China Eximbank provides RMB 600 million government concessional loan for Port of St John’s Renovation and Extension Project

On December 21, 2007, the Government of Antigua and Barbuda and China Civil Engineering Construction Corporation (CCECC) signed a Memorandum of Understanding (MOU) with regard to utilizing a Chinese Government Concessional Loan to execute the Port of St John’s Renovation and Extension Project. On November 18, 2013, the Government of Antigua and Barbuda and China Civil Engineering Construction Corporation (CCECC) signed an updated Memorandum of Understanding (MOU) with regard to utilizing a Chinese Government Concessional Loan to execute the Port of St John’s Renovation and Extension Project. Then, on November 11, 2014, the Government of Antigua and Barbuda submitted a project proposal and application for a Chinese Government Concessional Loan to the Embassy of the People’s Republic of China in Antigua. On December 22, 2014, Antigua and Barbuda Port Authority and CCECC signed an RMB 1,590,000,000 commercial (‘design and construction’) contract (#AB/PMP-01) for the Port of St John’s Renovation and Extension Project. Then, on May 25, 2015, Antigua and Barbuda Port Authority and CCECC signed a revised commercial contract (#AB/PMP-02) worth RMB 585,000,000. Then, on November 25, 2016, the Export-Import Bank of China and the Government of Antigua and Barbuda signed an RMB 600 million government concessional loan (GCL) for the Port of St John’s Renovation and Extension Project. Less than a month later, on December 15, 2016, the Export-Import Bank of China and the Government of Antigua and Barbuda signed a framework agreement for a RMB 600 million government concessional loan (GCL) for the Port of St John’s Renovation and Extension Project. The GCL carried the following borrowing terms: a 2 percent interest rate, a grace period of 5 years, and a maturity of 21.75 years. The final maturity date of the GCL is March 19, 2038. The proceeds of the GCL were to be used by the borrower to finance the RMB 585,000,000 commercial contract that was signed on May 25, 2015. The remaining RMB 15,000,000 was to be used by the borrower to finance a contract with Guangxi Bagui Project Supervision and Consultant Co. Ltd for project management and supervision activities related to the Port of St John’s Renovation and Extension Project. The borrower also agreed to deposit the operating income generated by the project in an escrow account to support debt service requirements. The purpose of the project is to bring about the long-awaited transformation of the St. John’s Port from a break-bulk facility to a modern container port facility that is capable of increasing annual cargo throughput from 16,000 containers to 80,000 containers. It involves the construction of a new Customs and Port Authority headquarters, the expansion of a quay (extension of the existing pier), the construction of a new warehouse for processing goods, the extension of a sea wall, the dredging of the harbor, and the establishment of a logistics park. Some of the expected project benefits include improved ship-to-shore interface; greater efficiency in the clearance of goods; automated scanning and computerized handling/clearance of goods; reduced ground transportation costs, and greater ease of doing business. CCECC was the EPC contractor responsible for project implementation. A formal groundbreaking ceremony took place on January 15, 2018. However, the project did not commence until September 8, 2018. It was originally envisaged that the project would take three years to implement. Satellite imagery suggests that, as of July 2020, a 320-meter quay expansion and the construction of a new warehouse were complete (or nearly completed). Satellite imagery from July 2020 also suggests that, on the northern side of the port, land had been built up for what is likely the new sea wall and a set of buildings and a parking lot had been constructed, while another pier to the south was being added to the existing cruise terminal. The construction of the container terminal was officially completed and handed over to the local authorities on October 13, 2020. St. John’s Port has reportedly become the only port with professional container transshipment terminal and automated cross-transshipment capacity in eastern Caribbean region, thus helping Antigua and Barbuda in building itself into a regional logistics center and promoting the country’s economic and social development.

Additional details

1. This project is also known as the St John’s Port Redevelopment Project, the St. John’s Deep Water Harbor Rehabilitation Project, the Port at Rat Island Renovation Project, and the Deep Water Harbour Project. The Chinese project title is 安巴深水港改扩建项目 or 承建的圣约翰港改扩建项目 or 安提瓜和巴布达圣约翰港改扩建项目. 2. The December 21, 2007 MOU and the November 18, 2013 MOU between the Government of Antigua and Barbuda and China Civil Engineering Construction Corporation (CCECC) can be accessed in their entirety via https://www.dropbox.com/s/vjkox4a9z6hvfns/21%20December%202007%20MOU%20on%20St.%20John%27s%20Deep%20Water%20Harbour%20Development%20Project.pdf?dl=0 and https://www.dropbox.com/s/akcffqqsxxs6vfz/18%20December%202013%20MOU%20on%20St.%20John%27s%20Deep%20Water%20Harbour%20Project.pdf?dl=0. A July 2014 project proposal for the Port of St John’s Renovation and Extension Project can be accessed via https://www.dropbox.com/s/luya8dpkut98a9b/7%20July%202014%20Port%20of%20St.%20Johns%20Modernization%20Project%20Proposal.pdf?dl=0/. The commercial contracts signed by the Antigua and Barbuda Port Authority and CCECC on December 22, 2014 and May 25, 2015 can be accessed via https://www.dropbox.com/s/y3f7rh54vbkvkm7/22%20Deccember%202014%20Commercial%20Contract%20for%20Port%20of%20St.%20John%27s%20Modernization%20Project.pdf?dl=0 and https://www.dropbox.com/s/5pawronfq6emxqt/25%20May%202015%20Commmercial%20Contract%20for%20Port%20of%20St.%20Johns%20Renovation%20and%20Extension%20Project.pdf?dl=0. A May 2015 project proposal for the Port of St John’s Renovation and Extension Project can be accessed via https://www.dropbox.com/s/z2qtnkni33g4e3n/Port%20of%20St.%20John%27s%20Renovation%20Project%20Proposal%20Part%201.pdf?dl=0 and https://www.dropbox.com/s/3lgdcju59gqm64b/Port%20of%20St.%20John%27s%20Renovation%20Project%20Proposal%20Part%202.pdf?dl=0. An official waiver of the tendering requirements for the St John’s Renovation and Extension Project (issued on July 17, 2015) can be accessed via https://www.dropbox.com/s/r6j9yoq45nju732/17%20July%202015%20Waiver%20of%20Tender%20for%20St.%20Johns%20Port%20Redevelopment%20Project.pdf?dl=0. A July 20, 2015 framework agreement for consultancy services between the Antigua and Barbuda Port Authority and Guangxi Bagui Project Supervision and Consultant Co. Ltd can be accessed via https://www.dropbox.com/s/cj3gio0o431re48/20%20July%202015%20Framework%20Agreement%20for%20Consultancy%20Service%20for%20Port%20of%20St.%20John%27s%20Renovation%20and%20Extension%20Project.pdf?dl=0. Official correspondence between the Prime Minister of Antigua and Barbuda and China Eximbank’s Concessional Loan Department on July 31, 2015 can be accessed via https://www.dropbox.com/s/xgmc4fqmpy9ich9/31%20July%202015%20Letter%20to%20Concessional%20Loan%20Department%20of%20China%20Eximbank.pdf?dl=0. Official correspondence between the Government of Antigua and Barbuda and China Eximbank on August 10, 2015 can be accessed via https://www.dropbox.com/s/bzw9wwk21hslnne/10%20August%202015%20Letter%20from%20Government%20of%20Antigua%20and%20Barbuda%20to%20China%20Eximbank.pdf?dl=0 3. One official source (http://www.eximbank.gov.cn/aboutExim/annals/2021_877/202306/U020230609413828602225.pdf) identifies the project completion date as September 2022. This issue warrants further investigation.

Number of official sources

33

Number of total sources

41