Active Mixed AidData Chinese Aid

Bank of China provides $276.9 million buyer’s credit loan for Solar Power Production Project

$276.98M USD

Funder	Bank of China (BOC)
Recipient Organization	Government of Nigeria
Country	Nigeria
Start Date	Jan 01, 2023
End Date	Jan 29, 2029
Duration	2,220 days
Number of Grantees	1
Roles	Recipient
Data Source	AidData Chinese Aid
Grant ID	`108140`

Grant Description

Bank of China provides $276.9 million buyer’s credit loan for Solar Power Production Project In 2023, The Government of Nigeria signed a $276,981,586.50 buyer’s credit (loan) agreement with Bank of China for the Solar Power Production Project.

📋 Loan / Grant Terms

💰 Loan Amountare unknown

However, it is known that the borrower was expected to use the proceeds of the loan to finance 85% of the cost of a $325,860,690 commercial contract between the Government of Nigeria’s National Agency for Science and Engineering Infrastructure (NASENI) and China Great Wall Industry Corporation (CGWIC).

The purpose of the project is to (a) construct a solar cell production plant in Gora within Nasarawa state (with four main production sections on 15.8 hectares of land and a vertically integrated supply chain with an annual production of 1,000 tons of polysilicon, 50MW of ingot, 50MW of wafers and 50MW of solar cells); (b) construct an electric power transformer production plant; and (c) construct a high-voltage testing laboratory.

These three project components cost $171,970,000, $123,990,000 and $29,900,690, respectively. CGWIC is the EPC contractor responsible for implementation. A formal groundbreaking ceremony for the project took place on March 23, 2023.

📋 Staff Comments

1. The loan is described by multiple sources as being financed by the China-Africa Development Fund (CADF) through Bank of China, which suggests that the Bank of China may have managed the loan through an entrusted lending arrangement in which CADF is the official lender of record. This issue warrants further investigation.

📚 Sources & References

SENATE OF THE FEDERAL REPUBLIC OF NIGERIA VOTES AND PROCEEDINGS Wednesday, 15th December, 2021
SENATE APPROVES BUHARIÂ€™S $5.8BN 2018-2020 EXTERNAL BORROWING REQUEST
Nigeria breaks ground on US$171 million solar cell production plant
Groaning Under the Burden of Loan Approved by N’Assembly
NASENI breaks ground for $325 million solar cell factory in Nasarawa State
Nigeria partners China for world-class transformer plant
Osinbajo Lays Foundation For $171m Solar Cell Plant In Nigeria
VP Osinbajo lays foundation of first Solar Cells Production Plant
Nigeria to finance 15 projects through multilateral institutions
NASENI IN CHINA: AGENCY SIGNS MOUs AND LETTERS OF INTENT FOR NEW PROJECTS AND INVESTMENT IN NIGERIA VALUED AT SIX (6) BILLION U.S. DOLLARS
NASENI Begins $325.8m Solar Cells Plant Project 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.