China Eximbank provides RMB 411 million government concessional loan for Drilling Acquisitions Project (Proyecto de Adquisición de Perforadoras)

Project narrative

On August 10, 2011, China Eximbank signed an RMB 411,000,000 government concessional loan (GCL) agreement [(China EXIMBANK GCL N° (2011) 17 Total N° (367)] with Yacimientos Petrolíferos Fiscales Bolivianos (YPFB) for the Drilling Acquisitions Project (Proyecto de Adquisición de Perforadoras). The GCL carries the following borrowing terms: a 20 year maturity, a 5 year grace period, and a 2% interest rate. The Government of Bolivia ratified the loan agreement through the passage of a law on November 22, 2011. In total, the lender made disbursements worth approximately $16,486,955 between 2011 and 2013, $25,635,798 in 2014, and $19,526,899 in 2015. The borrower made no principal repayments between 2011 and 2016. However, it paid interest and/or fees worth an unknown amount between 2011 and 2012, $719,594 in 2013, $847,239 in 2014, $1,023,150 in 2015, and $1,144,373 in 2016. Then, the borrower made loan repayments worth $4,848,607 in 2017 ($3,703,680 in principal and $1,144,927 in interest/fees), $4,887,409 in 2018 ($3,791,569 in principal and $1,095,840 in interest/fees), $4,602,991 in 2019 ($3,628,041 in principal and $974,950 in interest/fees), an unknown amount in 2020, $4,723,397 in 2021 ($3,846,194 in principal and $877,203 in interest/fees), $4,506,944 in 2022 ($3,730,988 in principal and $775,956 in interest/fees), and $4,181,011 in 2023 ($3,520,460 in principal and $660,551 in taxes/fees). The loan’s (principal) amount outstanding was $16,486,955 as of December 31, 2012, $16,949,292 as of December 31, 2013, $41,862,892 as of December 31, 2014, $59,454,783 as of December 31, 2015, $55,472,554 as of December 31, 2016, $55,257,137 as of December 31, 2017, $48,842,844 as of December 31, 2018, $44,561,679 as of December 31, 2019, $43,988,932 as of December 31, 2020, $41,003,008 as of December 31, 2021, $33,884,398 as of December 31, 2022, and $29,726,825 as of December 31, 2023. YPFB is a Bolivian state-owned enterprise dedicated to the exploration, exploitation, refining, industrialization, distribution and commercialization of oil, natural gas and derived products. The purpose of the Drilling Acquisitions Project (Proyecto de Adquisición de Perforadoras) was for YPFB to acquire tools and drilling equipment for oil well drilling activities. YPFB's Investment Plan indicates that in 2011, the state company will develop an "aggressive" exploration program, which includes the drilling of 15 wells. YPFB used the proceeds of the Eximbank GCL to acquire three oil drilling rigs from China's SJ Petroleum Machinery. One of these rigs was valued at $22.8 million (2,000 hp); another was valued at $18.8 million (1,500 hp); and a third was valued at $18.3 million (1,000 hp), according to Bolivia’s Ministry of Development Planning. All three drills were successfully acquired by and delivered to YPFB by 2016