Chinese Government provides $60.9 million interest-free loan for Kratie-Trapeang Kriel Section of National Road No.7 (NR 7) Rehabilitation Project (Linked to Project ID#61166, #32077, #38851)

On November 2, 2002, the Chinese Government and the Government of Cambodia signed letters of exchange regarding a $60,980,000 loan for the Kratie-Trapeang Kriel Section of National Road No.7 (NR 7) Rehabilitation Project. The loan carried the following borrowing terms: a 20-year maturity, a 10-year grace period, and 0% interest rate. The loan proceeds were drawn in part from an economic and technical cooperation agreement (ETCA) that the parties signed on November 27, 2003 (as captured via Project ID#32077). Also, on November 2, 2002, the Chinese Government and the Government of Cambodia signed a $2,430,000 grant agreement for the Kratie-Trapeang Kriel Section of National Road No.7 (NR 7) Rehabilitation Project (as captured via Project ID#61166). The purpose of the project was to rehabilitate a 196.8 km segment of National Road No.7 (NR 7) between Kratie and Trapeang Kriel. This road segment was considered to be the last section of the Sihanoukville–Phnom Penh–Stung Treng–Pakse–Savannakhet Subcorridor (SEC-4) in Cambodia. Shanghai Construction Group (SCG) was the contractor responsible for implementation. A formal groundbreaking ceremony was held on November 18, 2004 and the road inauguration ceremony was held on April 29, 2008.

Additional details

1. This project is also known as the Rehabilitation Project of the National Road No. 7 (NR 7) from Kratie to Trapeang Kriel (including Cambodia-China Friendship Bridge in Sekong). The Chinese project title is 援柬埔寨7号国道项目 or 援柬埔寨7号公路 or 桔井至德罗宾克瑞尔7号国道. 2. The Government of Cambodia’s aid and debt information management system, which is maintained on behalf of all ministries and agencies of the Royal Government of Cambodia by the Cambodian Rehabilitation and Development Board (CRDB) of the Council for the Development of Cambodia (CDC), identifies the interest rate of the loan that supported this project as 2%. However, this appears to be a typographical error. 3. The loan proceeds were drawn from an ETCA, which committed an interest-free loan (see Project ID#32077). 4. In 2004, the Chinese Government and the Government of Cambodia signed a $2,558,125 interest-free loan agreement for the 1st Cambodia-China Friendship (Sekong) Bridge Construction Project, which is closely related to the Kratie-Trapeang Kriel Section of National Road No.7 (NR 7) Rehabilitation Project (as captured via Project ID#38851).

Number of official sources

9

Number of total sources

11