Overview

CDB provide $60 million loan for equipment to support national health units (Linked to Record ID#58827)

Commitment Year•2015Country of Activity•EcuadorDirect Recipient Country of Incorporation•EcuadorSector•HealthFlow Type•Loan

Status

Project lifecycle

Completion

Pipeline: PledgePipeline: CommitmentImplementationCompletion

Timeline

Key dates

Commitment date: Jan 1, 2015

First repayment (originally scheduled): Dec 31, 2016

Last repayment (originally scheduled): Dec 30, 2022

Stakeholders

Organizations involved in projects and activities supported by financial and in-kind transfers from Chinese government and state-owned entities

Ultimate beneficial owners

At least 25% host country ownership

Funding agencies

State-owned Policy Banks

China Development Bank (CDB)

Receiving agencies

Government Agencies

Government of Ecuador

Implementing agencies

Government Agencies

Government of Ecuador

Collateral providers

State-owned companies

EP Petroecuador

Loan description

CDB provide $60 million loan for equipment to support national health units

Grace period•2 yearsGrant element•9.7192%Interest rate (t₀)•7.1917%Interest type•Fixed Interest RateMaturity•8 years

Collateral

The CDB loan was secured with an Oil Sales and Purchase Contract between PetroEcuador and PetroChina and an Oil Sales and Purchase Contract between PetroEcuador and UNIPEC Asia Co. Ltd. The Oil Sales and Purchase Contracts required that PetroEcuador to sell crude oil and/or fuel oil to PetroChina and UNIPEC Asia Co. Ltd. The proceeds from the sale of oil were to be paid by PetroChina and UNIPEC Asia Co. Ltd. into a Proceeds Account, which was opened by PetroEcuador with CDB in China. Petroecuador was also required to maintain a minimum cash balance in the Proceeds Account, equivalent to 130% of the repayment (principal and interest) amount due to be paid in that 3-month interest period.

Narrative

Full Description

Project narrative

In 2015, the Chinese government extended a credit line worth $60,350,575.04 for several Health Units in Ecuador. This is part of a larger national program called the Physical Infrastructure Equipment Maintenance Studies and Health Inspection (Infraestructura Fisica Equipamiento Mantenimiento Estudios y Fiscalizacion en Salud). The credit line is part of Tranche B of a December 2012 loan by China Development Bank to the Government of Ecuador (Record ID#58827). The loan terms of Tranche B were applied to this project as well: 8 year maturity, 2 year grace period, and 7.1917% interest. The purpose of this project is to build 96 health units of Second, Third, or Fourth level ranking and equip 310 additional care centers. Additionally, the project calls for the acquisition of 80 ambulances and 8 other vehicles by 2017. Finally, it also includes plans to hire at least 35 professionals per year for the coordination and execution of the project through the year 2017.

Staff comments

1. This project is funded through Tranche B of the $2 billion CDB loan (Record ID#58827). To ensure we are not double-counting Chinese OF, the transaction amount field is left empty. The amount is captured in Record ID#58827.