China Eximbank provides RMB 577 million government concessional loan for Consultancy Services for Extension of Southern Expressway Project (Linked to Record ID#38337, #53526, #33488 and #53522)

Project narrative

On January 22, 2017, China Eximbank and the Government of Sri Lanka signed an RMB 577,000,000 government concessional loan (GCL) agreement [CHINA EXIMBANK GCL NO (2015) Total No (566)] for consultancy services related to design review and construction supervision of civil works on the Extension of Southern Expressway Project (ESEP). The GCL will cover the full cost of the project. It carries the following borrowing terms: a 2% interest rate, a 20 year maturity, and a 6 year grace period. China Eximbank disbursed RMB 83,293,431 in 2018, RMB 94,710,818 in 2019, RMB 170,176,661 in 2020, and RMB 14,013,487 in 2021. The loan had achieved a 62.7% disbursement rate (RMB 362,194,397 out of RMB 577,000,000) as of December 31, 2021. The borrower made no repayments from 2017 to 2021. The loan's amount outstanding was RMB 83,293,431 as of December 31, 2018, RMB 178,004,249 as of December 31, 2019, RMB 348,180,910 as of December 31, 2020, and RMB 362,194,397 as of December 31, 2021, and RMB 362,194,397 as of June 30, 2022. The objective of ESEP is to enhance the efficiency of the transport system by linking the country's major economic centers with Colombo City and other parts of the country. The proceeds from the GCL are being used to fund the provision of consultancy services related design review and construction supervision of civil work of the Southern Expressway from Matara to Hambantota. China Railway First Survey and Design Institute Group Co. Ltd. (FSDI) is the contractor responsible for project implementation. This project entered implementation on January 22, 2017. As of March 31, 2018, the consultancy work for all four sections of ESEP was on schedule. The expected project completion date is 2022.