China Eximbank provides RMB 117.7 million government concessional loan for Rarotonga Water Ring Main Upgrade Project

Project narrative

On August 30, 2012, China, New Zealand, and the Cook Islands jointly announced the ‘Cook Islands Water Partnership’—locally known as Te Mato Vai—at the Pacific Islands Forum. This tripartite initiative aimed to upgrade Rarotonga’s aging water supply network. The announcement was made in a joint statement by China’s Vice Foreign Minister Cui, Cook Islands Prime Minister Henry Puna, and New Zealand Prime Minister John Key. In December 2012, China Eximbank and the Government of the Cook Islands signed an RMB 117.7 million (approx. USD 18.7 million or NZD 22.8 million) government concessional loan (GCL) agreement to support the project. The GCL carried a 2% interest rate, a 20-year maturity, and a 5-year grace period. The final maturity date of the loan is December 2032. According to financial statements, the outstanding amount was RMB 24.64 million as of September 2019 and RMB 22.59 million as of December 2019. The purpose of Te Mato Vai was to deliver potable water to Rarotonga’s residents by laying 26 kilometers of new ring mains and upgrading key water intakes. The project was implemented in two main stages. Stage 1 began on February 20, 2014, and focused on replacing the island’s inner and outer water ring mains and connecting them to the existing network. This work, carried out by China Civil Engineering Construction Corporation (CCECC), was completed in December 2016 and followed by a 12-month defect liability period. Testing was conducted by Opus International Consultants Ltd., and CCECC agreed to remediate any deficiencies at its own cost. The project was formally handed over to local authorities on February 16, 2017. Stage 2, which began in 2018, involved the upgrade of 10 existing water intakes across the island and was implemented by McConnell Dowell in collaboration with local contractors. This second phase faced challenges, including complex negotiations with landowners across 10 intake sites, which were resolved with their eventual support for community development. On October 24, 2023, the project was officially declared complete at a landowner recognition ceremony for the new Papua water intake in Vaimaanga. Prime Minister Mark Brown hailed Te Mato Vai as a “historic” initiative—the largest infrastructure project undertaken by the Cook Islands since the construction of the Rarotonga International Airport. The total project cost reached approximately NZD 90 million and was jointly funded by China, New Zealand, and the Cook Islands Government. The Papua intake, one of the final components, had already been operational for six months prior to the handover, undergoing extensive testing including over 10,000 environmental and quality assessments. Moving forward, management of the upgraded water infrastructure will be overseen by the newly established To Tatou Vai Authority.