China Eximbank provides $99 million preferential buyer's credit for Phase 1 of Vaico Irrigation Project (linked to #48911, #62162, #32160)

On February 2, 2012, China Eximbank and the Government of Cambodia signed a $99,303,000 preferential buyer's credit (PBC) agreement [China Eximbank PBC No. (2012) 3 Total No. (191)] for Phase 1 of the Vaico Irrigation Project. The PBC carried the following terms: 20-year maturity, 7-year grace period, and 2% interest rate. The proceeds from the PBC were used to partially finance an EPC contract with Guangdong Construction Engineering Construction Co., Ltd. (GDFC).The purpose of Phase 1 was to (a) restore a set of irrigation canals (measuring 13 km in length) in Koh Sotin district within Kampong Cham Province and Sithor Kandal district within Prey Veng Province; and (b) restore a set of irrigation canals (measuring 27 km in length) in Sithor Kandal district and Kamchay Mea district within Prey Veng Province. The canals are between 44 and 55 meters wide and between 18 and 25 meters deep. Phase 1 also supported two additional canals (measuring 78 km in length) in Svay Chikray commune within Sithor Kandal district and Ta Douk commune within Mesang district in Prey Veng. The ultimate goal of the project was to irrigate an estimated 108,300 hectares of wet-season rice and 27,100 hectares of dry-season rice in Kampong Cham and Prey Veng provinces.GDFC was the EPC contractor responsible for implementation. The project was supervised by Guangzhou Wanan Construction Supervision Company. The project commenced on March 1, 2013 and H.E. Lim Kean Hor, Minister of Water Resources and Meteorology of Cambodia, conducted a site inspection on April 24, 2015. The project was ultimately completed on February 2, 2017.The PBC that supported this project was part of a $302 million package of concessional loans signed by Cambodian Prime Minister Hun Sen on February 2, 2012 (see linked Project ID#32160).China Eximbank and China’s Ministry of Commerce (MOFCOM) also issued loans to support Phase 2 of the Vaico Irrigation Project (captured in Project ID#48911 and ID#62162).

Additional details

This project is also known as Phase 1 of the Vaico River Project.The Chinese project title is Vaico水利发展项目 or 柬埔寨磅湛菠萝勉柴桢省Vaico灌溉发展项目-第一期.

Number of official sources

17

Number of unofficial sources

6