Benin
Road Rehabilitation Project Akassato Bohicon LOT 1: 12.3km
Remise du deuxième lot de la route Akassato-Bohicon
刁鸣生大使出席援贝宁阿-博公路二标段交接仪式
贝宁政府公共工程部致函表彰新兴集团并颁发嘉奖令
Passive agents? Bureaucratic agency in Africa-China negotiations: A case study of Benin.
Road Rehabilitation Project Akassato Bohicon LOT 1: 12.3km
Assemblée Nationale : adoption du projet de financement partiel de réhabilitation de la route Akassato-Bohicon
Benin-Cotonou: EEF — Bauleitung und Bauaufsicht für die Sanierungsarbeiten der zwischenstaatlichen Nationalstraße Nr. 2
Abschnitt: Allada — Bohicon (73 km)
LES TRAVAUX DE LA ROUTE AKASSATO-BOHICON DEMARRENT ENFIN
Akassato-Bohicon: démarrage du tronçon lot 2 du projet de réhabilitation
DECRET N'2013-343 DU 30 AOUT 2013
驻贝宁大使陶卫光出席中国援贝阿—博公路二、三标段开工仪式
Chinese Loans to Africa Database
Benin 2019 Bond Prospectus
DECRET N'2013-343 DU 30 AOUT 2013
Allocution de Monsieur DIAO MINGSHENG, ambassadeur extraordinaire et plénipotentiaire de la République Populaire de Chine en République du Bénin, lors de la cérémonie de remise du projet de la réhabilitation de la route AKASSATO-BOHICON LOT 1 et du projet d'aménagement paysager et de canal de l'échangeur de Godomey financés par le gouvernement chinois
Liste de prêts des institutions gouvernementales chinoises de 2000 à 2017 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.