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 Record ID#62321, #62337, #62340)

Project narrative

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 Record 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 Record ID#62337, and the GCL provided for Eastern Loop Line Part II is captured via Record ID#62340.