China Eximbank provides $43 million preferential buyer’s credit for Phase 2 of Sreng Water Basin Development Project (Linked to Record ID#35568)

Project narrative

On June 9, 2014, China Eximbank and the Government of Cambodia signed a $43,035,551 preferential buyer’s credit (PBC) agreement for Phase 2 of the Sreng River Basin Water Resources Development Project. The borrowing terms of the PBC were as follows: 20-year maturity, 7-year grace period, and 2% interest rate. The proceeds of the PBC were used to partially finance an EPC contract with Sinohydro Bureau 8 Co., Ltd., which was signed on December 5, 2013. The purpose of this project was to increase the supply of irrigated water to Oddar Meanchey, Siem Reap, and Banteay Meanchey provinces in northwest Cambodia. Upon completion, it was expected that the project would be able to cover 31,600 hectares of farmland in the rainy season and 25,500 hectares of farmland in the dry season. Northwest Engineering Corporation Ltd. was the contractor responsible for project design. Sinohydro Bureau 8 Co., Ltd. was the contractor responsible for project implementation. The project commenced on October 15, 2014, and it was successfully completed and handed over to the Cambodian Government on March 30, 2017.