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Overview

China Eximbank provides RMB 260.5 million government concessional loan for Supply of 15 Diesel Multiple Units (DMUs) Project

Commitments (Constant USD, 2023)$56,912,057
Commitment Year•2007Country of Activity•Sri LankaDirect Recipient Country of Incorporation•Sri LankaSector•Transport And StorageFlow Type•Loan

Status

Project lifecycle

Completion

Pipeline: PledgePipeline: CommitmentImplementationCompletion

Timeline

Key dates

Commitment date
May 15, 2007
Last repayment
May 12, 2019

Geospatial footprint

Map overview

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This project facilitated the acquisition of Diesel Multiple Units for use on the Kelani Valley Line. The Kelani Valley line runs southeast from Colombo Maradana Station, through much of the city of Colombo. It runs through major business centres, like Nugegoda and Maharagama, before turning eastwards. It crosses the Southern Expressway near Homagama and continues east towards Avissawella, the current terminus of the line. Major railway stations on the line are Colombo Fort, Maradana, Narahenpita, Nugegoda, Maharagama, Pannipitiya, Kottawa, Homagama, Meegoda, Padukka, Waga, Kosgama, and Avissawella. More detailed locational information can be found at https://www.openstreetmap.org/relation/2191365#map=12/6.8958/80.0288

Stakeholders

Organizations involved in projects and activities supported by financial and in-kind transfers from Chinese government and state-owned entities

Ultimate beneficial owners

At least 25% host country ownership

Funding agencies

State-owned Policy Banks

  • Export-Import Bank of China (China Eximbank)

Receiving agencies

Government Agencies

  • Government of Sri Lanka

Implementing agencies

State-owned companies

  • China National Machinery Import & Export Corporation (CMC)
  • Hubei Machinery and Equipment Import-Export Company

Loan desecription

China Eximbank provides RMB 260.5 million government concessional loan for Supply of 15 Diesel Multiple Units (DMUs) Project

Grant element•31.9321%Interest rate (t₀)•2%Interest type•Fixed Interest RateMaturity•12 years

Narrative

Full Description

Project narrative

On May 15, 2007, China Eximbank and the Government of Sri Lanka signed an RMB 260,528,797 ($38,683,633) government concessional loan (GCL) agreement for the Supply of 15 Diesel Multiple Units (DMUs) Project. The GCL carried the following borrowing terms: a 2% interest rate and a 12-year repayment period. As of 2008, it had disbursed approximately RMB 152,988,788.83 (Rs. 2,385,340,000). The borrower made repayments worth RMB 20,842,304 in 2018, RMB 20,842,304 in 2019, RMB 20,842,304 in 2020 and RMB 20,842,304 in 2021. The loan's amount outstanding was RMB 104,211,519 as of December 31, 2017, RMB 83,369,215 as of December 31, 2018, RMB 62,526,911 as of December 31, 2019, RMB 41,684,607 as of December 31, 2020, and RMB 20,842,303 as of December 31, 2021, and RMB 10,421,152 as of June 30, 2022. The purpose of the project was to facilitate the acquisition of 15 diesel multiple units (power train sets) to Sri Lanka Railways. China National Machinery Import and Export Corporation (CMC) was responsible for supplying the power train sets to Sri Lanka Railways. The supplier of the power train sets was Hubei Machinery and Equipment Import-Export Company. This project was part of a broader effort to modernize the Sri Lankan Railway system and reduce inconvenience caused to commuters traveling from Colombo to the suburban areas and on the Kelani Valley route. The first 3 power train sets were scheduled to reach Colombo by August 2008, and the other twelve power train sets were to be delivered in two batches of six in September 2008 and December 2008. This project was successfully completed in 2009. However, this project has encountered debt repayment problems. On April 12, 2022, the Government of Sri Lanka announced a ‘pre-emptive’ sovereign debt default, noting that it would suspend debt repayments to all external creditors other than multilateral institutions. Its decision to suspend external debt service reportedly affected all China Eximbank loans with amounts outstanding at the time of the announcement.

Staff comments

1. In 2007, the Chinese Government also issued a loan for the provision of 100 carriages to the Government of Sri Lanka (see Record ID#33275), and it committed another loan in 2010 for the provision of an additional 13 diesel multiple units (see Record ID#49343). 2. The Government of Sri Lanka loan key number is 2007015.