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Overview

China Eximbank provides RMB 350 million government concessional loan for Oil Drilling Rigs Acquisition Project

Commitments (Constant USD, 2023)$70,927,820
Commitment Year•2008Country of Activity•Syrian Arab RepublicDirect Recipient Country of Incorporation•Syrian Arab RepublicSector•Industry, Mining, ConstructionFlow Type•Loan

Status

Project lifecycle

Implementation

Pipeline: PledgePipeline: CommitmentImplementationCompletion

Timeline

Key dates

Commitment date
Nov 12, 2008
Start (actual)
Jun 1, 2010
End (planned)
Dec 31, 2012
First repayment (originally scheduled)
Jun 11, 2013
Last repayment (originally scheduled)
Dec 9, 2020

Geospatial footprint

Map overview

Visualizes the AidData-provided feature geometry for this project.

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The purpose of the project was to purchase seven new excavators, four oil drilling rigs, and two cement pumping units for use in Deir ez-Zor Governorate. More detailed (ADM4-level) locational information can be found at https://www.openstreetmap.org/relation/184867

Stakeholders

Organizations involved in projects and activities supported by financial and in-kind transfers from Chinese government and state-owned entities

Ultimate beneficial owners

At least 25% host country ownership

Funding agencies

State-owned Policy Banks

  • Export-Import Bank of China (China Eximbank)

Receiving agencies

State-owned companies

  • Syrian Petroleum Company

Implementing agencies

State-owned companies

  • China Petroleum Technology & Development Corporation (CPTDC)
  • Syrian Petroleum Company

Guarantors

Government Agencies

  • Government of Syria

Loan desecription

China Eximbank provides RMB 350 million government concessional loan for Oil Drilling Rigs Acquisition Project

Grace period•4.5833 yearsGrant element•42.7055%Interest rate (t₀)•2%Interest type•Fixed Interest RateMaturity•12.0833 years

Narrative

Full Description

Project narrative

According to a dataset of foreign-financed projects that the Syrian Planning Commission provided to UNDP Syria in May 2011, China Eximbank and Syrian Petroleum Company (叙利亚石油公司) — a state-owned oil company in Syria — signed an RMB 350 million government concessional loan (GCL) agreement in 2008 (signed November 2008, ratified March 2009) for the Oil Drilling Rigs Acquisition Project. This loan was issued following the signature of two separate preferential loan framework agreements (one worth RMB 100 million and other worth RMB 250 million). The loan carried the following borrowing terms: a 2% interest rate, a 4.5833-year grace period, a 12.0833-year maturity, and a 0.5% management fee (RMB 1.75 million). The borrower (Syrian Petroleum Company) was to use the proceeds of the GCL to finance a $50 million commercial contract that it signed with China Petroleum Technology and Development Corporation (CPTDC) in 2007. According to written correspondence between Mr. Eng. Omar AL HAMAD (General Manager of the Syrian Petroleum Company) and the Concessional Loan Department of China Eximbank on April 1, 2010, the Government of Syria issued a sovereign guarantee in support of the loan. The purpose of the project was to purchase seven new oil drilling rigs, four oil drilling repair rigs, and two cement pumping units for use in Deir ez-Zor Governorate (Arabic: مُحافظة دير الزور‎). On June 1, 2010, China Eximbank notified the Syrian Petroleum Company that the GCL had become effective. Then, in May 2011, the Syrian Planning Commission reported that the implementation of the project was ‘ongoing’ and its expected completed date was December 31, 2012.

Staff comments

1. This project is also known as the Project of Purchasing Drilling Rigs, Purchasing Drilling Rigs Project, and the Purchasing Oil Drillers Project. The Chinese project title is 购买钻机及相关石油设备. The Arabic project title is مشروع شراء معدات نفطية حفارات or لتمويل مشروع شراء معدات وحفارات لصالح الشركة السورية للنفط. 2. It is known that the Chinese Government and Government of Syria signed an RMB 250 million preferential loan framework agreement on November 12, 2008. However, it is not known precisely when the (earlier) RMB 100 million preferential loan framework was signed. This issue merits further investigation. 3. The estimated maturity, grace period, and interest rate of the loan are drawn from the World Bank's Debtor Reporting System (DRS). See https://www.dropbox.com/s/2sw4f7gluxa52fk/DRS%20Official%20Commitments%20from%20China%20Through%202021.xlsx?dl=0 and https://www.dropbox.com/s/ab8qt4n6jijcbhd/IDS_Average%20interest%20on%20new%20external%20debt%20commitments.xlsx?dl=0 and https://www.dropbox.com/s/949n5rctiue6d7c/IDS_Average_grace_period_and_maturity_on_new_external_debt_commitments.xlsx?dl=0