China Eximbank provides $54.2 million loan for acquisition of 1300 freight wagons

Project narrative

On April 23, 2002, China Eximbank and the Government of Pakistan signed a $54,236,875 loan agreement to facilitate the acquisition of 1,300 freight wagons by Pakistan Railways. The loan carried an interest rate of 5.25% and a maturity of 15 years. The scope of the project included (a) the acquisition of 420 freight wagons for Pakistan Railways that were to be manufactured in China, and (b) the acquisition of remaining 880 freight wagons for Pakistan Railways that were to be produced at the Moghalpura Railway Workshops in Lahore. China State Railway Group Company, Ltd. was the contractor responsible for project implementation. As of April 2005, 130 out of 1300 freight wagons had been delivered, and another 130 were slated for arrival in June 2005. As of 2010, all 1300 freight wagons had been delivered.