China Eximbank provides $215 million preferential buyer’s credit for 159 km El Espino-Charagua-Boyuibe Highway Construction Project (Linked to Record ID#36350)

Project narrative

On December 19, 2016, China Eximbank and the Government of Bolivia signed a $215,050,000 preferential buyer’s credit (PBC) agreement [China Eximbank PBC 2016 (22) 410] for the El Espino-Charagua-Boyuibe Highway Construction Project. The PBC was officially approved through the passage of a law on January 27, 2017. The law stipulates that the loan will be repaid by the General Treasury of the Nation (TGN). The PBC carries an interest rate of 3%, a maturity of 15 years, and 5 5-year grace period. The lender made no disbursements in 2017. It made disbursements worth $56,615,003 in 2018, $41,023,917 in 2019, $0 in 2020, $60,425,209 in 2021, $42,790,235 in 2022, and $14,109.219 in 2023. The borrower made no principal repayments between 2016 and 2022. However, it paid interest and/or fees worth $1,075,250 in 2017, $1,066,290 in 2018, $2,413,388 in 2019, an unknown amount in 2020, $3,830,692 in 2021, and $4,918,840 in 2022. The borrower made a loan repayment worth $27,560,443 in 2023 ($21,505,000 in principal and $6,055,443 in interest/fees). The loan’s (principal) amount outstanding was $0 as of December 31, 2016, $0 as of December 31, 2017, $56,615,003 as of December 31, 2018, $97,638,920 as of December 31, 2019, $97,638,920 as of December 31, 2020, $158,064,129 as of December 31, 2021, $200,854,364 as of December 31, 2022, and $193,458,583 as of December 31, 2023. The project involves the construction of 21 bridges, 360 sewers, 16 bus stops, 2 toll and weigh stations, 2 roundabouts in Charagua, 2 overpasses for the crossing of the railway line, and 1 viaduct, among other things. The localities that will benefit from the project are Tacobo, Yaguarenda, El Espino, Guariri, Masavi, Takuru, Saipirú, Taputá, Guirapukuti, Pirití, Charagua, Machipo, Pueblo Nuevo, San Antonio de Parapetí, Ipitakuape, Itatiki, Camatindi, and Boyuibe. The road will connect these localities with the city of Santa Cruz, Chuquisaca, Tarija, and with the Republic of Paraguay. The contractor is China Railway Group. This 159.4 km road construction project has entered implementation. The Bolivian Highway Administration (ABC) issued an order to commence work to China Railway Group Limited on June 16, 2017. The project entered implementation at the end of 2017 and was expected to take 36 months to complete. The road was about 50% complete as of February 8, 2020. The project was delayed in 2020 due to the COVID-19 pandemic, but was reactivated in mid-2021. The project was finally completed on September 21, 2023, when an opening ceremony was held.