Chinese Government provides RMB 144.88 million interest-free loan for Kyaukse Agricultural Machinery Factory Construction Project

In May 2000, China’s Minister for Foreign Trade and Economic Cooperation Shi Guangsheng and Myanmar's Minister at the Office of the Chairman of the State Peace and Development Council Brigadier-General Abel signed an agreement in which the Chinese Government agreed to finance the Kyaukse Agricultural Machinery Factory Construction Project. The Chinese Government issued an RMB 144.88 million interest-free loan in support of the project, which involved the construction of a factory — with the the capacity to manufacture 10,000 16-horse-power power-tillers and 5,000 3.5-horse-power harvesters a year — in the village of Inngone (အင်းကုန်း or Inngon) within Kyaukse Township and Mandalay Division (exact locational coordinates: 21.540206080185467, 96.16818475201536). The project is located at the place between mile post No. 396 and No. 397 on Yangon-Mandalay Highway, in the south of Kyaukse. The ultimate aim of the project was to boost paddy yield, and facilitate the transition from single cropping into double or triple cropping. It occupies an area of 30.69 acres and it encompasses six buildings. The Irrigation Department of the Union of Myanmar, the Institute of Project Planning & Research (IPPR) of the Ministry of Machinery Industry of the People's Republic of China, and Zhejiang Sifang Group Corporation were jointly responsible for implementation of the project. The project commenced in June 2001. The construction of the factory was completed in December 2003 and it was formally handed over to the local authorities on December 20, 2003.

Additional details

1. This project is also known as the Myanmar Farm Machinery Factory Construction Project. 2. Since the borrowing terms of the interest-free loan are unavailable, AidData has set the maturity to 20 years by default and grace period to 10 years by default. per China's Foreign Assistance White Paper (http://www.cidca.gov.cn/2018-08/06/c_129925064_3.htm) which states that the period of interest-free loans is 20 years, with a drawdown period of 5 years, grace period of 5 years, and repayment over 10 years. AidData treats the drawdown period as providing 5 years of additional grace.

Number of official sources

1

Number of total sources

9