China Eximbank provides RMB 688.3 million government concessional loan for Phoenix Park Industrial Estate Project

Project narrative

On June 18, 2018, Mr. Steve De Las, President, Evolving Tecknologies and Enterprise Development Company Limited (eTecK) signed a Memorandum of Understanding with Mr. Zhang Chuancheng, Deputy General Manager, Beijing Construction Engineering Group (BCEG) for the development of e TecK’s new Economic Zone, the Phoenix Park Industrial Estate. On October 31, 2018, Trade and Industry Minister Paula Gopee-Scoon and a delegation from Trindad and Tobago met in Beijing, China with Chinese foreign investors targeted for the new Phoenix Park Industrial Estate (PPIE). Then, in November 2019, the Chinese Government and the Government of Trinidad and Tobago signed a preferential loan framework agreement for the Phoenix Park Industrial Estate Project. On December 16, 2019, China Eximbank and the Government of Trinidad and Tobago signed an RMB 688,347,000 ($104,295,000) government concessional loan (GCL) agreement for the Phoenix Park Industrial Estate Project. The GCL carries the following borrowing terms: a maturity of 20 years, 3 months, 5 days; an interest rate of 2%; and a grace period of 5.26 years. It is scheduled for repayment in 30 equal and semi-annual installments commencing on June 16, 2024 and ending on December 16, 2039. The lender disbursed approximately RMB 217,636,650 ($31.5 million) in 2019, an unknown amount in in 2020, RMB 174,200,000 in 2021, and RMB 234,000,000 in 2022. The loan’s (principal) amount outstanding was approximately RMB 217,636,650 as of 2019, RMB 391,836,650 as of 2021, and RMB 625,836,650 as of 2022. The purpose of the project is to construct a new modern industrial park in Phoenix Park, Couva. Upon completion, it is expected that the industrial park will provide space for 60 to 80 factory shells on 133 acres and directly employ 4,000-5,000 people. Around 10 Chinese firms are expected to be brought into the park in a variety of areas such as light manufacturing, logistics, and other industries such as glass powder, paper, wood processing, and housing. It will serve as an innovative platform for China-TT investment co-operation and bring more business opportunities. when fully operational the Phoenix Park Industrial Estate is expected to cover an area of approximately 540,000 square meters. Beijing Construction Company and Evolving Technologies and Enterprise Development Company Limited (eTeck) are the contractors responsible for project implementation. A formal sod-turning ceremony took place in May 2018. Then, in 2020, Trinidad and Tobago’s central bank reported that ‘construction activity surged as work resumed on several infrastructural projects such as the San Fernando to Point Fortin Highway, the Toco to Valencia roadway, the Secondary Sangre Grande Hospital and the Phoenix Park Industrial Estate.’ The project was originally expected to commence in mid-February 2019 and reach completion within 12 months (mid-February 2022). However, as of May 2022, the project was not yet complete. Its fencing and boundary wall component had achieved a 72% completion rate; its storm water drainage component had achieved a 45% completion rate; its construction of five factory shells component had achieved a 56% completion rate; its concrete bridge/reinforce concrete bridge component had achieved a 95% completion rat; its waste water treatment plant component had achieved a 60% completion rate; its potable water line component had achieved a 73% completion rate; its sewer pipeline installation component had achieved a 97% completion rate; its river works component had achieved a 100% completion rate; its natural gas works component had achieved a 100% completion rate; and its flood mitigation component had achieve a 100% completion rate. The Phoenix Park Industrial Estate was officially opened and put into operation on January 10, 2024. Its occupancy rate reportedly exceeded 75% in 2024.