Chinese Government provides RMB 72 million grant for Y-12E Aircraft Procurement Project (Linked to Record ID#73577 and ID #71404)

Project narrative

In 2008, China Eximbank issued a government concessional loan (GCL) worth RMB 72 million ($11 million) to the Government of Seychelles for the Y-12E Aircraft Procurement Project. The proceeds of this loan were to be used by the borrower to purchase two Y-12E aircraft from China National Aero-Technology Import and Export Corporation (CATIC). To become familiar with the Y-12E, a group of Seychellois engineers and pilots were also scheduled to participate in a 45-day training course in Harbin, where the aircraft are produced. These aircraft are configured for passenger and cargo transport, as well as emergency rescue, aerial photography, insecticide spreading and maritime surveillance. However, according to the Ministry of Finance and Trade of Seychelles, no disbursements were ever made through the GCL. Then, on March 24, 2011 the Office of the President of the Republic of Seychelles announced that the Chinese Government had donated two Y-12E aircraft. The aircrafts, along with spares and other equipment, were officially handed over to Seychelles on June 2011. At the June 17, 2011 project handover ceremony, Seychelles’ Foreign Affairs Minister Jean-Paul Adam announced that “We had first opened discussions on the provision of aircrafts from China in 2006 on the basis of a concessional loan. However, as Seychelles has been hit subsequently by the financial crisis and the increased pressures of piracy on the economy, the Government of China recognized how critical such capability is for our development at this time and turned the proposed loan into a grant. … This generous gesture will always be remembered and appreciated. I would like to convey once again our immense gratitude to the people and Government of China for this critical support at this time.” One of the Y-12E aircraft was earmarked for use surveillance activities better protect the country’s exclusive economic zone (EEZ) from foreign threats, including piracy, illegal fishing activities, and drug smuggling. The other aircraft was earmarked for improving communications and access between Mahé Island and the outer Islands.