China Eximbank provides RMB 246.1 million government concessional loan for MOI acquisition of cars, patrol boats, police vehicles and helicopters (Linked to Record ID#98029, 96221)

Project narrative

On March 11, 2015, the Parliament of Myanmar approved a government proposal to accept a RMB 246,149,000 ($39 million) government concessional loan (GCL) from China Eximbank for the Ministry of Interior to purchase 985 cars, patrol boats, vehicles, and helicopters for the country's police force. The GCL agreement, which was signed by China Eximbank and the Government of Myanmar on August 28, 2015, carried the following borrowing terms: a 20 year maturity, a 5 year grace period, a 4.5% interest rate, a 0.4% commitment fee, and a 0.4% management fee. China National Aero-Technology Import & Export Corporation (CATIC) is the contractor responsible for implementation. The Ministry of Interior (Home Affairs) had received 8 vehicles from CATIC by December 2015. This equipment acquisition project is part of a larger police force upgrading project (警察部队升级项目) and it was designed to address an equipment shortage causing problems in the police force. There are some indications that the China Eximbank loan for the acquisition of 985 cars, patrol boats, vehicles, and helicopters for the country's police forcea may have financially underperformed vis-a-vis the original expectations of the lender. In 2020, China Eximbank and the Government of Myanmar signed a debt suspension agreement as part of the G-20 Debt Service Suspension Initiative (DSSI). Under the terms of the agreement, the lender agreed to suspend principal and interest payments due between May 1, 2020 and December 31, 2020 under 3 buyer’s credit loan (BCL) agreements, 6 government concessional loan (GCL) agreements, and 27 preferential buyer’s credit (PBC) agreements (as captured via Record ID#98029). Debt service payments under many of these loan agreements were again deferred in 2021 (as captured via Record ID#96221).