China Eximbank provides $71.5 million preferential buyer’s credit for National Road No. 8 (NR 8) Rehabilitation Project (Ksach Kandal to Vietnam Border Section) (Linked to Record ID#32113, #32195)

Project narrative

On February 22, 2007, China Eximbank and the Government of Cambodia signed a $71,512,717 preferential buyer’s credit (PBC) agreement for the National Road No. 8 (NR 8) Rehabilitation Project (Ksach Kandal to Vietnam Border Section). The borrowing terms of the loan were as follows: a 20-year maturity, a 7-year grace period, and a 2% interest rate. The proceeds of the PBC were to be used by the borrower to partially finance an EPC contract with Shanghai Construction Group (SCG). The purpose of the project was to rehabilitate a 109 km segment of National Road No. 8 (NR 8) between Ksach Kandal and the country’s eastern border with the Vietnam Border. The starting point of this road is the Mekong River Bridge in Gala Province and the ending point is the eastern Cambodia-Vietnam border. The geographical distribution of National Road No. 8 is as follows: 45% in Kandal Province, 10% in Kampong Cham Province, and 45% in Prey Veng Province. The ultimate purpose of the project was to increase the well-being of the residents of Ksach Kandal, Kom Jai Mear, and Svay Ontour districts. They previously had to rely on the ferry or boats from Prek Tamak's port to travel to Phnom Penh and other places in the central and eastern parts of the country. SCG was the EPC contractor responsible for implementation. The project was supervised by Guangzhou Wanan Construction Supervision Company. A groundbreaking ceremony was held on March 15, 2007 and the originally anticipated duration of the construction period was 40 months. On November 22, 2012, a road opening ceremony was held for NR 8, Road No. 8-1, and No. 8-2.