China Eximbank provides government concessional loan for MA60 Aircraft Acquisition Project (Linked to Project ID#33807)

In 2006, China Eximbank and the Government of Laos signed a government concessional loan (GCL) agreement for the MA60 Aircraft Acquisition Project . The borrowing terms of the loan are unknown. However, it is known that the borrower used to loan proceeds to finance a commercial contract between Lao Airlines and Xi'an Aircraft Industrial Corporation (XAC), which was signed in December 2005. The purpose of the project was to purchase two MA60 aircraft. The two aircraft purchased by Lao Airlines arrived at Vientiane Wattay International Airport on August 4, 2006 and September 28, 2006. On April 28, 2007, Lao Airlines held a nine-month celebration of the safe operation of the aircraft at the Vientiane Wattay International Airport. Lao Airlines President Song Fan attended the celebration. The Chinese Government provided a grant for the acquisition of two additional MA60 aircraft in 2013 (see Project ID#33807).

Additional details

The Chinese project title is 老挝新舟60飞机. According to China’s Ministry of Commerce, a foreign aid loan (also known as a government concessional loan) was issued in support of this project in 2006. Each MA60 costs approximately $11 million. Therefore, in the absence of the actual face value of the loan, AidData imputes a face value of $22 million. This issue merits further investigation.

Number of official sources

2

Number of total sources

8