Chinese Government provides RMB 80 million interest-free loan — via ETCA — for 69.44 km Laos Section of the Kunming-Bangkok Highway Project (Linked to Project ID#64761, #64230)

On November 3, 2002, the Chinese Government and the Government of Laos signed an Economic and Technical Cooperation Agreement (ETCA), which committed funding for the 69.44 km Laos Section of the Kunming-Bangkok Highway Project. China’s Ministry of Commerce (MOFCOM) made three separate financial commitments in support of this project: an RMB 119 million interest-free loan (captured in Project ID#64761), an RMB 80 million interest-free loan (captured in Project ID#64231), and an RMB 50 million grant (captured in Project ID#64230). The proceeds from the grant and the interest-free loans were used to finance a construction contract between the Ministry of Communications, Transport, Post and Construction (MCTPC) of Laos and Yunnan Sunshine Road and Bridge Co., Ltd., which was signed on April 7, 2004. The total cost of the larger 247 km Kunming-Bangkok Highway Project was approximately $100 million and it was co-financed by the Government of Thailand and the Asian Development Bank. The Laos Section of the Kunming-Bangkok Highway Project involved the construction of a 69.44 km segment of Route 3 (R3) than runs from the border crossing in Mohan/Boten (Yunnan) to the town of Nateuy and then from Nateuy to the town of Luang Namtha (Luangnamtha) within Luang Namtha (Luangnamtha) Province. Yunnan Sunshine Road and Bridge Co., Ltd. was the contractor responsible for implementation. A groundbreaking ceremony was held on April 26, 2004. The project was completed on March 31, 2008.

Additional details

1. This project is also known as the Laos Section of the Route 3 (R3) Project or the PRC Section K00+000-K67+720 of the Houayxay-Boten Road Construction Project. 2. The Chinese project title is 昆曼公路老挝段项目 or 昆曼公路 or 昆曼高速公路. 3. Yunnan Sunshine Road and Bridge Co., Ltd. is also known as Yunnan Highway & Bridge Co., Ltd. 4. Since the borrowing terms of the interest-free loan are unavailable, AidData has set the maturity to 20 years by default and grace period to 10 years by default, per China's Foreign Assistance White Paper (http://www.cidca.gov.cn/2018-08/06/c_129925064_3.htm) which states that the maturity of interest-free loans is 20 years, with a drawdown period of 5 years, grace period of 5 years, and repayment over 10 years. AidData treats the drawdown period as providing 5 years of additional grace.

Number of official sources

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Number of total sources

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