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Overview

[Cancelled] China Eximbank commits 300 million RMB government concessional loan for Hambantota Port Development Phase II Project (link to Record ID#39024)

Commitments (Constant USD, 2023)$51,539,780
Commitment Year•2012Country of Activity•Sri LankaDirect Recipient Country of Incorporation•Sri LankaSector•Transport And StorageFlow Type•Loan

Status

Project lifecycle

Cancelled

Pipeline: PledgePipeline: CommitmentImplementationCompletion

Timeline

Key dates

Commitment date
Jan 1, 2012
First repayment
Dec 30, 2017
Last repayment
Dec 27, 2030

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

Government Agencies

  • Government of Sri Lanka

State-owned companies

  • Sri Lanka Ports Authority (SPLA)

Implementing agencies

State-owned companies

  • China Communications Construction Co., Ltd. (CCCC)
  • China Harbour Engineering Co., Ltd. (CHEC)

Loan desecription

[Cancelled] China Eximbank commits 300 million RMB government concessional loan for Hambantota Port Development Phase II Project (link to Record ID#39024)

Grace period•6 yearsGrant element•53.6573%Interest rate (t₀)•2%Interest type•Fixed Interest RateMaturity•19 years

Narrative

Full Description

Project narrative

Based on Sri Lanka's Department of External Resources (ERD) 2012 Performance Report, EXIM Bank of China, on 17 September 2012, has signed an agreement to provide a total loan of $809.35 million to the government of Sri Lanka for phase II of the port construction in Hambantota (umbrella Record ID#33481). The $809.35 million loan was provided in 3 segments, one of the segment is Government Concessional Loan (GCL)- CNY 1 billion, with 2% interest rate, 0.5% management fee, 0.5% commitment fee and a repayment period of 19 years including 6 years of grace period (captured in this project). According to the Sri Lanka Department of External Resources, 300 million CNY of the 1 billion CNY transaction has been cancelled. This project captures the 300 million CNY that was cancelled, and linked Record ID#39024 captures the 700 million CNY that was used to finance the project. For the other two segments of the $809.35 million loan see projects ID #39023 and #39025. Based on ERD Disbursements of Foreign Funded Loan/Grant 2014, EXIM Bank had disbursed a loan amount of US$299,817,176.39 in the period of May to December 2014. China Communications Construction Company has been assigned as the contractor for the second phase of Hambantota port. ERD also reported that China Harbour Engineering Com. Ltd. would also be involved in the project. The project was commenced in 2012, and will include the construction of a quay wall (2140 m long) to accommodate 6 container berths, oil terminal (300 meters long), yard & roads, a flyover bridge, deepening of entrance channel (450 m wide, 840 m long, 18 meter deep), 2 feeder berths, construction of an artificial island (50 Ha) & handling facilities, and excavating a new basin area. An extension has been granted to the project up through May 2018, despite the original completion date being planned for November 2015. As of December 31st, 2017, the project was at 96% physical completion. The new port complex required the acquisition of 1,500Ha of land. The project envisaged a large industrial area and a shipyard facility. The port in Hambantota, deeper than the one at Colombo, is to be used as a refueling and docking station for the Sri Lankan Navy.