Overview

China Eximbank provides $15 million preferential buyer's credit for acquisition of 12 locomotives

Commitments (Constant USD, 2023)$31,556,044

Commitment Year•2004Country of Activity•CubaDirect Recipient Country of Incorporation•CubaSector•Transport And StorageFlow Type•Loan

Status

Project lifecycle

Completion

Pipeline: PledgePipeline: CommitmentImplementationCompletion

Timeline

Key dates

Commitment date: Jan 1, 2004

Start (actual): Jan 15, 2006

End (actual): Jan 15, 2006

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 Cuba

Implementing agencies

State-owned companies

China Northern Locomotive & Rolling Stock Industry (CNR Group)

Loan description

China Eximbank provides $15 million preferential buyer's credit for acquisition of 12 locomotives

Interest type•Unknown

Narrative

Full Description

Project narrative

In November 2004, during President Hu Jintao's visit to Cuba, China Eximbank and the Government of Cuba signed a $15 million preferential buyer's credit (PBC) agreement for the acquisition of 12 locomotive engines. Then, on January 15, 2006, twelve DF7G-C diesel electric engines were successfully delivered to Havana by China Northern Locomotive & Rolling Stock Industry Corp. These locomotives were the first of their kind that China had ever sent to Latin America. It appears that the locomotives were intended for rail freight transportation, and to replace Cuba's dilapidated fleet of locomotives.

Staff comments

The lender (funding agency) is assumed to be China Eximbank since the project was financed with a preferential buyer's credit, which is a financial instrument that is only used by China Eximbank. The China-Latin America Finance Database, which is co-produced by the Inter-American Dialogue and Boston University’s Global Development Policy Center, does not capture the China Eximbank PBC that supported this project.