Narrative
Full Description
Project narrative
The Zhejiang Branch of China Eximbank signed an RMB 50 million loan agreement with Holley Group Company Limited (华立集团), and the proceeds of the loan were used to finance the construction of the first phase of the Luoyong Industrial Zone (also known as the Thai-Chinese Rayong Industrial Zone or 驻泰中罗勇工业园). The loan had disbursed as of March 31, 2009. China Eximbank issued two subsequent loans for the project’s second phase: an RMB 20 million loan and a $17.76 million loan. Thai-Chinese Rayong Industrial Park Development Co., Ltd.(泰中罗勇工业园开发有限公司) — a joint venture of China’s Holley Group Company Limited and Thailand’s Amata Group — was established in 2005 to manage the development of the Thai-Chinese Rayong Industrial Zone, which is located in the town of Si Racha within the Si Racha sub-district near the Laem Chabang deep-water port. The industrial zone occupies 12 square kilometers, including a general industrial zone, bonded zone, logistics and storage zone, and commercial living zone. The planned investment from China’s Holley Group Company Limited and Thailand’s Amata Group was $200 million. The actual level of investment during Phase 1 was $196 million. Phase 2 was completed in 2010. As of May 2014, there were 56 enterprises working from the Thai-Chinese Rayong Industrial Zone (source: 泰中罗勇工业园). As of 2019, Thai-Chinese Rayong Industrial Zone served 118 Chinese multinational companies and employed 3,000 Chinese and 32,000 Thais, with revenue of more than $3.5 billion. Chinese companies there produce motorcycles, auto parts, oil exploration pipelines, solar cells, construction of factories and dormitories, among other mechanical and electrical products. The RMB-denominated loan for Phase 1 is captured via Record ID#64410. As of 2021, Thai-Chinese Rayong Industrial Zone had reportedly driven nearly $2.3 billion of Chinese investment in Thailand, creating 40,000 local jobs. The USD-denominated loan for Phase 2 is captured via Record ID#95798. The RMB-denominated loan for Phase 2 is captured via Record ID#95799.
Staff comments
1. This project is also known as Phase 1 of Luoyong Industrial Zone Construction Project. The Chinese project title is 泰中罗勇工业园. 2. The commitment year for the Phase 1 loan is currently set to 2006 because China Eximbank claims that it provided financing for the construction of the project beginning in 2006 (see https://zjnews.zjol.com.cn/zjnews/201608/t20160815_1847069.shtml). According to China Eximbank, it has financially supported 7 of the 17 Zhejiang enterprises that are operating out of the Thai-Chinese Rayong Industrial Zone. This issue merits further investigation. 3. The Thai-Chinese Rayong Industrial Zone is a ‘mini’ industrial park in Amata City Rayong Industrial Estate. 4. The second phase of the project was implemented in 2010, so AidData assumes that the first phase was completed. However, the precise Phase 1 project implementation start and end dates are unknown.