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Overview

China Eximbank provides RMB 710 million government concessional loan for Port Moresby City Roads Project

Commitments (Constant USD, 2023)$118,176,069
Commitment Year•2014Country of Activity•Papua New GuineaDirect Recipient Country of Incorporation•Papua New GuineaSector•Transport And StorageFlow Type•Loan

Status

Project lifecycle

Completion

Pipeline: PledgePipeline: CommitmentImplementationCompletion

Timeline

Key dates

Commitment date
Mar 21, 2014
Start (actual)
May 7, 2014
End (planned)
Jul 1, 2016
End (actual)
Jun 22, 2017
First repayment (originally scheduled)
Jun 17, 2024
Last repayment (originally scheduled)
Dec 13, 2038

Geospatial footprint

Map overview

Visualizes the AidData-provided feature geometry for this project.

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The purpose of the project was to (a) reconstruct an 13 km road (Baruni Road) from Konedobu to Baruni and Gerehu (Lot 1) and (b) reconstruct an 8.7 km road from Gerehu to the 9-Mile Arterial Road (Lot 2). More detailed locational information can be found at https://www.openstreetmap.org/directions?engine=fossgis_osrm_car&route=-9.4384%2C147.1378%3B-9.3870%2C147.1681#map=14/-9.4123/147.1511 and https://www.openstreetmap.org/directions?engine=fossgis_osrm_car&route=-9.4094%2C147.2251%3B-9.3974%2C147.1591#map=14/-9.4007/147.1922

Stakeholders

Organizations involved in projects and activities supported by financial and in-kind transfers from Chinese government and state-owned entities

Ultimate beneficial owners

At least 25% host country ownership

Funding agencies

State-owned Policy Banks

  • Export-Import Bank of China (China Eximbank)

Receiving agencies

Government Agencies

  • Government of Papua New Guinea

Implementing agencies

State-owned companies

  • China Harbour Engineering Co., Ltd. (CHEC)

Loan desecription

China Eximbank provides RMB 710 million government concessional loan for Port Moresby City Roads Project

Grace period•10.25 yearsGrant element•63.2041%Interest rate (t₀)•2%Interest type•Fixed Interest RateMaturity•24.75 years

Narrative

Full Description

Project narrative

On March 21, 2014, the Export-Import Bank of China and the Government of Papua New Guinea signed an RMB 710 million ($110 million) government concessional loan (GCL) agreement for the Port Moresby City Roads Project (Lot 1 and Lot 2). The GCL reportedly carried the following borrowing terms: a 24.75-year maturity, a 10.25-year grace period, and a 2% interest rate. The proceeds of the GCL were to be used by the borrower to finance a commercial contract that the Government of Papua New Guinea signed with China Harbour Engineering Co., Ltd. on June 14, 2013. The purpose of the project was to (a) reconstruct an 13 km road (Baruni Road) from Konedobu to Baruni and Gerehu (Lot 1) and (b) reconstruct an 8.7 km road from Gerehu to the 9-Mile Arterial Road (Lot 2). CHEC was the contractor responsible for implementation. A project commencement ceremony took place on May 7, 2014, and Papua New Guinea's Minister of Transport conducted an on-site project inspection on November 30, 2015. The project was originally scheduled for completion in July 2016. However, it was ultimately completed on June 22, 2017. 205 Chinese workers and 460 PNG workers were involved in the implementation of this project.

Staff comments

1. This project is also known as Lots 1 and 2 of the Port Moresby City Roads Project, Sections 1 and 2 of the Port Moresby City Roads Project, the National Capital City Roads Project, the NCDC Road Improvement Project, the POM City Roads Project, the National Capital District's Road Rehabilitation Project or Construction and Upgrading of National Roads Project. The Chinese project title is NCDC道路改造项目. 2. In the Overseas Development Finance Dataset that Boston University’s Global Development Policy Center published in December 2020, it identifies the loan commitment (signature) year as 2018. AidData has coded the loan commitment year as 2014 based on the precise loan signature date (March 21, 2014). The World Bank's Debtor Reporting System (DRS) appears to identify the loan commitment year as 2015. 3. The loan's estimated borrowing terms are drawn from the World Bank's Debtor Reporting System. See https://www.dropbox.com/s/2sw4f7gluxa52fk/DRS%20Official%20Commitments%20from%20China%20Through%202021.xlsx?dl=0 and https://www.dropbox.com/s/ab8qt4n6jijcbhd/IDS_Average%20interest%20on%20new%20external%20debt%20commitments.xlsx?dl=0 and https://www.dropbox.com/s/949n5rctiue6d7c/IDS_Average_grace_period_and_maturity_on_new_external_debt_commitments.xlsx?dl=0