China Eximbank provides $75.8 million preferential buyer's credit for Phase 1 of 230 kV Loop Transmission Line Project (Phnom Penh Loop Line) (Linked to Record ID#62335 and #62337, #62340)

Project narrative

On December 21, 2009, during Prime Minister Hun Sen’s three-day visit to China, China Eximbank and the Government of Cambodia's Ministry of Economy and Finance signed a $75,870,000 preferential buyer's credit (PBC) agreement for Phase 1 of the 230 kV Loop Transmission Line Project (Phnom Penh Loop Line). The PBC carried the following terms: a 20-year maturity, a 7-year grace period, and a 2% interest rate. The proceeds of the PBC were to be used by the borrower to partially finance an EPC (commercial) contract between Electricite du Cambodge (EDC) — the country’s state-owned electricity utility — and China National Heavy Machinery Corporation (CHMC). The purpose of this project was to construct a 230 kV electricity transmission loop line around Phnom Penh (measuring 160km in length), connecting to transmission lines across Cambodia (including hydroelectric dams in Kamchay, Stung Tatay, Russey Chrum Krom, Chevy Araeng and Sesan Krom II) and to lines bringing electricity from coal and gas power plants in Vietnam. The transmission line connects the G5 and G6 substations, the GS7 with GS2 substations, and the West Phnom Penh (WPP) and South Phnom Penh (SPP) substations. The project also involved the construction of a new GS7 substation in Takhmao Province, the construction of a new GS6 substation, and the expansion of two additional substations. China National Heavy Machinery Corporation (CHMC) was the EPC contractor responsible for project implementation. The project commenced on September 21, 2010. However, a formal groundbreaking ceremony was held on November 3, 2011. Then, on August 20, 2013, the 115kV SWS substation was successfully electrified. The project was completed and the Phnom Penh Loop Line was put into operation on April 28, 2016. Phase 1 of 230 kV Loop Transmission Line Project was completed in two sections: the Tonle Sap Lake Loop Line section and the Phnom Penh Loop Line section. The China Eximbank-financed Tonle Sap Lake Loop section is captured via Record ID#62335. Phase II of the 230 KV Loop Transmission Line Project was also completed in two sections (Eastern Loop Lines) and funded by China Eximbank. The PBC provided for Eastern Loop Line Part I is captured via Record ID#62337, and the GCL provided for Eastern Loop Line Part II is captured via Record ID#62340.