Active Mixed AidData Chinese Aid

CPFHK provides $840 million loan for Benin Section of Niger-Benin Oil Pipeline Construction Project (Linked to Record ID#58435)

$840K USD

Funder	CNPC Finance (HK) Limited
Recipient Organization	West African Oil Pipeline (Bénin) Company S.A. (WAPCO Bénin)
Country	Benin
Start Date	Jan 01, 2021
End Date	Aug 14, 2033
Duration	4,608 days
Number of Grantees	1
Roles	Recipient
Data Source	AidData Chinese Aid
Grant ID	`96034`

Grant Description

CPFHK provides $840 million loan for Benin Section of Niger-Benin Oil Pipeline Construction Project On January 23, 2019, the State of Niger and the Republic of Benin signed a bilateral agreement on the Niger-Benin Oil Pipeline Construction Project.

Then, on August 5, 2019, the Republic of Benin entrusted the financing, construction, and operation of the Benin section of the Niger-Benin Oil Pipeline to a special purpose vehicle known as the West African Oil Pipeline (Bénin) Company S.A. [WAPCO Bénin or 西非原油管道（贝宁）股份有限公司 in Chinese].

The total cost of the Benin Section of the Niger-Benin Oil Pipeline Construction Project is $1.05 billion (CFAF 608 billion) and it is being financed according to a debt-to-equity ratio of 80:20.

CNPC Finance (HK) Limited (CPFHK) — a subsidiary of the China National Petroleum Corporation (CNPC) — issued a loan worth an estimated $840 million to WAPCO Bénin for the Benin Section of the Niger-Benin Oil Pipeline Construction Project. The loan’s estimated interest rate is 8.05%.

📋 Loan / Grant Terms

💰 Loan Amountare unknown

The purpose of the project is to construct the 675 km Benin section of the 1,980 km Niger-Benin Oil Pipeline, which connects Niger's Agadem Rift Basin to the Port of Sèmè export terminal in the town of Sèmè-Kpodji. The Benin section of the pipeline consists of a 660 km overland subsection and a 15 km underwater subsection.

The project scope also includes the construction of two pumping stations — one in Gogounou and the other in Tchatchou. Upon completion, the pipeline is expected to have a capacity of 90,000 barrels per day (bpd).

The Government of Benin expects to receive $884.6 million in transit fees during the pipeline’s period of operation and $109 million in tax revenues (VAT and other fees and taxes). The construction of the pipeline is also expected to generate additional traffic to the Port of Cotonou in Benin. The port is expected to process up to 300,000 tons of goods once the pipeline becomes operational.

China Petroleum Planning and Engineering Institute (CPPEI) and the China Petroleum Pipeline Engineering (CPPE) are the contractors responsible for project implementation. The project was originally scheduled to commence on March 15, 2020. However, due to the Covid-19 pandemic, construction did not begin until May 20, 2021.

The pipeline was originally scheduled for completion in January 2022.

On October 14, 2022, Chinese state-owned broadcaster CGTN referred to the Niger-Benin Oil Pipeline Construction Project as ‘an integral part of China’s Belt and Road Initiative.’ The Niger section of the project had achieved a 30% completion rate as of October 2022 (see Record ID#58435).

📋 Staff Comments

The CNPC Finance (HK) Limited loan is not captured in the Chinese Loans to Africa Database developed by SAIS-CARI and maintained by the Global Development Policy Center at Boston University.
The face value of the CNPC Finance (HK) Limited loan is unknown. However, given that the total cost of the Benin Section of the Niger-Benin Oil Pipeline Construction Project is $1.05 billion and CNPC Finance (HK) Limited agreed to finance 80% of the project cost with debt, AidData assumes that the face value of the CNPC Finance (HK) Limited loan was roughly equivalent to $840 million. This issue warrants further investigation. Further research is also needed to determine if the CNPC Finance (HK) Limited was supported by any credit enhancements.
The French project title is Projet Pipeline d'Export Niger-Bénin or Projet de Pipeline d'Exportation Niger-Bénin. The Chinese project title is 西非跨国输油管道项目 or 尼日尔―贝宁油管项目 or 尼日尔-贝宁原油外输管道工程 or 阿加德姆二期油田及外输管道建设项目.
Africa Energy Intelligence identifies CNPC Finance (HK) Limited as the lender.
A feasibility study for the Niger-Benin Oil Pipeline Construction Project — undertaken by the China Petroleum Planning and Engineering Institute (CPPEI) and the China Petroleum Pipeline Engineering (CPPE) — recommended that CPFHK lend at an interest rate between 7.9% and 8.2%. As such, AidData has estimated the loan’s interest rate by taking the midpoint of this range (8.05%). See https://www.dropbox.com/scl/fi/i5zizmslevdgckr52izvy/833871.pdf?rlkey=hoi9c2trsf1soj12tb6ro5ysq&dl=06. The precise financial commitment (loan signing) date is unknown. For the time being, AidData assumes a commitment year of 2020 since this was the first year of project implementation.
WAPCO Bénin is a subsidiary of the China National Oil and Gas Exploration and Development Co. (CNODC), which is itself a subsidiary of the China National Petroleum Corporation (CNPC).
The January 23, 2019 bilateral agreement between the Government of Niger and the Government of Benin on the Niger-Benin Oil Pipeline Construction Project can be accessed in its entirety via https://www.dropbox.com/s/2jdcbk00xhwynim/Accord%20Bilat%C3%A9ral%20Niger-B%C3%A9nin.pdf?dl=0.

📚 Sources & References

Accord Bilatéral Niger-Bénin
Libya is losing billions in oil wealth from smuggling and subsidies
Pipeline de pétrole brut:Le chinois CNPC s’installe au Bénin
China Builds 1,980km Oil Pipeline From Niger To Benin Republic
Benin launches its side of Niger-Benin oil pipeline project
Niger-Benin pipeline construction and operation agreement signed between CNPC and Benin
China Petroleum Engineering Units Win USD881 Million West Africa Oil Pipeline Project
Niger-Benin pipeline ceremony due May 20
Chinese company to fund pipeline construction in Benin
Africa's biggest oil pipeline from Niger to Benin takes shape
Niger-Benin Crude Pipeline
Le Président de la République effectue une série des visite dans le Dendi.
Niger to pump more crude as pipeline works accelerate
Monographie Du Niger
听到撒哈拉的呼唤中国石油尼日尔项目一线石油人采访记
驻尼日尔大使张立军出席阿加德姆二期项目开工仪式
中国石油集团工程股份有限公司关于子公司中标项目签订 EPCC 承包合同暨日常关联交易公告
破解创效难题省下真金白银管道局尼日尔管道项目运行侧记
中石油管道局尼日尔-贝宁原油外输管道（尼日尔）项目正式开工
DÉCRET N. 2O2O _ 024 DU 15 JANVIER 2O2O portant transmission à I'Assemblée nationa!e du projet de loi portant régime juridique, fiscal et douanier applicable au Projet de Pipeline d'Exportation Niger-Bénin.
Niger : WAPCo reçoit une autorisation de transport intérieur pour la réalisation du pipeline Niger-Bénin
Construction du pipeline Export Niger-Bénin : Les travaux officiellement lancés
Enquête sur le limogeage du DGA de la société WAPCO : Les milliards de la magouille !
Le Niger attribue à la chinoise Wapco une Autorisation de transport intérieur pour la réalisation du pipeline Niger-Bénin
DOCUMENT DE PROGRAMMATION BUDGÉTAIRE ET ÉCONOMIQUE PLURIANNUELLE 2021-2023
DÉCRET N' 2o2i - 1Bo DU 28 AVRTL 2021 portant réquisition de terrains privés dans le cadre des travaux du projet de construction de pipeline d'exportation Niger-Bénin
TRANSPORT D'HYDROCARBURES : LES TRAVAUX DE CONSTRUCTION DU PIPELINE D'EXPORTATION NIGER-BENIN LANCES CE JEUDI 20 MAI 2021
Afrique de l’ouest – Pipeline Bénin-Niger : le projet de la convention adopté à Niamey
Agadem-Seme pipeline: Patrice Talon speeds up process with CNPC
Export pipeline: CNPC making fast progress with partner CPPE
REQUEST FOR A THREE-YEAR ARRANGEMENT UNDER THE EXTENDED CREDIT FACILITY—PRESS RELEASE; STAFF REPORT; AND STATEMENT BY THE EXECUTIVE DIRECTOR FOR NIGER
NIGER ECONOMIC UPDATE APRIL 2022 Resilience in Uncertain Times: Investing in Human Capital
CNPC and Bazoum to negotiate government stake in Agadem pipeline project
INTERNATIONAL DEVELOPMENT ASSOCIATION PROGRAM DOCUMENT FOR A PROPOSED DEVELOPMENT POLICY CREDIT IN THE AMOUNT OF EURO 156.9 MILLION (US$175.0 MILLION EQUIVALENT)
DÉCRET N' 2021 - 512 DU 06 oCTOBRE 2021 portant mise à disposition à la Société West African Oil Pipeline (Bénin) Company S.A., d'un immeuble du domaine privé de l'Etat pour la construction de son siège dans le cadre du Projet de Pipeline d'Exportation NigerBénin.
BENIN FIFTH REVIEW UNDER THE EXTENDED CREDIT FACILITY ARRANGEMENT
REQUEST FOR EXTENSION
AND REQUEST FOR MODIFICATION OF PERFORMANCE CRITERIA—PRESS RELEASE; AND STAFF REPORT
Niger-Benin Pipeline is 30% complete – Presidency of Niger, 40亿美元！中石油承建尼日尔油田二期及尼贝国际管道举行奠基仪式
Niger-Benin pipeline: CNPC and oil minister meeting ends with plenty still to talk about
WAPCO Benin
CNPC starts construction works on Niger-Benin oil pipeline
尼日尔石油开发有望带动尼经济快速发展
WAPCO Niger
Niger - Le Président Issoufou Mahamadou a procédé mardi au lancement des travaux de construction du Pipeline international Niger-Bénin à Koulélé
新的石油项目将使尼日尔原油产量提高十倍，并建造原油出口输油管道
Chinese launch Benin phase of multi-billion-dollar pipeline
Afrique de l’ouest – Pipeline Bénin-Niger : le projet de la convention adopté à Niamey
LA SOCIÉTÉ WAPCO-NIGER A RÉALISÉ 600 KM SUR LES 2000 KM DU PIPELINE RELIANT LE NIGER AU BÉNIN
Production pétrolière : Lancement des travaux de construction du pipeline Niger-Bénin
Africa's longest oil pipeline takes shape in Niger
PROJET DE CONSTRUCTION ET D’EXPLOITATION DU PIPELINE EXPORT NIGER-BENIN
Niger aims to start oil exports from Benin pipeline in January, leader says
Niger Commissions 2,000-kilometre Crude Oil Pipeline Despite Sanctions
Niger to begin oil exports via Benin pipeline in January 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.