China Eximbank provides $159.1 million preferential buyer's credit for Phase 1 of 230 kV Loop Transmission Line Project (Tonle Sap Lake Loop) (Linked to Project ID#62321, #62337, #62340)

On December 14, 2015, China Eximbank and the Government of Cambodia's Ministry of Economy and Finance signed a $159,155,400 preferential buyer's credit (PBC) agreement for Phase 1 of the 230 kV Loop Transmission Line (Tonle Sap Lake Loop) Project. The PBC carried 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), which was signed on March 10, 2015. The purpose of the project was to create 350km of electricity transmission lines that connect four provinces (Battambang, Siem Reap, Kampong Thom, and Kampong Cham) surrounding Tonle Sap lake with high voltage electricity. More specifically, it sought to build 230 kV power transmission lines running from Battambang to Siem Reap and along the northern edge of the Tonle Sap floodplain through Kampong Thom and Kampong Cham (350 km), linking that line at Kampong Thom with the country’s border with Laos PDR (190 km) and linking Kampong Cham with the Lower Sesan 2 hydropower dam in Stung Treng Province (125 km). PowerChina Hebei Electric Power Engineering Co., Ltd. (HBEC) was the contractor responsible for project design. China National Heavy Machinery Corporation (CHMC) was the EPC contractor responsible for project implementation. The project officially commenced on June 16, 2016. It was completed and put into operation on March 23, 2019. Phase 1 of the 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 Phnom Penh Loop Line section is captured via Project ID#62321. 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 Project ID#62337, and the GCL provided for Eastern Loop Line Part II is captured via Project ID#62340.

Additional details

1. This project is also known as the Phase 1 of the 230 KV Loop Transmission Line Project (Southwest Loop), the South-west Loop Line Electricity Transmission and Transformation Project (Phase Ⅰ), the Tonle Sap Lake Loop Project, and the 440km Battambang-Siem Reap 230kV Power Transmission and Transformation Line Project. The Chinese project title is 洞里萨湖环网 or 马德望─暹粒─磅通─磅湛省的230千伏高压输变电网 or 柬埔寨国家电网230kV西南环网（一期). 2. In the Overseas Development Finance Dataset that Boston University’s Global Development Policy Center published in December 2020, it identifies the face value of the loan that supported this project as $90 million. AidData relies on the face value of the loan ($159,155,400) that is recorded in 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).

Number of official sources

14

Number of total sources

17