China Eximbank provides $70.28 million preferential buyer’s credit for the Darawat Dam Project (Linked to Project ID#35904)

In 2010, China Eximbank and the Government of Pakistan signed a $70.28 million preferential buyer's credit (PBC) agreement for the Darawat Dam Project. The borrowing terms of the loan are unknown. The purpose of the project was to construct the Darawat dam, which is located on the Nai Baran River near Jhangri village in Jamshoro District and Sindh Province. Its locational coordinates are 25°24′33.4″N 67°56′33.3″E. Sinohydro was the contractor responsible for project implementation. On January 2, 2010, a groundbreaking ceremony took place for the project. The contractor (Sinohydro) mobilized to project site on June 30, 2010. The project completion ceremony took place on March 9, 2013.

Additional details

1. The Chinese project title is 达瓦特大坝. 2. One WAPDA source suggests that the China Eximbank loan may have covered 90% of the total project cost. 3. Some sources also refer to this dam as the "Darwat Dam". 4. This project is related to a 2009 pledged line of credit for small dams in Pakistan (captured via Project ID#35904). 5. The total cost of the EPC contract awarded to Sinohydro was 7.555 billion Pakistani rupees, and preferential buyer’s credits from China Eximbank typically cover 85% of the total cost of a project, so AidData estimates that the face value of the (USD-denominated) China Eximbank PBC for the Darawat Dam project was 6.42175 billion Pakistani rupee. Based on the average Pakistani rupee to USD exchange rate in 2010 (86.05 PKR = 1 USD), the estimated USD value of the preferential buyer’s credit from China Eximbank was $74,628,123. However, Pakistan's Ministry of Finance records the face value of the loan as $70,280,000. The official value is recorded as the transaction (financial commitment) amount for the time being. This issue warrants further investigation.

Number of official sources

12

Number of total sources

16