China Eximbank provides RMB 192 million government concessional loan for Container Inspection Equipment Project

Project narrative

On December 9, 2004, China Eximbank and the Government of Yemen signed an RMB 192,000,000 ($23,022,600) government concessional loan (GCL) agreement for the Container Inspection Equipment Project. Then, on July 4, 2005, Yemen’s Parliament signed the GCL agreement into law (Law No. 34 of 2005). The borrowing terms of the GCL are unknown. The proceeds of the loan were to be used by the borrower to finance a commercial contract with Nuctech Company Limited. The project involved the acquisition and installation of eight customs scanners. Six of these scanners were allocated for use at the Aden Free Zone and the ports of Aden, Mukalla, Hodeidah (Hodeida), and Haradh. The two additional (mobile) scanners were set aside for discretionary use at border ports. Nuctech Company Limited was the contractor responsible for implementation. Project implementation began on April 15, 2006. However, a formal commencement ceremony did not take place until May 31, 2007. Equipment installation was completed in September 2007 and a formal project handover ceremony took place on June 22, 2008. Nuctech Company Limited agreed to provide technical support beyond the completion date of the project.