China Eximbank provides $176.4 million preferential buyer's credit for Phase 2 of the 230 KV Loop Transmission Line Project (Eastern Loop Line Part I) (Linked to Record ID#62340, #62335, #62321)

Project narrative

On January 11, 2018, China Eximbank and the Government of Cambodia signed a $176,490,468 preferential buyer's credit (PBC) agreement for Phase 2 of the 230 KV Loop Transmission Line Project (Eastern Loop Line Part I). 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 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 October 13, 2016. According to the Government of Cambodia’s ODA Database, China Eximbank made three loan disbursements between 2019 and 2021: a $61,771,664 loan disbursement in 2019, a $52,947,140 loan disbursement in 2020, and a $61,771,664 loan disbursement in 2021. Phase 2 of the 230 kV Loop Transmission Line Project was implemented in two parts and was financed with two separate China Eximbank loans. Part I is captured via Record ID#62337, and Part II is captured via Record ID#62340. Phase 2 of the 230 kV Loop Transmission Line Project involved the construction of two new 50MW substations and the construction of a 230kV transmission line across four provinces in northeastern Cambodia (Stung Treng, Rattanakkiri, Kratie, and Mondulkiri) with a total length of about 275 kilometers. CHMC was the EPC contractor responsible for implementation. The project officially commenced on March 3, 2018, and construction was originally expected to last 36 months (estimated completion date: March 3, 2021). The transmission line was put into operation and officially commissioned on July 2, 2020. The project was ultimately completed on or around February 3, 2021.