China Eximbank provides $362.2 million preferential buyer’s credit for El Sillar Double Track Highway Project

On December 19, 2016, China Eximbank and the Government of Bolivia signed a $362,209,356.76 preferential buyer’s credit (PBC) agreement [CHINA EXIMBANK PBC 2016 (38) 426] with the Government of Bolivia for the El Sillar Double Track Highway Project. The PBC agreement was ratified through the passage of a law on January 27, 2017. It carries the following borrowing terms: an interest rate of 3%, a 6 year grace period, and a 15 year maturity. The borrower was expected to use the proceeds of the PBC to partially finance a $440 million commercial contract with Sinohydro, which was signed on December 3, 2015. The lender made no disbursements in 2016. It made disbursements worth $72,441,871 in 2017, $29,985,478 in 2018, and $63,023,643 in 2019, $14,561,012 in 2020, and $87,138,784 in 2021. The borrower made no principal repayments between 2015 and 2021. However, it paid interest and/or fees worth $1,811,047 in 2017, $2,882,410 in 2018, $4,417,717 in 2019, an unknown amount in 2020, and $6,514,389 in 2021. The loan’s (principal) amount outstanding was $0 as of December 31, 2016, $72,441,871 as of December 31, 2017, $102,427,350 as of December 31, 2018, $165,450,992 as of December 31, 2019, $180,012,004 as of December 31, 2020, and $267,150,752 as of December 31, 2021. The project involves the construction of a four-lane, 28 km road, 28 bridges, 2 tunnels and retaining walls. It is located in the Chapare province, between kilometer 100 and kilometer 128 on the new road to Santa Cruz. Sinohydro is the contractor responsible for project implementation. This project entered implementation in 2018. As of March 2020, the project had achieved a 64% completion rate. By September 2021, more than 67% of the project was complete.

Additional details

1. The Chinese project title is 艾尔西亚公路项目. The Spanish project title is Proyecto Construccion del Tramo Central Doble Via 'El Sillar'. 2. Gaceta Official Source can be accessed by using the url (http://gacetaoficialdebolivia.gob.bo/app/webroot/index.php/normas/buscar) and searching for 'Decreto Supremo 3014' [Supreme Decree 3014] or 'China – EXIMBANK’.

Number of official sources

15

Number of total sources

28