Chinese Government provides loan for Kyaukse Cement Factory Construction Project

On June 2, 2000, China National Construction & Agricultural Machinery Import & Export Corporation (CAMC) signed a $16.5 million commercial contract for the Kyaukse Cement Factory Construction Project. The commercial contract was financed with a loan from an unknown Chinese state-owned lender. The borrowing institution and the borrowing terms of the loan are unknown. However, it is known that the Government of Myanmar's Ministry of Finance issued a sovereign guarantee in support of the loan. It is also known that the borrower purchased credit insurance from Sinosure. The purpose of the project was to build a cement factory with a 500-ton capacity in Kyaukse, the hometown of Myanmar's then-head of state. China National Construction & Agricultural Machinery Import & Export Corporation (CAMC) was the EPC contractor responsible for project implementation. Construction began on January 28, 2001 and ended on July 21, 2002. Then, on October 29, 2002, initial cement production began. On January 9, 2003, all testing was finished. A project completion ceremony was held on January 27, 2003.

Additional details

1. The Chinese project title is 郊塞水泥. 2. The borrower was mostly likely a state-owned enterprise (SOE) in Myanmar. This issue warrants further investigation. 3. For the time being, AidData assumes that 85% of the cost of the commercial contract ($14.025 million) was financed with a buyer's credit loan. This issue warrants further investigation.

Number of official sources

3

Number of total sources

5