China Eximbank provides $89.15 million preferential buyer's credit for Agno River Integrated Irrigation Project

On November 9, 2009, China Eximbank and the Government of the Philippines signed a $89.15 million preferential buyer’s credit (PBC) agreement [China Eximbank PBC 2009 No. (23)] for the Agno River Integrated Irrigation Project (ARIIP). The estimated borrowing terms of the PBC are as follows: a 20 year maturity, a 5 year grace period, and a 3% interest rate. The final maturity date of the PBC is January 21, 2030. The loan entered into force on February 1, 2010. The proceeds of the PBC were to be used by the borrower to partially finance a commercial contract (No. ARIIPI-C-1) between the National Irrigation Agency of the Philippines and China CAMC Engineering Co., Ltd. (CAMCE), which was signed on May 25, 2009. The project involved the construction of a 350 meter long and 18 meter high overflow dam (San Roque Power Dam) on the Agno River and a regulating reservoir that was aimed at providing year-round irrigation to 34,450 hectares of farmlands that would benefit 29,207 farmers in Pangasinan province within the Ilocos Region of Luzon. The ultimate purpose of the project was to provide water for irrigation through the construction of new diversion and canal systems, to rehabilitate existing irrigation facilities to improve water delivery in the service area, to restore non-functional service area through improved water delivery or augmentation of water supply, to increase agricultural productivity and farmers income, to generate employment. The municipalities that were expected to benefit from the project included Asingan, Balungao, Bautista, Binalonan, Calasiao, Laoac, Manaoag, Mapandan, Mangaldan, Natividad, Sta. Maria, San Manuel, San Nicolas, San Quintin, Sta. Barbara, Tayug, Villasis, Urdaneta City. CAMCE was the EPC contractor responsible for implementation. The owner of the project is the National Irrigation Agency of the Philippines. The project commenced in February 2010 and it was completed ahead of schedule on June 20, 2013. Then, on July 9, 2014, the National Irrigation Agency of the Philippines issued a final acceptance certificate (FAC) for the project. A formal project completion ceremony took place on August 8, 2014.

Additional details

1. The Chinese project title is 菲律宾阿格诺河综合灌溉项目 or 阿格诺河综合灌溉项目. 2. On August 17, 2016, Ruben S. Reinoso, Jr., Assistant Director General for Investment Programming at the National Economic and Development Authority (NEDA) of the Republic of the Philippines, identified a number of projects in the Philippines financed with preferential buyer's credits from China Eximbank. He also disclosed that the PBC borrowing terms were as follows: 20 year maturity, 5 year grace period, and 3% interest rate (see https://appfi.ph/images/2016/presentations/Symposium/3.-Reinoso.pdf). Therefore, AidData assumes for the time being that these borrowing terms applied to the specific PBC that financed the Agno River Integrated Irrigation Project. 3. The Government of Philippines loan identification number for the China Eximbank PBC that supported the Agno River Integrated Irrigation Project is CHI-6. Its loan identification number in the Debt Management and Financial Analysis System (DMFAS) is 29626000. 4. In the Overseas Development Finance Dataset that Boston University’s Global Development Policy Center published in December 2020, the Agno River Integrated Irrigation Project is identified as being financed with an $85 million China Eximbank loan. AidData relies upon the face value of the loan that is reported by the Government of the Philippines ($89.15 million).

Number of official sources

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