China Eximbank provides $49.9 million preferential buyer's credit loan for Phase 1 of Kanghot Irrigation Development Project (Linked to Record ID#35591)

Project narrative

On October 23, 2009, China Eximbank and the Government of Cambodia signed a $49,911,971 Preferential Buyer's Credit (PBC) loan agreement for Phase 1 of the Kanghot Irrigation Development Project. The borrowing terms of the loan were as follows: 20-year maturity, 7-year grace period, and 2% interest rate. The proceeds from the PBC were used to partially finance an EPC contract with Guangdong Foreign Construction Company (GDFC). The Cambodian government also contributed $13 million to the project. The purpose of the project was to construct an irrigation system in the Kanghot (or Kang-hot or Konghot) area within Battambang Province. It involved the construction of a river barrage and water diversion dam, water irrigation and drainage channels, and channel auxiliary buildings. Upon completion, it was expected that the project would make approximately 34.3 thousand hectares of farmland available in the Banan and Sangke districts. GDFC was the EPC contractor responsible for implementation. The project commenced on November 26, 2010 and ended on June 4, 2013. China Eximbank also provided a Government Concessional Loan (GCL) for Phase 2 of the Kanghot Irrigation Development Project (captured in linked Record ID#35591).