China Eximbank provides RMB 280 million government concessional loan for Dominica State College and State House Expansion and Reconstruction Project (Linked to Project ID #39846)

On September 5, 2009, the Chinese Government and the Government of Dominica signed an RMB 280 million preferential loan framework loan agreement for the Dominica State College and State House Expansion and Reconstruction Project. Then, in 2010, China Eximbank and the Government of Dominica signed an RMB 280 million (EC$110,750,000) government concessional loan (GCL) agreement for the Dominica State College and State House Expansion and Reconstruction Project. Dominica’s Parliament authorized the loan in July 2010. The GCL carries the following borrowing terms: a 20-year maturity, a 5-year grace period, and a 2% interest rate. The borrower is responsible for repaying the loan in 31 semi-annual installments. The proceeds of the GCL were to be used by the borrower to finance a commercial contract with Shanghai Construction Group. The purpose of the Dominica State College expansion and reconstruction project component is the construction of three new buildings, water supply tank and rehabilitation works on existing buildings. One of the three buildings is multi functional and houses classrooms and laboratories for Arts, Science and administration. The second building houses a library and auditorium and the third building houses the Agricultural Training Centre. Also included in the Dominica State College expansion and reconstruction project component was the construction of a food court, a car park, a water supply tank, new sewerage lines, and landscaping. The State House expansion and reconstruction project component involved the construction of the new residence for the President, the renovation of the Old State House; the construction of a utility building; the construction of office accommodations for all the commissions under the supervision of the President (including the Public Service Commission, the Police Service Commission, the Integrity Commission and the Electoral Commission); the beautification and landscaping of the grounds; the construction of a parking lot; the construction of a new road; and the construction of a conference room with the capacity to accommodate 200 people. Shanghai Construction Group was the contractor responsible for project implementation. On May 27, 2011, the Dominica State College expansion and reconstruction project component was officially launched. Construction began in October 2011, and by the end of 2011, the project had achieved a 60% completion rate. Construction was completed in 2013. The new college opened to students in 2013-2014 academic year, serving as a premier secondary education provider in the country. The State House expansion and reconstruction project component was officially launched on May 27, 2011. By June 2011, it had achieved a 60% completion rate. The renovated and expanded State House was handed over to the local authorities in August 2013. The president moved in on March 13, 2014.

Additional details

1. The Chinese project title is 的多米尼克国立大学和国宾馆改扩建. 2. This loan constituted 11% of Dominca's GDP at the time that it was issued. 3. Some sources suggest that the proceeds of the loan were also used to finance the rehabilitation of major roads in Roseau, including Independence Street, Great George Street, King George V Street, Hanover Street and housing development in Roseau. This issue warrants further investigation. 4. The World Bank’s Debtor Reporting System (DRS) identifies the face value of the China Eximbank GCL as $41,361,504.

Number of official sources

10

Number of total sources

20