Project ID: 32239

China Eximbank provides $71.5 million preferential buyer’s credit for National Road No. 8 (NR 8) Rehabilitation Project (Ksach Kandal to Vietnam Border Section) (linked to #32113, #32195)

Commitment amount

$ 128670284.62137029

Adjusted commitment amount

$ 128670284.62

Constant 2021 USD

Summary

Funding agency [Type]

Export-Import Bank of China (China Eximbank) [State-owned Policy Bank]

Recipient

Cambodia

Sector

Transport and storage (Code: 210)

Flow type

Loan

Level of public liability

Central government debt

Infrastructure

Yes

Category

Intent

Mixed (The next section lists the possible statuses.)

Commercial

Development

Representational

Mixed

Financial Flow Classification

OOF-like (The next section lists the possible statuses.)

Official Development Assistance

Other Official Flows

Vague (Official Finance)

Flows categorized based on OECD-DAC guidelines

Project lifecycle

Status

Completion (The next section lists the possible statuses.)

Pledge

Commitment

Implementation

Completion

Suspended

Cancelled

Milestones

Commitment

2007-02-22

Actual start

2007-03-15

Actual complete

2012-11-22

Description

On February 22, 2007, China Eximbank and the Government of Cambodia signed a $71,512,717 preferential buyer’s credit (PBC) agreement for the National Road No. 8 (NR 8) Rehabilitation Project (Ksach Kandal to Vietnam Border Section). The borrowing terms of the loan were as follows: a 20-year maturity, a 7-year grace period, and a 2% interest rate. The proceeds of the PBC were to be used by the borrower to partially finance an EPC contract with Shanghai Construction Group (SCG). The purpose of the project was to rehabilitate a 109 km segment of National Road No. 8 (NR 8) between Ksach Kandal and the country’s eastern border with the Vietnam Border. The starting point of this road is the Mekong River Bridge in Gala Province and the ending point is the eastern Cambodia-Vietnam border. The geographical distribution of National Road No. 8 is as follows: 45% in Kandal Province, 10% in Kampong Cham Province, and 45% in Prey Veng Province. The ultimate purpose of the project was to increase the well-being of the residents of Ksach Kandal, Kom Jai Mear, and Svay Ontour districts. They previously had to rely on the ferry or boats from Prek Tamak's port to travel to Phnom Penh and other places in the central and eastern parts of the country. SCG was the EPC contractor responsible for implementation. The project was supervised by Guangzhou Wanan Construction Supervision Company. A groundbreaking ceremony was held on March 15, 2007 and the originally anticipated duration of the construction period was 40 months. On November 22, 2012, a road opening ceremony was held for NR 8, Road No. 8-1, and No. 8-2.

Additional details

1. The Chinese project title is 柬埔寨8号公路及其支线. 2. The China Eximbank loan that supported this project is not included in the Overseas Development Finance Dataset that Boston University’s Global Development Policy Center published in December 2020. 3. Road No. 8-1 and No. 8-2 were supported by a separate China Eximbank preferential buyer's credit (capture via Project ID#32195). 4. On January 22, 2007, China Eximbank committed to providing a $207 million loan package for the “two bridges and two roads” project (involving Prek Tamaek Bridge, Prek Kdam Bridge, National Road No. 6, and National Road No. 8 (captured via Umbrella Project ID#32113). This project is a partial fulfillment of that commitment.

Number of official sources

15

Number of total sources

20

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Details

Cofinanced

No

Direct receiving agencies [Type]

Government of Cambodia [Government Agency]

Implementing agencies [Type]

Shanghai Construction Group General Co. [State-owned Company]

Guangzhou Wanan Construction Supervision, Co. Ltd. [State-owned Company]

Government of Cambodia [Government Agency]

Loan Details

Maturity

20 years

Interest rate

2.0%

Grace period

7 years

Grant element (OECD Grant-Equiv)

51.7588%

Bilateral loan

Export buyer's credit

Investment project loan