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Overview

China Eximbank provides $42 million government concessional loan for Rice Development Project

Commitments (Constant USD, 2023)$45,520,349
Commitment Year•2012Country of Activity•CubaDirect Recipient Country of Incorporation•CubaSector•Industry, Mining, ConstructionFlow Type•Loan

Status

Project lifecycle

Completion

Pipeline: PledgePipeline: CommitmentImplementationCompletion

Timeline

Key dates

Commitment date
Dec 1, 2012
Start (actual)
Dec 1, 2013
End (actual)
Aug 30, 2015

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

  • Cuba Ministry of Finance

Implementing agencies

Government Agencies

  • Cuba Ministry of Agriculture

State-owned companies

  • Shantui Construction Machinery Co., Ltd.

Loan description

China Eximbank provides $42 million government concessional loan for Rice Development Project

Interest type•Unknown

Narrative

Full Description

Project narrative

In December 2012, China Eximbank and Cuba's Ministry of Finance signed a $42 million government concessional loan (GCL) agreement for the Rice Development Project. The borrowing terms of the loan are unknown. The purpose of the project was to acquire 154 pieces of heavy construction equipment, including bulldozers, graders, wheeled loaders, excavators, forklifts, road machinery. Shantui Construction Machinery Co., Ltd. was the contractor responsible for project implementation. It delivered the first batch of equipment (52 pieces) in December 2013, the second batch of equipment (50 pieces worth $14 million) on June 27, 2014. and the third batch of equipment (52 pieces worth $14 million) in August 2015.

Staff comments

1. In some of the sources, this project is referred to as the Cuban Ministry of Agriculture Project, but the full name of the Cuban Ministry of Agriculture Project is the Cuban Rice Development Project. 2. The Chinese project title is 古巴水稻发展项目. 3. The precise face value of the GCL is unknown. However, given that GCLs are used to cover 100% of the value of the underlying commercial contract and the first batch of construction equipment was likely worth $14 million, AidData assumes a face value of $42 million ($14 million for the first batch of equipment, $14 million for the second batch of equipment, and $14 million for the third batch of equipment). This issue warrants further investigation. 4. This China Eximbank loan is not captured in the China-Latin America Finance Database, which is co-produced by the Inter-American Dialogue and Boston University’s Global Development Policy Center.