China Eximbank provides $27.45 million preferential buyer’s credit for Phnom Penh Port New Container Terminal Construction Project

Project narrative

On November 4, 2010, China Eximbank and the Government of Cambodia signed a $27,452,416 preferential buyer’s credit (PBC) agreement for the Phnom Penh Port New Container Terminal Construction Project. The borrowing terms of the PBC were as follows: a 20-year maturity, a 7-year grace period, and a 2% interest rate. The proceeds of the PBC were used to partially finance an EPC contract with Shanghai Construction Group. The purpose of the project was to construct a new container terminal on the Mekong River in Kien Svay district (Khmer: ស្រុកកៀនស្វាយ) within Kandal province, about 21 kilometers south of the city of Phnom Penh. The terminal, which is connected to National Highway No. 1 (NR1), is 300 meters long and 22 meters wide. It has two berths for 5000-ton freighters. It was designed to deal with the surge of cargo received by the country’s main port in Phnom Penh, and handle 150,000 TEUs per year in the first stage of development . Construction was expected to start on June 20, 2011, and end on January 22, 2013. However, construction actually began on March 9, 2011. The terminal began operations on January 1, 2013, and an official inauguration ceremony for the new terminal was held on January 22, 2013.