Narrative
Full Description
Project narrative
On December 12, 2019, Myanmar Conch (Mandalay) Cement Co., Ltd. [缅甸海螺（曼德勒）水泥有限公司] — special purpose vehicle and a joint venture of Anhui Conch Cement Co., Ltd. [55% equity stake] and MYINT Investment Group Co., Ltd. [45% equity stake] — and the Anhui Branch of the Export-Import Bank of China (China Eximbank) signed an RMB 1.1 billion loan agreement for the Alpha Cement Factory Construction Project. The loan carried a maturity of 10 years, but its grace period and interest rate are unknown. Both owners of Myanmar Conch (Mandalay) Cement provided guarantees for the full face value of the loan. The purpose of the project was to construct a 5,000 tons-per-day (t/d) cement plant about 10 miles north of Mandalay, near the village of Aungthapye [Aung Thabyay] in Madaya Township. Construction began in December 2017. The Alpha cement plant was put into production on March 29, 2020, and its first delivery of cement took place on June 17, 2020. However, the project encountered local opposition from local farmers and residents over environmental and health concerns related to the coal-fired cement plant. Then, in July 2024, rebels from the People’s Defense Forces took control of the cement plant.
Staff comments
1. The borrowing terms of the loan, beyond a 10-year maturity, remain unknown.