Nigeria+Infrastructure+Projects

=Chinese Export Import (EXIM) Bank and China Civil Engineering Construction Company (CCECC) Highly Likely to Increase and Continue to be Nigeria's Main Aid to Infrastructure Projects Corresponding to PNGSM Investments=

Executive Summary:
China likely to invest in infrastructure projects in Nigeria that correspond to their PNGSM investments, and invest in other infrastructure projects to further pursue these investments. Chinese Export Import (EXIM) Bank will highly likely be the main aid Nigeria receives, through loans. Likewise, the China Civil Engineering Construction Company (CCECC) will likely increase its presence in Nigeria. China has attributed the most valuable projects to Nigeria, and the relations between these two countries have only increased through the past five years. Both the Chinese EXIM Bank and CCECC have had major deals with Nigeria in the past and most recently have had increases. In 2010, China committed USD 22 billion to construct oil refineries and a petrochemical plant. After Nigerian President Goodluck Jonathan visited China in July 2013, approximately eight memorandums of understandings and loan agreements were signed to fund infrastructure in Nigeria. Including a USD 1.1 billion loan to boost infrastructure. The main key players in the memorandums were Chinese EXIM Bank, CCECC, China Geo-science Corporation (CGC), and Huaweu and ZTE Corporation. China's most expensive projects to Nigeria have all dealt with helping Nigeria's oil industry with the construction and exploitation of refineries and transportation of the oil. The infrastructures have customarily been located around the main cities of Abuja and Lagos.

Discussion:
Nigeria desires to attract foreign investment but is hindered in this mission by shaky infrastructure troubled by power cuts. On 26 April 2006, China and Nigeria signed an agreement for a USD 6 million grant for infrastructure projects, which this grant was decided upon to reciprocate Nigeria and China's formalization of four oil block contracts, which include setting up a power generation station. Also, under the agreement Nigeria granted China the first right of refusal to CNPC on the auction of a share in the Kaduna refinery. However, in 2007 China failed to win the auction for Kaduna's stakes.

In 2010, CSCEC announced that it had signed a memorandum of understanding with Nigeria National Petroleum Corporation (NNPC) to finance and construct three refinery plants and a petrochemical complex. Each refinery plant is planned to have a capacity of about 250,000 barrels per day. As the engineering, procurement, and construction head contractor, CSCEC plans to spend an estimated USD 22 billion on the project.The refineries are going to be located in Nigerian states of Lagos, Bayelsa and Kogi..

Between 10-12 July 2013, Nigerian President Goodluck Jonathan visited China and the two countries signed eight memorandums of understanding and USD 1.1 billion loan to boost infrastructure. These loans are to help fund critical infrastructure in Nigeria and improve and strengthen ties between the countries. The projects include a Chinese EXIM Bank loan deal with the Nigerian Federal Government to fund the construction of Zungeru Power Plant and four ultra-modern international airport terminals by the Ministry of Aviation in Abuja, Lagos, Port Harcourt and Kano. Other loan agreements signed are for the funding of power projects, particularly the transmission projects and the Lagos-Ibadan Standard Gauge Rail project. China is to build a Cultural Center in Abuja, the Federal Capital Territory (FCT) to facilitate cultural integration between the two nationalities. These agreements are all in order to strengthen the ties between China and Nigeria to better trade relations.

In 2007, Nigeria and China committed to a Nigeria has great potential for solid minerals. In Jan. 2013, China and Nigeria signed a memorandum of understanding for the establishment of the first solid minerals laboratory in Nigeria, no more details have been released.

Port Harcourt, and Enugu || China EXIM Bank, China Civil Engineering and Construction Comp. (CCECC) || Construction of four new airport terminals || Misc. || Sanga, and Lere || Misc. || of China (ICBC) || Construction of Nigeria's housing sector || Misc. ||
 * **Date:** || **Price (USD):** || **Location:** || K**ey Chinese Companies Involved:** || **Description:** || **Corresponds To:** ||
 * 2008 || 5 million ||  || Zhongxing Technologies (ZTE) || Installation and commissioning of Global Open Trunking Architecture (GOTA) security communications || Misc. ||
 * 2009 || 1 billion || Abuja || China EXIM Bank, CGC Overseas Construction Co., Ltd. (CGCOC) || Construction of houses and the distribution of water || Misc. ||
 * 2009 || 12 million || Abuja ||  || Upgrade of 150 bed facility to Federal Staff Hospital || Misc . ||
 * 2009 || 18 million ||  || Sinopec || Constructing two asphalt mines || Minerals. ||
 * 2012 || 100 million ||  || China EXIM Bank || Develop a galaxy backbone ICT network to improve communications || Misc. ||
 * 2012 || 500 million || Abuja, Kano,
 * 2012 ||  ||   || China EXIM Bank || Construction of light rail systems throughout the country || Misc. ||
 * 2012 || 200 million ||  || China EXIM Bank || Installation of 18 large scale industrial cassava flour processing plants || Misc. ||
 * 2012 || 30 million || Kaduna State || China EXIM Bank || Digitization of the State Media Corporation with two substations in Kafanchan and Zaria and three booster stations in Birnin-Gwari,
 * 2012 || 900 million || Zungeru River. || China EXIM Bank, Sinohydro Corp.,China National Electrical Equipment Corp || Build a 700 megawatt hydropower station || Misc. ||
 * 2013 ||  ||   || Unicontinental International Engineering Company Ltd || Joint venture with Nigerian Multiverse Plc for new mining projects || Minerals. ||
 * 2013 || 6 billion ||  || China Export and Credit Insurance Corporation (SINOSURE),International Commercial Bank



** Analytic Confidence: **
Analytic confidence is medium. Source reliability ranges from medium to high. There is no conflict between sources. The analyst had low expertise on the subject, worked alone while also collaborating with a group, and did not use a structured analytic method. The subject is moderately complex and the deadline was moderately easy to meet.
 * Analyst:** RoseAnna Wright