China Eximbank provides concessional loan for Thanlyin Glass Bottle Factory Reconstruction Project (Linked to Record ID#98029, 96221)

Project narrative

China Eximbank and the Government of Myanmar signed a concessional loan agreement for a Thanlyin Glass Bottle Factory Reconstruction Project. The face value, commitment date, and borrowing terms of the loan are unknown. The purpose of this project was to renovate two furnaces (Furnace No. 1 and Furnace No. 3) at a glass bottle factory — with the capacity to produce 126,990 glass bottles per day — in the Thilawa Industrial Zone (သီလဝါစက်မှုဇုန်) within Thanlyin Township. China CAMC Engineering Co. Ltd was the contractor responsible for implementation of the project. China Eximbank conducted an on-site, post-loan project inspection from March 30, 2013 to April 2, 2013. There are some indications that the China Eximbank loan for the Thanlyin Glass Bottle Factory Reconstruction 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).