Active Mixed AidData Chinese Aid

China Eximbank provides $207.9 million buyer’s credit loan for Vocational Training Institute Construction Project

$207.92M USD

Funder	Export-Import Bank of China (China Eximbank)
Recipient Organization	Government of Côte d'Ivoire (Ivory Coast)
Country	Cote d'Ivoire
Start Date	Nov 08, 2019
End Date	Aug 12, 2032
Duration	4,661 days
Number of Grantees	1
Roles	Recipient
Data Source	AidData Chinese Aid
Grant ID	`92345`

Grant Description

China Eximbank provides $207.9 million buyer’s credit loan for Vocational Training Institute Construction Project On November 8, 2019, China Eximbank and the Government of Côte d'Ivoire signed a $207,923,133.20 (CFA 124,575,720,094.18) buyer’s credit loan (BCL) agreement for the Vocational Training Institute Construction Project.

📋 Loan / Grant Terms

💰 Loan Amountare unknown

However, it is known that the borrower is expected to use the proceeds of the loan to finance 85% of the cost of a $244,264,542.56 (CFA 146,559,670 642.18) commercial contract (ID# AIPEC/CIZ/16M1096) between AVIC-INTL Project Engineering Company and Government of Côte d'Ivoire, which was signed on December 29, 2017.

It is also known that the borrower purchased export buyer’s credit insurance from Sinosure.

According to the Government of Côte d'Ivoire’s Aid Management Platform (AMP), the China Eximbank loan had achieved a 48.8% disbursement rate (CFA 60,852,271,948 out of CFA 124,575,720,094.18) as of December 31, 2023.

China Eximbank made eight loan disbursements worth CFA 60,852,271,948 in 2021, 2022, and 2023: a CFA 25,328,655,081 loan disbursement on March 31, 2021, a CFA 24,826,651,143 loan disbursement on August 31, 2022, a CFA 3,236,780,204 disbursement on April 30, 2023, a CFA 2,459,390,794 disbursement on May 31, 2023, a CFA 722,105,951 disbursement on June 30, 2023, a CFA 1,392,018,079 disbursement on August 31, 2023, a CFA 887,352,429 disbursement on November 30, 2023, a CFA 1,999,318,267 disbursement on December 31, 2023, a CFA 4,621,655,054 disbursement on March 31, 2024 and a CFA 2,687,281,338 disbursement on July 31, 2024.

The purpose of the project is to design and construct 7 vocational training centers: the City of Professional Training of Abobo (La Cité de la Formation Professionnelle d'Abobo); the Yamoussoukro Vocational High School (Le Lycée professionnel de yamoussoukro); the multisectoral center of Korhogo (Le centre multisectoriel de Korhogo); the Gbéléban vocational training center (Le centre de formation professionnelle de Gbéléban); the professional training center of Tiébissou (Le centre de formation professionnelle de Tiébissou); the multisectoral center of Bouaké (Le centre multisectoriel de Bouaké); and Kong Vocational High School (Le Lycée professionnel de Kong).

The project also involves a ‘training of the trainers’ component to assist with the operations and maintenance of the 7 centers. AVIC-INTL Project Engineering Company is the contractor responsible for project implementation. A foundation stone laying ceremony took place on January 24, 2022.

Construction of the Gbéléban vocational training center (Le centre de formation professionnelle de Gbéléban) in the Denguélé region commenced on August 9, 2022; construction of the Kongo and Berebon vocational training centers in northern Côte d'Ivoire had commenced as of September 20, 2022.

Then, on April 13, 2023, the Minister of Technical Education, Vocational Training and Apprenticeship, N'Guessan Koffi, visited the future site of vocational training center in Yamoussoukro. According to the AMP, the project’s originally expected completion date was December 31, 2026. However, the 7 vocational training centers were originally scheduled to open in January 2025.

This project has encountered several implementation obstacles.

The cost (CFA 1,728,888,540) of connecting the 7 vocational centers to electricity and water supply (CIE and SODECI) networks was not included in the project cost estimate.

However, the Ivorian Ministry of Finance and Budget (MFB) provided an additional CFA 1,728,888,540 on November 11, 2024 for this purpose.

Another implementation obstacle was the Ivorian Government's non-compliance with the counterpart payment (contribution) schedule in accordance with the terms and conditions in the China Eximbank loan agreement, which stipulates the loan disbursements are conditional upon the Ivorian Government meeting its counterpart contribution requirements.

📋 Staff Comments

The French project title is Projet de construction de 7 établissements de formation professionnelle_ AVIC _Crédit acheteur or Construction et Equipement de (07) Etablissements de Formation Professionnelle. The Chinese project title is 科特迪瓦职业培训学校项目.
The system identification number for this project in the Government of Côte d'Ivoire’s Aid Management Platform (AMP) is 1120071327489. The AMP project code is 78098001143.
This China Eximbank loan is not included in the database of Chinese loan commitments that SAIS-CARI released in July 2020. Nor is it included it in the China’s Overseas Development Finance Dataset that Boston University's Global Development Policy Center published in December 2020.
The commercial contract can be accessed in its entirety via https://www.dropbox.com/s/quz9mtrffo3u4vg/1_Contrat%20du%20projet%20d%C3%A9finitif%20sign%C3%A9%20par%20trois%20parties-20171229.pdf?dl=0.
The AMP identifies the loan commitment date as November 8, 2019. However, there are some indications that the loan agreement may have been finalized as late as 2021. This issue warrants further investigation.
This loan appears to be classified in the World Bank's Debtor Reporting System (DRS) as a loan issued by a 'private' creditor in China, which suggests that it may have been issued as a syndicated loan by China Eximbank and a Chinese state-owned commercial bank. This issue warrants further investigation.
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 2.5-years in 2019. AidData estimates the grace period of the loan that supported the Vocational Training Institute Construction 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=08. 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 14.9999-years in 2019. AidData estimates the maturity of the loan that supported the Vocational Training Institute Construction 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 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 2019. AidData estimates the interest rate of the loan that supported the Vocational Training Institute Construction 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

Projet de construction de 7 établissements de formation professionnelle_ A VIC _Crédit acheteur
Projet de construction de 7 établissements de formation professionnelle_ AVIC _Crédit acheteur, contract, cote d'lvoire
Formation professionnelle : le Premier ministre pose la première pierre d’un projet de construction de 7 établissements
FORMATION PROFESSIONNELLE : LE PREMIER MINISTRE PATRICK ACHI LANCE LES TRAVAUX DE CONSTRUCTION DU CENTRE DE FORMATION TECHNIQUE DE GBELEBAN
中企承建科特迪瓦职业培训学校项目举行开工仪式
中企承建科特迪瓦职业培训学校项目举行开工仪式
中企承建科特迪瓦职业培训学校项目举行开工仪式
科特迪瓦职业培训学校项目成功举办开工仪式
AUDIENCE DU SECRETAIRE D’ETAT BRICE KOUASSI ACCORDEE AU GROUPE CHINOIS AVIC INTERNATIONAL CORPORATION
Projet de construction de 7 établissements de formation professionnelle_ A VIC _Crédit acheteur
航空工业海外项目迪亚博职业培训学校举行奠基仪式
Côte d’Ivoire – Lycée Professionnel de Yamoussoukro : Le ministre visite le chantier
AMP Record April 2024 Projet de construction de 7 établissements de formation professionnelle_ AVIC _Crédit acheteur
FORMATION : LE PREMIER MINISTRE PATRICK ACHI POSE LA PREMIERE PIERRE D’UN LYCEE PROFESSIONNEL A YAMOUSSOUKRO
中国进出口银行融资支持的科特迪瓦职业培训学校项目孔戈和贝雷邦校区开工
Côte d’Ivoire : la Chine finance la construction de 7 écoles techniques et professionnelles
METFPA : Cérémonie de Réception des Formateurs Revenus de Chine après Quatre Mois de Formation. N’Guessan KOFFI (Ministre): « Le projet AVIC s’inscrit dans la mise en œuvre des deux (02) programmes de l’ACT et de l’E2C »
Vocational Training Institute Construction
January 2025 AMP Record -- Projet de construction de 7 établissements de formation professionnelle_ AVIC _Crédit acheteur pdf 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.

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Government of Côte d'Ivoire (Ivory Coast)

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