Overview

China Eximbank provides seller's credit to CRMASC for procurement of 52,000 metric tons of railway material by Pakistan Railways

Commitments (Constant USD, 2023)$43,468,814

Commitment Year•2002Country of Activity•PakistanDirect Recipient Country of Incorporation•China (People's Republic of)Sector•Transport And StorageFlow Type•Loan

Status

Project lifecycle

Completion

Pipeline: PledgePipeline: CommitmentImplementationCompletion

Timeline

Key dates

Commitment date: Apr 23, 2002

Start (actual): Apr 24, 2002

Last repayment (originally scheduled): Apr 21, 2010

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% Chinese ownership

Funding agencies

State-owned Policy Banks

Export-Import Bank of China (China Eximbank)

Receiving agencies

State-owned companies

China Railways Materials and Supplies Corporation
Pakistan Railways

Implementing agencies

State-owned companies

China Railways Materials and Supplies Corporation
Pakistan Railways

Loan description

CRMASC provides $18.8 million supplier’s credit to Pakistan Railways for procurement of 52,000 metric tons of railway material

Grant element•13.6307%Interest rate (t₀)•5.3%Interest type•Fixed Interest RateMaturity•8 years

Narrative

Full Description

Project narrative

On April 23, 2002, a $22.152 million commercial contract for the procurement of 52,000 metric tons of railway material was signed by Pakistan Railways (PR) and China Railways Materials and Supplies Corporation (CRMASC). The contract was signed by Saeeduz Zafar, Chairman of the PR Board, and Liu Guoping, Vice President of the CRMASC. PR was to finance 15% of the contract amount while the remaining $18.8292 million would be financed through a supplier's credit (loan) from CRMASC. The CRMASC supplier's credit carried an 8-year maturity and a 5.3% interest rate. China Eximbank provided an export seller’s credit to CRMASC to provide it with the funding necessary to offer a supplier’s credit to PR. The rails that were procured were heavier than PR's existing rails. The usage of these new rails would allow trains to operate at a higher speed and enhance load capacity.

Staff comments

1. According to a 2010 media report, CRMASC successfully exported the railway material to PR, so AidData have status-coded the project as complete for the time being. 2. CRMASC is now known as China Railway Materials Group Corporation. 3. The borrowing terms of the loan are drawn from the following official source: https://www.finance.gov.pk/survey/chapters/09-debt.pdf