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Overview

China Eximbank provides RMB 500 million government concessional loan for Simon Bolivar Highway Extension Project

Commitments (Constant USD, 2023)$84,080,662
Commitment Year•2013Country of Activity•EcuadorDirect Recipient Country of Incorporation•EcuadorSector•Transport And StorageFlow Type•Loan

Status

Project lifecycle

Completion

Pipeline: PledgePipeline: CommitmentImplementationCompletion

Timeline

Key dates

Commitment date
Feb 2, 2013
Start (planned)
Dec 24, 2013
Start (actual)
May 6, 2013
End (planned)
Apr 24, 2016
End (actual)
Jun 15, 2018
First repayment (originally scheduled)
Feb 1, 2018
Last repayment (originally scheduled)
Jan 28, 2033

Geospatial footprint

Map overview

Visualizes the AidData-provided feature geometry for this project.

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The purpose of this 12 km Simon Bolivar Highway Project was to connect the capital city of Quito with the newly-opened Mariscal Sucre International Airport. More detailed locational information can be found at https://www.openstreetmap.org/directions?engine=fossgis_osrm_car&route=-0.1633%2C-78.4628%3B-0.1601%2C-78.4465#map=16/-0.1643/-78.4597 and https://www.openstreetmap.org/directions?engine=fossgis_osrm_car&route=-0.1604%2C-78.4468%3B-0.0244%2C-78.4379#map=12/-0.1626/-78.4528

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 Ecuador

Implementing agencies

Government Agencies

  • Government of Ecuador

State-owned companies

  • Empresa Pública Metropolitana de Movilidad y Obras Públicas (EPMMOP)
  • Sinohydro Corporation Limited

Loan description

China Eximbank provides RMB 500 million government concessional loan for Simon Bolivar Highway Extension Project

Grace period•5 yearsGrant element•53.1012%Interest rate (t₀)•2%Interest type•Fixed Interest RateMaturity•20 years

Narrative

Full Description

Project narrative

On February 2, 2013, China Eximbank and the Government of Ecuador signed a RMB 500 million ($77,380,000) government concessional loan (GCL) agreement [CHINA EXIMBANK GCL NO. (2013) 13 TOTAL NO. (458) No. 1420203052013110101] for the Simon Bolivar Highway Project. The GCL carried the following borrowing terms: a 2% interest rate, a 0% default (penalty) interest rate, a 5 year grace period, a maturity of 20 years, a 0.75% commitment fee, and a 1% management fee. The borrower was expected to used the proceeds of the loan to finance a $78,998,000 commercial contract [REI-EPMMOP-PSB-001-2012] between Empresa Pública Metropolitana de Movilidad y Obras Públicas (EPMMOP) — a state-owned mobility and public works company in Ecuador — and Sinohydro Corporation Limited, which was signed on November 9, 2012. The loan’s (principal) outstanding amount was $56,633,099.07 as of December 31, 2021 and $46,341,422.03 as of November 30, 2022. The purpose of this 12 km Simon Bolivar Highway Project was to connect the capital city of Quito with the newly-opened Mariscal Sucre International Airport. Sinohydro Corporation Limited was the contractor responsible for project implementation. Its work was overseen by EPMMOP, which is a state-owned mobility and public works company in Ecuador. Project implementation commenced on May 6, 2013. The highway was opened to traffic on June 15, 2018. The originally expected project commencement and completion dates were December 24, 2013 and April 24, 2016, respectively.

Staff comments

1. This project is also known as the Prolongation of the Simon Bolivar Avenue Project. The Chinese project title is 厄瓜多尔西蒙玻利瓦尔大道延长线项目. 2. The China Eximbank loan contract can be accessed in its entirety via https://www.documentcloud.org/documents/20488191-ecu_2013_442_1_of_2 and https://www.documentcloud.org/documents/20488191-ecu_2013_442_2_of_2 and https://www.dropbox.com/scl/fi/qikj0wrnzsl0fjjnrftqh/Anexo-2-Cr-dito-de-US-80-millones-otorgado-por-el-Eximbank.pdf?rlkey=44e38dmy1y0avqtz0nnkmv1gi&dl=0 3. The commercial contract between EPMMOP and Sinohydro Corporation Limited can be accessed in its entirety via https://www.dropbox.com/s/jv4hp8e7s80il7x/2.%20CONTRATO%20PRINCIPAL.pdfdl=0. 4. The Ecuadorian Ministry of Finance loan identification number is 23170000. 5. A subsidiary loan agreement (date June 27, 2013) between Ecuador's Ministry of Finance and the Municipality of the Metropolitan District of Quito can be accessed in its entirety via https://www.dropbox.com/scl/fi/rbd7aze5r7e097l032f6f/Anexo-1-CONVENIO-SUBSIDIARIO-Municipio-de-Quito-y-MEF.pdf?rlkey=ojahmwt363ch166jcda3etuam&dl=0. The second paragraph of Article 133 obligates the Municipality of the Metropolitan District of Quito to assume responsibility for 50% of the debt service payments that arise from the loan.