Bank of China provides EUR 111.9 million loan for Phase 2 of Ministry of Interior and Security Unified Communication System Project (Linked to Record ID#89415 and ID#92201)

📋 Staff Comments

1. The French project title is Projet d'implantation d'un système de défense_ Phase II. The Chinese project title is 国防部统一通讯二期工程项目 or 署的科特迪瓦国防部统一通讯二期工程项目.
2. The AMP system identification number for the Bank of China loan is 1120071335705. The AMP also suggests that ICBC may have co-financed the loan. This issue merits further investigation.
3. This Bank of China loan is not included in the Chinese Loans to Africa (CLA) database that is managed by the Global Development Policy Center at Boston University and SAIS-CARI.
4. Bank of China also financed Phase 1 of the Ministry of Interior and Security Unified Communication System Project (as captured via Project ID#89415 and Project ID#92201).
5. In December 2019, Côte d'Ivoire’s Ministry of Interior and Security and China Railway Construction International Group reportedly signed a EUR 124 million EPC+F contract for Phase 2 of the Ministry of Interior and Security Unified Communication System Project. One source suggests that Côte d'Ivoire’s Ministry of Defense was responsible for 15% of the cost of an EPC+F contract and China Railway Construction International Group was responsible for obtaining a commercial loan for financing the remaining 85% of the project cost (backed by a sovereign guarantee from the Government of Côte d'Ivoire). However, the source does not identify the financier responsible for providing a commercial loan to China Railway Construction International Group (backed by a sovereign guarantee from the Government of Côte d'Ivoire) is unknown. This issue merits further investigation.
6. The precise project implementation start date is unknown. For the time being, AidData relies on the first loan disbursement date (December 31, 2021) as a proxy for the project implementation start date. This issue warrants further investigation.
7. The face value of the loan is recorded in the AMP as CFA 73,443,492,550.
8. However, the loan was almost certainly denominated in EUR, so AidData has used the prevailing CFA-to-EUR exchange rate (1 CFA = 0.001524 EUR 1) at the time of the loan commitment to estimate the EUR face value of the loan (EUR 111,927,882.64).
9. According to the World Bank's Debtor Reporting System (DRS), the weighted average grace period of all ‘private’ sector lending from all Chinese creditors to government and government-guaranteed borrowing institutions in Côte d'Ivoire was 3.4166-years in 2020. AidData estimates the grace period of the Bank of China loan that supported Phase 2 of the Ministry of Interior and Security Unified Communication System Project by using this figure. See https://www.dropbox.com/scl/fi/i7f56vi0ix8drznpbaczg/Weighted-average-borrowing-terms-from-Chinese-Lenders-to-Ivory-Coast-April-2024-IDS-Data-Extraction.xlsx?rlkey=0uj6y8don6vdg39v28f1y4nwz&dl=09. According to the World Bank's Debtor Reporting System (DRS), the weighted average maturity of all ‘private’ sector lending from all Chinese creditors to government and government-guaranteed borrowing institutions in Côte d'Ivoire was 14.9166-years in 2020. AidData estimates the maturity of the Bank of China loan that supported Phase 2 of the Ministry of Interior and Security Unified Communication System Project by using this figure. See https://www.dropbox.com/scl/fi/i7f56vi0ix8drznpbaczg/Weighted-average-borrowing-terms-from-Chinese-Lenders-to-Ivory-Coast-April-2024-IDS-Data-Extraction.xlsx?rlkey=0uj6y8don6vdg39v28f1y4nwz&dl=010. According to the World Bank's Debtor Reporting System (DRS), the weighted average interest rate of all ‘private’ sector lending from all Chinese creditors to government and government-guaranteed borrowing institutions in Côte d'Ivoire was 2.7% in 2020. AidData estimates the interest rate of the Bank of China loan that supported Phase 2 of the Ministry of Interior and Security Unified Communication System Project by using this figure. See https://www.dropbox.com/scl/fi/i7f56vi0ix8drznpbaczg/Weighted-average-borrowing-terms-from-Chinese-Lenders-to-Ivory-Coast-April-2024-IDS-Data-Extraction.xlsx?rlkey=0uj6y8don6vdg39v28f1y4nwz&dl=0

📚 Sources & References

• Defense system implementation project_ Phase II
• Projet d'implantation d'un système de défense_ Phase II
• 铁建国际签约科特迪瓦国防部统一通讯二期工程项目商务合同
• 中国铁建海外订单纷至沓来：铁建国际、中土集团、中铁十一局打前阵
• 海外项目：中铁建、中土集团、中铁十一局签署新项目
• Projet d'implantation d'un système de défense_ Phase II
• April 2024 AMP Record for Projet d'implantation d'un système de défense_ Phase II 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.