Chinese Government provides RMB 60.3 million grant — via ETCA — for Y12 Aircraft Project (Linked to Project ID#73901, #73902)

On April 4, 2013, Harbin Hafei Industry Co., Ltd signed a purchasing contract with AVIC International Holding Corporation (AVIC INTL) to purchase a Y12E aircraft. The aircraft is going to be used in Micronesia under the purpose of transportation, rescue, medical and other operational services. On April 28 and June 2, 2014, the Chinese government and the Government of Micronesia exchanged Diplomatic Notes regarding this agreement. On November 25, 2014, a resolution was introduced in the 18th Congress of FSM's 5th special session to approve the allocation of 60.3 million RMB of Chinese government grant funds in order to implement of the Foreign-aid Supply Contract for the Y12 Aircraft Program. China agreed: (1) to provide FSM with one Y12 aircraft and its spare parts, and (2) to be to be responsible for the construction of the Y12 aircraft and its shipment to a designated port in the FSM, and (3) to provide training to FSM personnel and the relevant technical services. This project derived 60.3 million RMB from three economic and technical cooperation agreements (ETCA) for this project: (1) July 9, 2009 ETCA (#73901) worth 20 million RMB (2) February 23, 2011 ETCA (#73902) worth 10 million RMB, and (3) November 7, 2013 ETCA worth 60 million RMB. The 2013 ETCA was used to fund the construction of a Y12 aircraft, the training of FSM’s personnel and related technical services, the delivery of the aircraft and spare parts for the Y12 aircraft.. The FSM Congress approved of this 60.3 million RMB grant allocation on November 2, 2016. On December 8, 2017, the Y12E arrived at Micronesia. On December 12, the handover certificate was signed. A handover ceremony took place on January 5, 2018. On January 6th, the Y-12 was sent to the outer island Woleai to transfer a young patient to the main island for medical treatment. The grant is also captured by the database published by Lowy Institute.

Number of official sources

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7