China Eximbank provides $50,883,600 preferential buyer's credit for Phase 1 of Rural Grid Extension Project (Linked to Record ID#62326, #62331, #62333)

Project narrative

On February 21, 2011, China Eximbank and the Government of Cambodia's Ministry of Finance signed a $50,883,600 preferential buyer's credit (PBC) agreement for Phase 1 of the Rural Grid Extension Project. The PBC carried the following terms: 20-year maturity, 7-year grace period, and 2% interest rate . The proceeds of PBC were used to partially finance an EPC (commercial) contract between Electricite du Cambodge (EDC) — the country’s state-owned electricity utility — and China National Heavy Machinery Corporation (CHMC), which was signed on December 13, 2010. The purpose of the first phase of the project was to construct rural grid medium voltage (22 kV) transmission lines and expand two 115 kV substations in Kampong Cham, Prey Veng, Kampong Speu and Preah Sihanouk Provinces. CHMC was the EPC contractor responsible for implementation. By September 15, 2011, it had received advance payments from the project owner (EDC) and China Eximbank. then, on April 5, 2012, a formal groundbreaking ceremony was held. It was attended by the Minister of Industry, Mines and Energy of Cambodia (MIME), the Governor of Kampong Cham province, and the Chinese Ambassador to Cambodia Pan Guangxue. The project was ultimately completed on July 21, 2015. China Eximbank conducted a post-loan, on-site inspection on April 26, 2016.