Project ID: 40015

China Eximbank pledges $22 million loan for Fisheries Rehabilitation Project

Pledged amount

$ 30639992.587517288

Adjusted pledged amount

$ 30639992.587517288

Constant 2021 USD

Not recommended for aggregates

This project is not recommended for use in creating aggregated sums. See the documentation for more information about this criteria.

Summary

Funding agency [Type]

Export-Import Bank of China (China Eximbank) [State-owned Policy Bank]

Recipient

Micronesia

Sector

Agriculture, forestry, fishing (Code: 310)

Flow type

Loan

Level of public liability

Central government debt

Infrastructure

Yes

Category

Intent

Development (The next section lists the possible statuses.)

Commercial

Development

Representational

Mixed

Financial Flow Classification

Vague (Official Finance) (The next section lists the possible statuses.)

Official Development Assistance

Other Official Flows

Vague (Official Finance)

Flows categorized based on OECD-DAC guidelines

Project lifecycle

Status

Pipeline: Pledge (The next section lists the possible statuses.)

Pledge

Commitment

Implementation

Completion

Suspended

Cancelled

Milestones

Commitment

2010-01-01

Description

In the summer of 2009, a team of Chinese technicians visited Micronesia to carry out design inspections of potential fish processing projects financed by preferential loans from the Chinese government. This eventually materialized as the Luen Thai Fisheries project (or Fisheries Rehabilitation Project or 密克罗尼西亚渔业复兴项目) financed by a China Exim Bank concessional loan facility worth $22 million USD with a 5-year grace period and a 20-year maturity. Congressional Bill No. 16-124 also says the PRC was willing to convert the loan "into grant assistance if the fisheries project ultimately fails." According to Congressional Bill No. 16-124, on 17 June 2010, the FSM President was formally authorized to negotiate and execute this loan agreement on behalf of the Government, but AidData failed to find evidence of a signed final loan agreement marking Chinese commitment. The loan proceeds were to be used to refurbish four processing plants (one for each FSM state) and purchase eleven ships, three of which could be super long liners for frozen fish shipment. The National Government of the Federated States of Micronesia is the borrower, FSM Development Bank is the loan manager, and Luen Thai Fishing Ventures (LTFV) is the operator for the processing plants. LTFV was supposed to make lease payments to the FSM Government for the use and operation of the plants, and the FSM Government would in turn use that revenue to repay the China Exim Bank loan. According to Congressional Resolution No. 16-173, in November 2010, the FSM National Oceanic Resource Management Authority (NORMA) and LTFV signed an access agreement lasting 10 years. The plants were supposed to be constructed and/or refurbished entirely with materials imported from China, but AidData could not identify any implementing contractors. It is unclear if this project was ever carried out with Chinese financing since it was plagued by accusations of political interference and corruption.

Number of official sources

15

Number of total sources

23

Download the dataset

Details

Cofinanced

No

Direct receiving agencies [Type]

Government of Micronesia, Federated States of [Government Agency]

Implementing agencies [Type]

Luen Thai Fishing Venture (LTFV) [Private Sector]

Micronesia National Oceanic Resource Management Authority (NORMA) [Government Agency]

Federated States of Micronesia Development Bank (FSMDB) [State-owned Bank]

Loan Details

Maturity

20 years

Grace period

5 years

Bilateral loan

Investment project loan