Chinese Government provides RMB 100 million low-interest loan for Hand Tractor Factory Transformation Project in Myanmar

In 2000, the Chinese government provided an RMB 100 million low-interest loan to the Government of Myanmar for the Hand Tractor Factory Transformation Project. The proceeds of the loan were to be used by the borrower to finance a commercial contract signed by Myanmar’s Ministry of Industry No.2 and China National Complete Plant and Export Corp. Ltd. (COMPLANT) on December 17, 1999. According to the terms of the contract, Myanmar’s Ministry of Industry No.2 agreed to buy materials from COMPLANT for the construction of a hand tractor (power tiller) factory — including a machine shop, forging shop, heat treatment shop, and assembly shop — in the Indagaw (Inn Ta Kaw or အင်းတကော်) Industrial Zone within Bago Township. This project commenced in August 2000 and the factory was officially opened on December 30, 2003. A project handover certificate was issued in August 2004.

Additional details

1. This project is also known as the Power Tiller and Power Reaper Production Project and the Ministry of Industry No. 2 Factory Transformation Project. The Chinese project title is 缅甸1亿元人民币优惠贷款项目 or 缅甸第二工业部提供成套机械设备和技术项目. 2. The loan that supported this project is not included in the Overseas Development Finance Dataset that Boston University’s Global Development Policy Center published in December 2020. 3. One academic source by the Asia Research Institute suggests that the project (commercial contract) was financed with two separate loan agreements, signed on June 7, 1999 and July 16, 2000.

Number of official sources

4

Number of total sources

9