China Eximbank and US Eximbank to Co-Finance?

I just came across this really interesting story of China Eximbank potentially co-financing a project in Ghana with US Eximbank.  Will follow up to see what happened.

MCC8-led Consortium secures US$ 47 million from US EXIM Bank for the Projects in Ghana

Date:2012-3-1   |   Read:1710

Washington, Accra, Hong Kong and Shenzhen--  On February 23, 2012, the Export-Import Bank of the United States (US EXIM Bank) confirmed the basic terms underlying a proposed US$ 47 million loan to finance Sunyani Water Supply System Expansion and Rehabilitation Project (Sunyani Water) and Western Corridor Oil & Gas Enclave Road project (Oil & Gas Road) in Ghana. MCC8 and its US partner—Lemna International, Inc, arrange the loan facilities. According to the agreement between the Export-Import Bank of China (China EXIM Bank) and Ministry of Finance and Economic Planning, Ghana, this debt facility for Sunyani Water will be led by the China EXIM Bank committing US$ 93 million concessionary export buyer’s credit facility (85%) and US EXIM Bank to fund US$ 15 million (15%) with 18 years repayment period and the interest rate 3.17% per annum as counterpart funds. The Oil & Gas Road is one of Twelve (12) eligible projects which have been identified and confirmed for financing under the debt facility of US$ 3 billion approved by Ghana Government and China Development Bank (CDB) on December 16, 2011. CDB provides 85% of the project contract price with 10 years repayment period with 3 years Grace Period and the interest rate 6 month LIBOR plus 2.85% per annum. US EXIM Bank provides US$ 32 million with 15 years repayment period and the interest rate 3.17% per annum as counterpart funds. Senior Vice President of US EXIM Bank, John A. McAdams, said, “Our review of the participant and product information in the application indicates that EXIM Bank is available for this transaction. If, however, the US exporter is facing foreign competition which is supported by foreign export credit facility agency offering more favourable financing terms, EXIM Bank may consider matching those terms.” President of MCC8 International, Dr. He Yu, commented, “One of major factors hindering the execution of the two projects is the contribution of the counterpart funding by Ghana government. The US EXIM Bank loan facilities will help Ghana cover the 15 per cent and quicken the implementation of the two projects.” On July 27, 2011, the Consortium consisting of China MCC20 Group Corp., Ltd. and MCC8 Group Company Limited, represented by Dr. He Yu, the president of MCC8 International, signed the Memorandum of Understanding (MOU) for a general contracting of Sunyani Water Supply System Expansion and Rehabilitation Project in Ghana with the Ministry of Water Resources, Works and Housing of the Republic of Ghana, represented by Kweku Botwe, the Managing Director of Ghana Water Company Limited. On August 2, 2011, the Government of the Republic of Ghana represented by Deputy Minister of Roads and Highway (MRH), Dr. Nii Oakley Quaye-Kumah, signed the Memorandum of Understanding for the Design and Construction of the Western Corridor Natural Resources Enclave Road Project with the MCC20-MCC8 Consortium.