Active Development AidData Chinese Aid

Chinese bank pledges to support EPC+F contract for Port-Bouët Housing Project

Funder	Unspecified Chinese State-owned Bank
Recipient Organization	China Overseas Engineering Group Co., Ltd. (COVEC)\|China Railway Construction Corporation Limited (CRCC)
Country	Cote d'Ivoire
Start Date	Jul 01, 2019
End Date	Feb 06, 2026
Duration	2,412 days
Number of Grantees	1
Roles	Recipient
Data Source	AidData Chinese Aid
Grant ID	`87872`

Grant Description

Chinese bank pledges to support EPC+F contract for Port-Bouët Housing Project On March 5, 2019, Société Ivoirienne de Construction et de Gestion Immobilière (Sicogi) and China Overseas Engineering Group Co.,Ltd. (COVEC) — a subsidiary of China Railway International Group (CRIG) — signed a memorandum of understanding (MOU) for the construction of 2,833 housing units in Port-Bouët.

The signing ceremony was co-chaired by Gan Baixian, President of CRIG, and Bouaké Fofana, CEO of Sicogi. The agreement was signed by Zhang Lankun, CEO of Covec and Souaga Loukou Hyacynthe, director of programs at Sicogi.

Then, on July 3, 2019, COVEC and Sicogi signed a $4.1 billion (RMB 27.965 billion and CFA 2350 billion) EPC+F contract for the Port-Bouët Housing Project.

Under the terms of the EPC+F contract, COVEC agreed to build 50,000 houses at Port-Bouët New City suburban commune of Abidjan. This project also involves the installation of a prefabricated materials plant to service the subregion.

📋 Staff Comments

The Chinese project title is 为科特迪瓦阿比让Port Bouet新城5万套住房项目 or Port Bouet新城5万套住房项目.
The Ivorian government denied the existence of the contract on July 5, 2019. At the same time, it sought to find partners to implement the project.
Under most EPC+F contractual arrangements, a loan is extended to the EPC contractor but with a sovereign guarantee from the host government. Therefore, AidData assumes that the loan to COVEC will be backed by a repayment guarantee from the Government of Cote d'Ivoire (i.e. a sovereign guarantee). It is unclear which Chinese bank will finance the EPC+F contract. This issue warrants further investigation.

📚 Sources & References

CRCC Clinches USD4.1 Billion Construction Project in Côte d'Ivoire
中国铁建新签科特迪瓦新城项目280亿元商务合同, 279亿元！中国铁建在科特迪瓦签约海外最大房建项目
Ivory Coast Seeks Housing Partner as It Denies Chinese Deal
中国铁建签约科特迪瓦房建项目
科特迪瓦政府：中鐵建合同「不存在」
中国铁建(601186.SH)签订279.65亿元的科特迪瓦阿比让Port Bouet新城项目商务合同
Port-Bouët: La Sicogi et Covec signent un protocole d’accord pour 2833 habitations
Côte d’Ivoire
La guerre des banques chinoises
MINISTERE DU COMMERCE
DE l’ARTISANAT ET DE LA PROMOTION DES PME
中国铁建科特迪瓦Port Bouet新城项目签商务合同
海外10个房建项目
中铁建、中土、电建、中国化学等中标新签, 279亿元！中国铁建在科特迪瓦签约海外最大房建项目
China Railways attract Kone's ire over $4 billion contract, 2019 ANNUAL RESULTS ANNOUNCEMENT
CRCC Clinches USD4.1 Billion Construction Project in Côte d'Ivoire
中国铁建股份有限公司新签海外合同公告
LOGEMENTS SOCIAUX : LA SICOGI ET LE GROUPE CHINOIS CHINA RAILWAY CONSTRUCTION CORPORATION ENVISAGENT LA CONSTRUCTION DE 50 000 LOGEMENTS
中国铁建股份有限公司新签海外合同公告 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.