Project ID: 33488

China Eximbank provides RMB 1.55 billion government concessional loan for Section 3 (Wetiya to Andarawewa) Extension of Southern Expressway Project (ESEP) (link to projects ID #38337, #53526, #53522 and #53529)

Commitment amount

$ 243379915.1

Constant 2017 USD

Summary

Funding agency [Type]

Export-Import Bank of China [State-owned Policy Bank]

Recipient

Sri Lanka

Sector

Transport and storage (Code: 210)

Flow type

Loan

Concessional

Yes

Category

Intent

Development (The next section lists the possible statuses.)

Commercial

Development

Representational

Mixed

Financial Flow Classification

ODA-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 year

2014

Implementation

2016

2016-01-25

Actual start

Completion

2020

2018-01-24

Planned

2020-02-23

Actual

Geography

Description

The purpose of the Extension of Southern Expressway Project (ESEP) was to enhance the efficiency of the transport system by linking the country's major economic centers with Colombo City and other parts of the country. It was also designed to facilitate the activities of the Hambantota International Development Hub Project. It involves a 96 km extension of the Southern Expressway from Matara to Hambantota, and it consists of 4 sections. ESEP Section 1 consists of the construction of a 30 km length road section from Matara to Beliatta. ESEP Section 2 consists of the construction of a 26 km length road section from Beliatta to Wetiya. The scope of this project includes the construction of 2 interchanges, 26 underpasses, 7 overpasses, 8 bridges, and 70 box culverts. ESEP Section 3 consists of the construction of a 15 km length road section from Wetiya to Andarawewa. The scope of this project includes the construction of 1 viaduct, 18 underpasses, 5 overpasses, 2 bridges, 45 box culverts, and 6 pipe culverts. This project also includes the construction of the Ranna-Wetiya Road (HR 21) and Sooriyawewa-Galwewa Junction-Embilipitiya Road (HR 06, HR 10). ESEP Section 4 consists of the construction of a 25 km length road section from Mattala to Hambantota via Andarawewa. The scope of this project includes the construction of 2 viaducts, 1 interchange, 6 bridges, 2 bridge underpasses, 2 overpasses, 10 culvert underpasses, 61 box culverts, and 1 aqueduct. China Eximbank financed each of these sections of ESEP with four different loans. On December 23, 2014, China Eximbank and the Government of Sri Lanka signed a $683.5 million preferential buyer’s credit (PBC) agreement [PBC No. (2014) 27 Total No. (321)] for Section 1 (Matara to Beliatta) of ESEP. This PBC carries an interest rate of 2%, a maturity of 20 years, a 5-year grace period, a 0.25% commitment fee, and a 0.25% management fee. On April 7, 2016, China Eximbank and the Government of Sri Lanka signed a $360.3 million preferential buyer’s credit (PBC) agreement [PBC No. (2015) 38 Total No. (381)] for Section 2 (Beliatta to Wetiya) of ESEP. This PBC carries an interest rate of 2%, a maturity of 20 years, and a 5-year grace period. On September 16, 2014, China Eximbank and the Government of Sri Lanka signed an RMB 1,555,990,000 government concessional loan (GCL) agreement [GCL No. (2014) 17 Total No. (520)] for Section 3 (Wetiya to Andarawewa) of ESEP. This GCL carries an interest rate of 2%, a maturity of 20 years, 5-year grace period, 0.25% commitment fee, and a 0.50% management fee. On September 16, 2014, China Eximbank and the Government of Sri Lanka signed an RMB 2,528,170,000 government concessional loan (GCL) agreement [GCL No. (2014) 18 Total No. (521)] for Section 4 (Mattala to Hambantota via Andarawewa) of ESEP. This GCL carries an interest rate of 2%, a maturity of 20 years, and a 5-year grace period. Project ID#38337 captures the PBC for Section 1. Project ID#53526 captures the PBC for Section 2. Project ID#33488 (this project) captures the GCL for Section 3. Project ID#53522 captures the GCL for Section 4. Section 1 was implemented by four Chinese firms — AVIC International Engineering Corporation (a subsidiary of Aviation Industry Corporation of China), China State Construction Engineering Corporation (CSCEC or 'China State Construction’), China Harbour Engineering Corporation (CHEC), and China Railway First Survey and Design Institute Group. It commenced on January 16, 2016 and it was completed on January 19, 2019. Section 2, which was implemented by China State Construction Engineering Corporation (CSCEC), commenced on October 28, 2016. Its target completion date was October 27, 2019, and as of December 31, 2018, it was 61.23% complete. It was completed on February 23, 2020.Section 3, which was implemented by China State Construction Engineering Corporation (CSCEC), commenced on January 25, 2016, and as of December 31, 2018, it was 88.77% complete. Its original target completion date was January 24, 2018, but this section is behind schedule due to soil issues and delay in possession of the site. It was completed on February 23, 2020.Section 4, which was implemented by China Harbour Engineering Company Ltd. (CHEC), commenced on January 19, 2016. Its target completion date is May 28, 2019, and as of December 31, 2018, it was 86.06% complete. Sections 1-4 were complete, and the Southern Expressway opened to traffic on February 23, 2020. The completion of the ESEP project has linked Hambantota Port and Mattala Rajapaksa Hambantota Airport. China Eximbank provided an additional loan to fund consultancy services related to the Southern Expressway (see Project ID #53529).

Additional details

China Eximbank provided an additional loan to fund consultancy services related to the Southern Expressway (see Project ID #53529).

Number of official sources

28

Number of unofficial sources

10

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Details

Cofinanced

No

Receiving agencies [Type]

Government of Sri Lanka [Government Agency]

Implementing agencies [Type]

China State Construction Engineering Corporation (CSCEC) [State-owned Company]; Government of Sri Lanka [Government Agency]

Loan type

Concessional

Maturity

20 years

Interest rate

2.0%

Grace period

5 years

Management fee

0.5

Commitment fee

0.25

Grant element

53.10116182%

Gurarantee provided

No

Insurance provided

No