China Eximbank provides $150 million preferential buyer's credit for Railway Passenger Car Project

Project narrative

On February 22, 2016, China Eximbank and the Government of Cuba signed a $150 million preferential buyer's credit (PBC) agreement for the Railway Passenger Car Project. The proceeds of the loan were to be used by the borrower to finance 85% of the cost of a commercial contract. The loan carried the following borrowing terms: 2% interest rate and 15-year maturity. The purpose of this project was to facilitate the acquisition of 240 railway cars, and this was the first time in 44 years that Cuba had received new railroad cars. China National Machinery Import and Export Corporation (CMC) and China General Technology were the contractors responsible for project implementation. On May 20, 2019, the first batch of 56 railway cars was successfully delivered, which was followed-up by an additional 24 railway cars two weeks later. These railway cars were first put into operation on July 15, 2019. Although it was originally planned that the railways cars would continue to arrive in Havana at a rate of 80 each year from 2019 to 2021, there is no evidence that any additional railway cars were ever delivered after the original batch of 80.