Project ID: 49358

[Cancelled] China Eximbank provides $50 million preferential buyer’s credit for Dili Drainage System Upgrade Project

Commitment amount

$ 56113778.47894762

Adjusted commitment amount

$ 56113778.47894762

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

Timor-Leste

Sector

Water supply and sanitation (Code: 140)

Flow type

Loan

Level of public liability

Central government debt

Infrastructure

Yes

Category

Intent

Mixed (The next section lists the possible statuses.)

Commercial

Development

Representational

Mixed

Financial Flow Classification

OOF-like (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

Cancelled (The next section lists the possible statuses.)

Pledge

Commitment

Implementation

Completion

Suspended

Cancelled

Milestones

Commitment

2015-12-18

Description

On December 18, 2015, China Eximbank and the Government of Timor-Leste signed a $50 million preferential buyer’s credit (PBC) agreement [CHINA EXIMBANK PBC NO. 2015 (3) TOTAL NO. (345)] for the Dili Drainage System Upgrade Project. The PBC carried the following terms 2% interest rate, 20-year maturity, 5-year grace period, 0.25% commitment fee, 0.25% management fee. The scheduled period of repayment was July 14, 2022 to January 14, 2037. The proceeds of the loan were to be used by the borrower to finance a commercial contract [ID# LCB/053/MPW-2014] with Shandong Hi-Speed Group Co., Ltd (SDHS). However, the loan agreement did not gain the approval of Timor-Leste's Audit Court in December 2015 due to legality issues. The Audit Court cited the lack of involvement of the Timorese labor force as a reason for its veto. The project scope involved drainage channel diversion, river improvements, flood retention basins, and the construction and rehabilitation of drainage channels. There were two proposed diversion channels under the project. The first is Mascarenhas Diversion Channel, a new 2.1 mm long drainage infrastructure located in the hillside above Suco Mascarenhas to divert the 0,45 km2 catchment flow of the mountain above Caicoli, into the Kuluhun River. The second is Vila Verde Diversion Channel, a new 975m long drainage infrastructure located in the hillside above Suco Vila Verde, one of the new drainage works foreseen for Phase III of the DDIUP to divert the 0,134 km2 catchment flow of the mountain above Vila Verde and convey it into the Maloa river bed. Both Channels are designed with a carrying capacity of 100-year storm and predicted to reduce up to 50% of the storm water in these catchments. There were also proposed river improvements under the project. These improvements consist of approximately 12,5 km of a total three rivers (Maloa, Kuluhun and Santana Rivers) that flow through the urban area of Dili, rivers that are found to be one of main causes of the periodical flooding of the Dili downtown urban area. The river design improvements will generally consist of widening and deepening of the river bed by excavation, adjustment of river alignment, construction of new retaining walls along the river banks (bank stabilization), replacement of the existing bridges or bridge/weir or construction of side seawalls at the river mouth to maintain the velocity of the river flow. These improvements will increase the rivers’ drainage capacity and storm water runoff from the diversion channels and the urban area can be diverted into these systems. Two flood retention basins (Caicoli and Aimutin) were proposed for construction mainly to provide temporary storage for storm water runoff and delay the outflow and reduce the outlet flow rate for storms of higher average recurrence interval. The areas are also proposed for use in the dry season to maximize the benefits from the structure and enhance aesthetics and urban function of the location and the city of Dili as a whole. The project would also involved the construction and rehabilitation of drainage channels. The drainage channel system is divided in major and minor drains (main, secondary and tertiary types) based on the size of the channel and whether they define the structure of drainage network or not. The main drainage network is composed of rectangular or trapezoidal open channels, some collectors and some buried channels, most of them discharging directly into the ocean. The purpose of rehabilitation of the existing channels and/or construction of new channels is to improve the carrying capacity of the existing drainage system that will enhance flooding mitigation in adjacent areas. Works to be performed consist of cleaning, excavation of sediment, re-shaping, and re-sloping of channels. The project would have been located in Dili Municipality, covering a large portion of the Dili Urban area, close to 30 km2 that includes the Dom Aleixo, Vera Cruz, Nain Feto and Cristo Rei Administrative Posts. The project area is bordered by the Wetar Straight Sea to the north, the Dili surrounding mountain range from the Northeast [Bidau Santana] to the Southeast [Becora Hill] and follows Westwards along the mountain range foothill towards the Comoro Riverbed, following on North-westwards to the foothill of the range that separates Comoro (airport area) from Tasitolu (in the Dili-Liquiça Road) and finally turning North bound to the West end of the Dili Nicolau Lobato Airport runway.

Additional details

1. This project is also known as the Dili Drainage Infrastructure Upgrading Project (DDIUP). 2. In the Overseas Development Finance Dataset that Boston University’s Global Development Policy Center published in December 2020, the Dili Drainage System Upgrade Project is identified as a project that is supported by a China Eximbank loan. However, AidData has status-coded it as a cancelled project in light of of the Audit Court’s decision not to approve the loan agreement.

Number of official sources

15

Number of total sources

18

Download the dataset

Details

Cofinanced

No

Direct receiving agencies [Type]

Government of Timor-Leste [Government Agency]

Implementing agencies [Type]

Shandong Hi-Speed Group Corporation (山东高速集团有限公司) [State-owned Company]

Loan Details

Maturity

20 years

Interest rate

2.0%

Grace period

5 years

Grant element (OECD Grant-Equiv)

48.97%

Bilateral loan

Export buyer's credit

Investment project loan

Preferential Buyer's Credit