China Eximbank provides RMB 207 million government concessional loan for National Academies for the Performing Arts Construction Project (Linked to Project ID#40005)

On May 20, 2011, China Eximbank signed a government concessional loan (GCL) with the Government of the Republic of Trinidad and Tobago worth RMB 207 million for the Additional Works National Academies for the Performing Arts (NAPA) Project. The loan (GCL) carried the following borrowing terms: a 2% interest rate, a 20 year maturity, and a 5.84 year grace period. It was scheduled for repayment in 31 equal and semi-annual installments between March 21, 2016 and September 21, 2031. The lender made cumulative disbursements worth RMB 207 million between May 20, 2011 and September 30, 2014. The borrower made repayments worth approximately RMB 13,354,838.70 between September 30, 2016 and September 30, 2017, RMB 13,397,882.34 between September 30, 2017 and September 30, 2018, RMB 13,354,838.70 between September 30, 2018 and September 30, 2019, RMB 13,354,838.70 between September 30, 2019 and September 30, 2020, and RMB 13,354,838.70 between September 30, 2020 and September 30, 2021. Cumulative principal repayments amounted to RMB 13,354,838.70 as of September 30, 2017, RMB 26,752,721.04 as of September 30, 2018, RMB 40,107,559.74 as of September 30, 2019, RMB 53,462,398.44 as of September 30, 2020, and RMB 66,817,237.14 as of September 30, 2021. The loan’s (principal) amount outstanding was RMB 207,000,000 as of September 30, 2014, RMB 207,000,000 as of September 30, 2015, RMB 207,000,000 as of September 30, 2016, RMB 193,645,161.30 as of September 30, 2017, RMB 180,247,278.96 as of September 30, 2018, RMB 166,935,483.90 as of September 30, 2019, RMB 153,580,645.20 as of September 30, 2020, RMB 140,225,806.50 as of September 30, 2021. The purpose of the project was to construct additional works at the National Academy for the Performing Arts (NAPA) in Port of Spain (also known as the ‘north campus’), and the Southern Academy for the Performing Arts (SAPA) in San Fernando (also known as the ‘south campus’). Shanghai Construction Group (SCG) was the general EPC contractor (or ‘prime contractor’) responsible for project implementation. However, almost 30 sub-contractors from Trinidad and Tobago contributed nearly TT$100 million worth of goods and services during the completion of the project. The project was supervised by the Urban Development Corporation of Trinidad and Tobago (UDeCOTT) -- a state owned company of Trinidad and Tobago. The main additional works of the north campus involved external work, grading and demolishing works; furniture and additional generator; appliances; draperies; sheeting, equipment; T&TEC substation; additional roofing works, performing lighting system; performing sound systems; multi-play equipment; musical fountain and landscaping. The main additional works of the south campus entail external works; furniture; additional generator; appliances; performance lighting; performance sound system; draperies; claims for delayed suspension and remobilization by relocation of sewer lines; design and construction of retaining wall, demolition works and landscaping. The main additional works of the south campus entail external works; furniture; additional generator; appliances; performance lighting; performance sound system; draperies; claims for delayed suspension and remobilization by relocation of sewer lines; design and construction of retaining wall, demolition works and landscaping. The originally expected construction period for the additional works at the north campus was April 2007 to November 2009, and the originally expected construction period for the south campus was April 2011 to October 2011. NAPA was ultimately handed over to the Trinidadian Government on November 9, 2009, while SAPA was handed over on September 28, 2012. However, this project became a major source of local controversy. On August 28, 2014, NAPA was deemed unsafe by the Occupational Safety and Health Administration (OSHA). It was subsequently closed for over two years, requiring $20 million dollars in renovations before reopening in January 2017. The issues cited were: badly secured lighting fixtures, shattered glass panes, issues with air quality, unsafe catwalks, unsafe stage areas, unsafe roofs, unsafe ceilings, loose bolts, and poor welding. Shanghai Construction Group did not cover the full cost of the renovations, citing that their maintenance contract only extended for a year after the building's construction. Michael Zhang, director of SCG Caribbean, stated that it was a misunderstanding and that sub-standard materials had been used, and that the company had done the best job it could. During the closure, Prime Minister Patrick Manning defended the structure as a ‘masterpiece.’ UDeCOTT chairman Calder Hart who supervised the initial construction of the project was accused of awarding TT$668 million worth of contracts to a Malaysian company that was linked to his wife Sherrine Hart. The building is an ongoing expense for the Trinidadian government, which in 2014 paid TT$2,000,000 to support the structure and its performances. The maintenance cost was estimated at ten per cent of building cost per year, or TT$50 Million. It was part of Trinidad and Tobago's ‘Vision 2020’ initiative, which aimed to expand the cultural footprint of Trinidad and Tobago and substantially develop its urban areas. NAPA contains a 53 room hotel and restaurant wing, which the Trinidadian parliament reported was not within the original design specifications. UDeCOTT has denied all allegations that the wing was constructed without approval. The wing was reported to be underutilized until 2018, when Cara hotels finally agreed to rent the structure, with no payment of its TT$390,000 lease expected until 2021. NAPA was reportedly styled after the Chaconia, Trinidad and Tobago's national flower, and SAPA a ‘G-Clef’. NAPA has come under significant flak from the arts community, which cited a multitude of defective facilities. These included: no backstage loading door making many performances, including those of Trinidad's iconic Steel Drum, exceedingly difficult; accusations that the government outright lied about two smaller theaters on the premises, and that these are nothing but bare rooms; analogue lighting and sound equipment; concrete dance floors; no dressing rooms accessible from backstage; and no administrative offices (which required that the National Museum offices be temporarily evicted to make way for these), among numerous other complaints. The building was reportedly constructed with input from neither the arts community nor the university to which it was donated. The same loans used to finance this project were also supposed to be used to construct a National Carnival Entertainment Centre directly behind NAPA. That project, however, remained unrealized as of June 2020.

Additional details

1. The China-Latin America Finance Database, which is co-produced by the Inter-American Dialogue and Boston University’s Global Development Policy Center, does not capture either of the China Eximbank loans that supported this project. 2. AidData obtained the commitment dates, face values, and the borrowing terms of both China Eximbank loans from internal records [extracted from the Commonwealth Secretariat Debt Recording and Management System (CS-DRMS) and date stamped on March 23, 2020] that the Government of Trinidad and Tobago shared with AidData in March 2020. 3. The CS-DRMS loan number is 2011008. 4. One official source refers to the loan’s final maturity date as March 21, 2032 rather than September 21, 2031. This issue warrants further investigation.

Number of official sources

28

Number of total sources

40