China Eximbank provides EUR 9.53 million preferential buyer's credit for MATGENIE Company Rehabilitation Project

On March 24, 2010, China Eximbank and the Ministry of Economy, Planning and Regional Development of the Republic of Cameroon signed a preferential buyer credit (PBC) loan agreement [CHINA EXIMBANK PBC NO. (2010) 6 TOTAL NO. (113) LOAN SERIAL NO.1290003992010210055] worth EUR 9,533,609 for the Cameroon Matgenie Company Rehabilitation Project. The PBC carried the following borrowing terms: an interest rate of 2%, a maturity of 20 years, and a 3 year grace period.The purpose of the project was to facilitate the acquisition of 60 graders, 20 roller compactors, 10 loaders, 10 backhoe loaders and 20 bulldozers from China's Dingsheng Tiangong Construction Machinery Co., Ltd. The equipment was to be used for the construction of larger infrastructure projects including over 50,000 km of roads and harbors. The proceeds of the loan were to be used by the borrower to finance 75.65% of the total cost (EUR 12,602,568) of a commercial contract [#AFO9O7OUG] between Dingsheng Tiangong Construction Machinery Co., Ltd. and the Ministry of Economy, Planning and Regional Development of Cameroon, which was signed on March 13, 2009. On March 29, 2011, a delivery ceremony was organized to officially hand over these 120 pieces of equipment.

Additional details

1. This project is also known as the Rehabilitation of the National Civil Engineering Equipment Depot (MATGENIE). The French project title is Réhabilitation du Parc National de Génie Civil or Projet de réhabilitation du parc national de matériels de génie civil. The Chinese project title is 喀麦隆120台工程机械采购项目.2. Dingsheng Tiangong Construction Machinery Co., Ltd. is a subsidiary of China SINOMACH Heavy Industry Corporation (SINOMACH-HI), which is a Chinese state-owned enterprise.3. A supplemental agreement was signed on December 23, 2010, which reduced the face value of the loan from EUR 12,602,568 to EUR 9,533,609.4. In the database of Chinese loan commitments that SAIS-CARI released in July 2020, it records the face value of the loan as $14 million and does not record the terms of loan. AidData records the face value (EUR 9,533,609) and the terms (2% interest rate, 20 year maturity, 3 year grace period) that are contained in the loan agreement itself [CHINA EXIMBANK PBC NO. (2010) 6 TOTAL NO. (113) LOAN SERIAL NO.1290003992010210055] supporting the project.5. SAIS-CARI records the commitment year as 2009. AidData records the commitment year as 2010 because the loan agreement was finalized on March 24, 2010.6. SAIS-CARI records a second and separate $15 million preferential buyer's credit in 2014 from China Eximbank for 'MATGENIE 120 Machines and Heavy Equipment for Road Work'. However, this appears to be an error/duplicate because it was the 2010 China Eximbank loan that facilitated the acquisition of 120 machines and heavy equipment (specifically, 60 graders, 20 roller compactors, 10 loaders, 10 backhoe loaders and 20 bulldozers). The Government of Cameroon's Development Assistance Database (DAD) does not record a separate $15 million preferential buyer's credit in 2014 from China Eximbank for a 'MATGENIE 120 Machines and Heavy Equipment for Road Work' Project.7. The project ID number for this transaction in Cameroon's Development Assistance Database (DAD) is CAM/000707.8. The March 24, 2010 PBC agreement can be accessed in its entirety via SourceID#67116 or https://www.documentcloud.org/documents/20485530-cmr_2010_167.

Number of official sources

11

Number of unofficial sources

9