Completed Mixed AidData Chinese Aid

China Eximbank provides $74.4 million buyer's credit loan for Lots 1, 3, 4, and 5 of Addis Ababa–Djibouti Railway Power Supply Project (Linked to Record ID#30171)

$74.49M USD

Funder	Export-Import Bank of China (China Eximbank)
Recipient Organization	Ethiopian Electric Power Corporation (EEPCo)
Country	Ethiopia
Start Date	Sep 04, 2015
End Date	Jun 09, 2026
Duration	3,931 days
Number of Grantees	1
Roles	Recipient
Data Source	AidData Chinese Aid
Grant ID	`91818`

Grant Description

China Eximbank provides $74.4 million buyer's credit loan for Lots 1, 3, 4, and 5 of Addis Ababa–Djibouti Railway Power Supply Project On September 4, 2015, China Eximbank and the Ethiopian Electric Power Corporation (EEPCo) signed a buyer's credit (loan) agreement worth $74,485,833.44 for the Addis Ababa–Djibouti Railway Power Supply Project (Lots 1, 3, 4, and 5).

📋 Loan / Grant Terms

💰 Loan Amountincluded a 17

📅 Maturity17.015 years

⏳ Grace Period3.5 years

💹 Interest Rate8.76%

The loan's first and last scheduled principal payment dates were March 4, 2019 and September 4, 2032, respectively. Its first and last scheduled interest payment dates were September 4, 2018 and September 4, 2032, respectively.

The Government of Ethiopia issued a sovereign guarantee and Sinosure provided a credit insurance policy in support of the loan.

The purpose of the project was to electrify several sections (Lot 1, 3, 4, and 5) of the Addis Ababa–Djibouti Railway.

Lot 3 involved the construction of a new 10.6 km 230kV double-circuit double-bundle transmission line, the construction of three 230kV single-circuit double-bundle transmission lines (measuring 73.25 km in length), the construction of a new 132.21 km 230kV transmission line, and the expansion of an existing 230kV substation.

Lot 4 involved the construction of a 108 km single-circuit transmission line, using twin-bundled conductors (180mm2). The scope of work for Lots 1 and 5 are unknown. China Electric Power Equipment and Technology Co. Ltd. (CET) was the general EPC contractor responsible for project implementation.

Shanghai Electric Power T&D Engineering Co., Ltd. and Sichuan Electric Power Transmission and Transformation Construction Co., Ltd. were also involved (most likely as subcontractors) in implementation. The project was completed and put into operation in 2017.

There are some indications that the China Eximbank loan for the Addis Ababa–Djibouti Railway Power Supply Project may have financially underperformed vis-a-vis the original expectations of the lender.

According to the Government of Ethiopia’s Aid Management Platform, as of September 2019, ICBC suspended about $67 million worth of loan disbursements 'due to [the] cross-default situation of the country’ (see Record ID#58616).

Then, in August 2021, China Eximbank withheld $339 million loan disbursements for 12 projects and halted project implementation due to Government of Ethiopia’s rapidly dwindling foreign exchange reserves and debt sustainability challenges.

📋 Loan / Grant Terms

📅 Maturity5 years

⏳ Grace Period1 year

Then, after considerable delay, the G20 Common Framework (CF) creditor committee for Ethiopia convened in September 2021, with the French Government and the Chinese Government serving as co-chairs. The CF debt rescheduling talks were still ongoing in mid-2023.

📋 Staff Comments

The system identification numbers for this project in the Government of Ethiopia’s Aid Management Platform (AMP) are 87143436111871, 87143436111872, 87143436111865, and 87143436111870.
The loan identification number in the Government of Ethiopia’s Debt Management and Financial Analysis System (DMFAS) is 20896001 and the corresponding project name in DMFAS is ‘Ethio Djibuti Railways power S’. 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=03. As of September 2024, in the Chinese Loans to Africa (CLA) Database that is maintained by Boston University's Global Development Policy Center, the face value of this China Eximbank loan was identified as $31 million. AidData relies on the face value of the loan ($74,485,833.44) that is identified in the Government of Ethiopia’s Debt Management and Financial Analysis System (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=04. The Chinese project title is 埃塞俄比亚至吉布提铁路（简称“埃吉铁路”）的供电配套项目(第三标段) or 埃塞俄比亚-吉布提铁路电力输送变电站改造扩容项目.
Mesfin Tafesse & Associates advised China Eximbank on the transaction.

📚 Sources & References

Addis Ababa - Djibouti Railway Power Supply -Lot 1
BANKING AND FINANCE
Addis Ababa-Djibouti Railway Power Supply Project（lot 2 and lot 3）in Ethiopia
Djibouti: Ethio-Djibouti Railway Power Supply 85 Per Cent Complete
Ethiopia-Djibouti Railway Power Supply Project
中国进出口银行上海分行向埃塞国家电力公司提供出口买方信贷美元贷款
埃塞俄比亚-吉布提铁路供电项目lot2及lot3标段, 2015
Ethiopia –Djibouti LOT2 & LOT3 of Railway Power Supply Subjects.
埃塞俄比亚-吉布提铁路供电项目lot2及lot3标段
Addis Ababa - Djibouti Railway Power Supply Lot-5
Shaanxi Branch
Addis Ababa - Djibouti Railway Power Supply - Lot 3
Rail News & Development - Réseau ferroviaire: Infos & Développement - Page 2
Signature d’un accord entre l’EDD et Shanghai Electric pour la construction d’une nouvelle ligne électrique reliant Ali-Sabieh à Nagad
REVUE A MI-PARCOURS DU PLAN NATIONAL DE DEVELOPPEMENT STRATEGIE DE CROISSANCE ACCELEREE ET DE PROMOTION DE L’EMPLOI SCAPE 2015-2019
Djibouti
Chinese firm sign power project deal
Empowering Water with Intelligence: Reviving Business Through Wisdom
Ethiopia-Djibouti Railway Power Supply Project
Addis Ababa - Djibouti Railway Power Supply Lot-4
August 2024 Ethiopia's Borrowings and Borrowing Terms from 'Private' Sector PRC Creditors
MTA Banking & Finance
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
MOFED Loan-Level Data on Borrowing Terms and Loan Performance September 2024_OTHER_PUBLIC 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

Ethiopian Electric Power Corporation (EEPCo)

Interested in applying for this grant?

Complete our application form to express your interest and we'll guide you through the process.

Apply for This Grant