China Eximbank provides RMB 204.9 million government concessional loan for Container/Vehicle Inspection System Project

Project narrative

On July 14, 2010, the Government of the People's Republic of China and the Government of the Republic of Serbia entered into a Framework Agreement on the Provision of Government Concessional Loans by China to Serbia. On the same day, China Eximbank and the Government of the Republic of Serbia signed a government concessional loan (GCL) agreement [CHINA EXIMBANK GCL (2010) NO.34 TOTAL NO. (331)] worth RMB 204,900,000 for the Container/Vehicle Inspection System Project. The loan (GCL) carries the following borrowing terms: a 3% interest rate, a 0% default (penalty) interest rate, a 15-year maturity, a 3-year grace period, a 0.75% commitment fee, and a 1% management fee. The proceeds of the loan were to be used by the borrower to finance a $30 million commercial contract [number NUC/SRB 09-243C] between the Customs Administration of Serbia’s Ministry of Finance and Nuctech Company Limited, which was signed on September 21, 2009. The borrower made principal repayments worth approximately $2,693,000 in 2019, $1,650,000 in 2020, $2,315,000 in 2021, and $3,514,000 in 2022. The loan’s (principal) amount outstanding was $17,373,000 as of December 31, 2018, $14,680,000 as of December 31, 2019, $13,030,000 as of December 31, 2020, $10,715,000 as of December 31, 2021, and $7,201,000 as of September 31, 2022. The purpose of the Container/Vehicle Inspection System Project was to facilitate the acquisition and maintenance of one-unit NUCTECHTM AC 6015 XN Air Cargo Inspection System, ten units of NUCTECHTM MT1213LH Container/Vehicle Inspection Systems, and two units of NUCTECHTM CX100100TI X-ray Inspection Systems. Nuctech Company Limited was the contractor responsible for project implementation. The project was completed on July 16, 2012. At that time, the container inspection system that Serbia acquired from Nuchtech was reportedly the most advanced in the entire European region.