China Eximbank provides RMB 350 million government concessional loan for Phase 1 of Tanna and Malekula Road Rehabilitation Project (Linked to Record ID#62666)

Project narrative

On December 31, 2013, a framework agreement on the provision of concessional loans to support road reconstruction on Tanna and Malekula Islands was signed by the Chinese Government and the Government of the Republic of Vanuatu. Then, on April 14, 2014, China Eximbank and the Government of the Republic of Vanuatu (represented by the Ministry of Finance and Economic Management) signed an RMB 350,000,000 government concessional loan (GCL) agreement [CHINA EXIMBANK GCL NO. 2014 (1) TOTAL NO. (504)] for Phase 1 of the Tanna and Malekula Road Rehabilitation Project. The borrowing terms of the GCL were as follows: a 2% interest rate, a 0% default (penalty) rate, a 20-year maturity, a 7-year grace period, a 0.25% management fee, and a 0.25% commitment fee. The borrower was to use the proceeds of the GCL to finance a commercial contract between the Ministry of Infrastructure and Utilities of the Republic of Vanuatu and China Civil Engineering Construction Corporation (CCECC), which was signed on July 12, 2013. The purpose of the project was to upgrade 30 km of roads on Tanna Island and 15 km of roads on North Malekula Island. The road on Tanna Island runs from Cross Roads Isangel to Port Resolution (i.e. from Whitegrass Airport through Lenakel to Green Point), and the road on North Malekula Island runs from Lakatoro to Metenesel (i.e. Norsup to Lakatoro to Litzlitz and Aop Corner to Unmet Station). CCECC was the contractor responsible for implementation. Construction began in December 2014. The project was officially completed on January 6, 2019. China Eximbank also provided a second, RMB 350 million government concessional loan for Phase 2 of the Tanna and Malekula Road Rehabilitation Project (captured in Record ID#62666).