Chinese Government provides interest-free loan for purchase of two MA60 aircraft

On February 18, 2012, the Chinese Ambassador to Cambodia Pan Guangxue and Cambodia’s Deputy Prime Minister and Minister of Finance and Economics Ji Chun signed the exchange of notes regarding the purchase of two Xian MA60 Aircraft. According to the agreement, the Cambodian Government would use an interest-free loan from the Chinese Government for the purchase of two Xian Modern Ark 60 (MA60) short-distance turboprop passenger planes from the Chinese state-owned company, Xi'an Aircraft Industrial Corporation (XAC). This is the first time that Xian MA60 aircraft have been exported to Cambodia. The first airplane was handed over by XAC to the Royal Airforce of Cambodia on June 13, 2012, where at the Peace Palace, the Certificate of Delivery and Receipt of 2 units of MA 60 aircraft was signed by Lt. Gen. Chau Phirun, Director General of the General Department of Materials and Techniques of Cambodian Ministry of National Defense and H.E. Chen Jian, Vice Minister of Commerce of China. The second airplane was handed over on July 27, 2012. It is reported that the second MA60 aircraft will be used as a special plane for the Prime Minister of the Kingdom of Cambodia. The planes were eventually given to Cambodia's Bayon Airlines for commercial operation.

Additional details

1. The Chinese project title is 新舟60飞机. 2. Around the time that the loan was contracted, the cost of a single MA60 was approximately $11 million. Therefore, in the absence of the actual face value of the loan, AidData imputes a face value of $22 million. 3. Since the borrowing terms of the interest-free loan are unavailable, AidData has set maturity to 20 years by default and the grace period to 10 years by default, per China's Foreign Assistance White Paper (http://www.cidca.gov.cn/2018-08/06/c_129925064_3.htm) which states that the maturity of interest-free loans is 20 years, with a drawdown period of 5 years, grace period of 5 years, and repayment over 10 years. AidData treats the drawdown period as providing 5 years of additional grace.

Number of official sources

4

Number of total sources

13