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Overview

CDB provides $24 million loan to ZTE Energy for Palm Garden Project

Commitments (Constant USD, 2023)$25,539,033
Commitment Year•2017Country of Activity•IndonesiaDirect Recipient Country of Incorporation•China (People's Republic of)Sector•Agriculture, Forestry, FishingFlow Type•Loan

Status

Project lifecycle

Pipeline: Commitment

Pipeline: PledgePipeline: CommitmentImplementationCompletion

Timeline

Key dates

Commitment date
Jan 1, 2017

Geospatial footprint

Map overview

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In 2017, China Development Bank and ZTE Energy — a Chinese state-owned enterprise — signed a $24 million loan agreement for the Palm Garden Project. The borrowing terms of the loan are unknown. However, it is known that the borrower purchased credit insurance. The implementation status of this project, which reportedly supported one or more palm oil plantations on about 120,000 acres in Central Kalimantan Province, is unknown. This project supported one or more palm oil plantations on about 120,000 acres in Central Kalimantan Province. For more detailed location information: https://www.openstreetmap.org/relation/2388613

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% Chinese ownership

Funding agencies

State-owned Policy Banks

  • China Development Bank (CDB)

Receiving agencies

State-owned companies

  • ZTE Energy Co., Ltd.

Implementing agencies

Government Agencies

  • Government of Indonesia

State-owned companies

  • ZTE Energy Co., Ltd.

Insurance providers

State-owned companies

  • China Export & Credit Insurance Corporation (Sinosure)

Loan desecription

CDB provides $24 million loan to ZTE Energy for Palm Garden Project

Interest type•Unknown

Narrative

Full Description

Project narrative

In 2017, China Development Bank and ZTE Energy — a Chinese state-owned enterprise — signed a $24 million loan agreement for the Palm Garden Project. The borrowing terms of the loan are unknown. However, it is known that the borrower purchased credit insurance from Sinosure. The implementation status of this project, which reportedly supported one or more palm oil plantations on about 120,000 acres in Central Kalimantan Province, is unknown.

Staff comments

1. This project is also known as the ZTE Energy Indonesia Palm Garden Project and the Palm Oil Plantation Project. The Chinese project title is 中兴能源棕榈园项目. 2. ZTE Energy purchased two palm oil companies in Indonesia's Kalimantan Island with 30,000 hectares of farmland in 2009. About 13,000 hectares are planted with palm trees. With a $100 million investment, the company was expecting to produce 50,000 tons of palm oil by the end of 2012.