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Overview

Chinese Government offers $302 million loan package for roads and irrigation projects (linked to Record ID#39178, #32155)

Commitments (Constant USD, 2023)$327,312,986
Commitment Year2012Country of ActivityCambodiaDirect Recipient Country of IncorporationCambodiaSectorOther MultisectorFlow TypeLoan

Status

Project lifecycle

Pipeline: Commitment

Pipeline: PledgePipeline: CommitmentImplementationCompletion

Timeline

Key dates

Commitment date
Feb 2, 2012
First repayment
Dec 30, 2018
Last repayment
Dec 27, 2031

Stakeholders

Organizations involved in projects and activities supported by financial and in-kind transfers from Chinese government and state-owned entities

Ultimate beneficial owners

At least 25% host country ownership

Funding agencies

State-owned Policy Banks

  • Export-Import Bank of China (China Eximbank)

Receiving agencies

Government Agencies

  • Government of Cambodia

Implementing agencies

State-owned companies

  • China Road & Bridge Corporation (CRBC)
  • Guangdong Foreign Construction Co., Ltd (GDFC)
  • Guangzhou Wanan Construction Supervision, Co. Ltd.

Loan desecription

Chinese Government offers $302 million loan package for roads and irrigation projects (linked to Record ID#39178, #32155)

Grace period7 yearsGrant element56.0077%Interest rate (t₀)2%Interest typeFixed Interest RateMaturity20 years

Narrative

Full Description

Project narrative

On February 2, 2012, Chinese Prime Minister Hun Sen signed an agreement under which China would provide US$302 million in concessional loans to Cambodia to build roads and irrigation systems. A week before, the Export-Import Bank of China promised to advance the US$302 million loan during a visit by its chairman Li Ruogu. Projects that are connected to this loan agreement include Vaico Irrigation Development Project - Phase I and Project of Extension National Road 76: Vaico Irrigation Development Project - Phase I: US$99,303,000 preferential buyer's credit loan. The Vaico Irrigation Development Project was said by Spokesman of Ministry of Water Resources and Meteorology Mr. Chan Yutha to be the biggest water resources irrigation project under the cooperation of Cambodia and China and it will be constructed by two phases. The total cost of the whole project is US$200 million, totally funded by concessional loans from China. When completed, more than 300,000 ha of farmland in Prey Veng, Svay Rieng and Kampong Cham provinces can be irrigated, in turn promoting local agriculture and contributing to poverty reduction. The project was commenced on March 1, 2013, and is expected to complete by February 2, 2017. The contractor is Guangdong Foreign Construction Co., Ltd. and the Consultant is Guangzhou Wanan Construction Supervision Co., Ltd. (see linked Record ID#39178 for more details). Project of Extension National Road 76: US$89,273,400 preferential buyer's credit loan. The 171.78 km road will be from Sen Monorom - Koh Nhek (Mondulkiri) to Lukphat - Ta Ang (Ratanakiri). Works for the project began on 31 January 2012 and is expected to complete by 2 February 2017. The contractor for the project is China Road and Bridge Corporation and the Consultant is Guangzhou Wanan Construction Supervision Co., Ltd. While CDC reports the loan amount of US$89,273,400, MPWT reports the amount of US$91,680,000 (see linked Record ID#32155 for more details)