Narrative
Full Description
Project narrative
In February 2008, China Eximbank and Myanmar Foreign Trade Bank (MFTB) signed an RMB 50 million government concessional loan (GCL) agreement for the Electric Water Pump Acquisition Project. The agreement was signed during the working visit of Li Jun, Vice President of the Export-Import Bank of China, to Myanmar from February 24 to 28, 2008. The borrowing terms of the GCL are unknown. The purpose of the project was to facilitate the acquisition of 192 sets of electric water pumps for use in power plants in the city of Yangon. The implementation status of this project is unknown. There are some indications that the China Eximbank loan for the Electric Water Pump Acquisition Project may have financially underperformed vis-a-vis the original expectations of the lender. In 2020, China Eximbank and the Government of Myanmar signed a debt suspension agreement as part of the G-20 Debt Service Suspension Initiative (DSSI). Under the terms of the agreement, the lender agreed to suspend principal and interest payments due between May 1, 2020 and December 31, 2020 under 3 buyer’s credit loan (BCL) agreements, 6 government concessional loan (GCL) agreements, and 27 preferential buyer’s credit (PBC) agreements (as captured via Record ID#98029). Debt service payments under many of these loan agreements were again deferred in 2021 (as captured via Record ID#96221).
Staff comments
1. This project is also known as the Purchasing Supplies for Yangon Power Plants Project. The Chinese project title is 192套电动水泵. The Burmese project title is ရန္ကုန္ၿမိဳ့ ဓာတ္အားခြဲ႐ုံမ်ား၏ ပစၥည္း၀ယ္ယူေရး. 2. According to the World Bank's Debtor Reporting System (DRS), the weighted average maturity of all official sector lending from Chinese creditors to government and government-guaranteed borrowing institutions in Myanmar was 18.1576 years in 2008. AidData estimates the maturity of the China Eximbank loan that supported the Electric Water Pump Acquisition Project by using this figure. See https://www.dropbox.com/s/949n5rctiue6d7c/IDS_Average_grace_period_and_maturity_on_new_external_debt_commitments.xlsx?dl=0 3. According to the World Bank's Debtor Reporting System (DRS), the weighted average grace period of all official sector lending from Chinese creditors to government and government-guaranteed borrowing institutions in Myanmar was 5.6246 years in 2008. AidData estimates the grace period of the China Eximbank loan that supported the Electric Water Pump Acquisition Project by using this figure. See https://www.dropbox.com/s/949n5rctiue6d7c/IDS_Average_grace_period_and_maturity_on_new_external_debt_commitments.xlsx?dl=0 4. According to the World Bank's Debtor Reporting System (DRS), the weighted average interest rate of all official sector lending from Chinese creditors to government and government-guaranteed borrowing institutions in Myanmar was 3.9534% in 2008. AidData estimates the interest rate of the China Eximbank loan that supported the Electric Water Pump Acquisition Project by using this figure. See https://www.dropbox.com/s/ab8qt4n6jijcbhd/IDS_Average%20interest%20on%20new%20external%20debt%20commitments.xlsx?dl=0