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Overview

China Eximbank provides RMB 294 million government concessional loan for Goroka University Dormitory Reconstruction and Expansion Project

Commitments (Constant USD, 2023)$51,686,462
Commitment Year•2011Country of Activity•Papua New GuineaDirect Recipient Country of Incorporation•Papua New GuineaSector•EducationFlow Type•Loan

Status

Project lifecycle

Completion

Pipeline: PledgePipeline: CommitmentImplementationCompletion

Timeline

Key dates

Commitment date
Jan 25, 2011
Start (actual)
Jul 14, 2011
End (actual)
Dec 5, 2014

Geospatial footprint

Map overview

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The purpose of the project was to construct new student accommodations on the Goroka University Campus in in Eastern Highlands Province. More detailed locational information can be found at https://www.openstreetmap.org/way/804861440.

Stakeholders

Organizations involved in projects and activities supported by financial and in-kind transfers from Chinese government and state-owned entities

Ultimate beneficial owners

At least 25% host country ownership

Funding agencies

State-owned Policy Banks

  • Export-Import Bank of China (China Eximbank)

Receiving agencies

Government Agencies

  • Government of Papua New Guinea

Implementing agencies

State-owned companies

  • Guangdong Construction Engineering Group Co.

Loan desecription

China Eximbank provides RMB 294 million government concessional loan for Goroka University Dormitory Reconstruction and Expansion Project

Interest rate (t₀)•2%Interest type•Fixed Interest Rate

Narrative

Full Description

Project narrative

On April 15, 2009, during Papua New Guinea Prime Minister Somare's visit to China, the Chinese Government and the Government of Papua New Guinea signed an RMB 800 million ($117.11 million) preferential loan framework agreement. The agreement was signed by Papua New Guinea’s Commerce and Industry Minister, Gabriel Kapris, and China’s Vice Minister for Commerce, Yi Xiaozhun. Of this, $95 million was reportedly earmarked for the construction of 10 tuna canneries in Madang Marine Industrial Zone Park and $22.11 million was reportedly earmarked for the construction of a student residence project at the University of Goroka. The preferential loan framework agreement specified that any subsidiary loans approved under the framework agreement would carry a 2% interest rate. Then, on January 25, 2011, China Eximbank and the Government of Papua New Guinea signed an RMB 294 million (approximately 118 million kina) government concessional loan (GCL) agreement for the Goroka University Dormitory Reconstruction and Expansion Project. The proceeds of the GCL were to be used by the borrower to finance a commercial contract with Guangdong Foreign Construction Company (GDFC). The purpose of the project was to construct new student accommodations on the Goroka University Campus in in Eastern Highlands Province. There were five stages to this project. The PNG Government funded stage 1; the China Eximbank loan funded stages 2-4; stage 5 was jointly funded. The design of the project was undertaken by a local architect, which is unusual in a Chinese Government-financed project. GDFC was the contractor responsible for implementation. A foundation laying ceremony took place on July 14, 2011 and the project was completed in December 5, 2014. Today, this project is cited as a successful Chinese development project in the Pacific — in part due to the presence of significant local input and oversight.

Staff comments

This project is also known as the University of Goroka (UOG) Students’ Residence Project. The Chinese project title is 巴新戈罗卡大学学生宿舍扩建项目. The University of Goroka is the largest teacher training institution in the country.