China Eximbank provides $58.3 million preferential buyer’s credit for National Road No. 33 Reconstruction and Upgrading Project

Project narrative

On April 12, 2022, China Eximbank and the Government of Cambodia signed a $58,330,000 China Eximbank preferential buyer’s credit (PBC) agreement for the National Road No. 33 Reconstruction and Upgrading Project. The loan carries the following borrowing terms: a 2% interest rate, a 7-year grace period, and a 20-year maturity. The borrower is expected to use the proceeds of the loan to finance a commercial contract with China Road and Bridge Corporation (CRBC). During calendar years 2022 and 2023, China Eximbank disbursed $11,396,200 and $14,852,300, respectively, in support of the National Road No. 33 Reconstruction and Upgrading Project. As of early 2024, the lender planned to disburse $16,025,750 in 2024 and $16,025,750 in 2025. The purpose of the project is to expand and upgrade National Road No. 33 (NR33), a 52.57 km road that runs from the NR3 junction near Kampot market (148km+100) to the Cambodia-Vietnam border gate (Lok or Prek Chak). The project scope includes (1) widening the body of the road to 12 meters (AC rubber concrete floor, 7 cm thick from PK0+00 to PK 36+238 and AC rubber concrete floor, 5 cm thick from PK36+238 to PK51+860) according to Chinese standards (so-called ‘Chinese Standard II’), (2) building sewers in 18 places that measure 252 meters in length, (3) building drainage in 8 places, and (4) equipping the road with speed camera in 5 places. CRBC is the EPC contractor responsible for project implementation. Guangzhou Wanan Construction Supervision Co., Ltd. is responsible for project supervision. A groundbreaking ceremony took place on December 30, 2022. The project’s originally scheduled commencement and completion dates were May 1, 2022 and September 30, 2025, respectively.