China Eximbank provides $80.51 million preferential buyer's credit for Drilling Rigs and Oil Field Equipment and Materials Project (Linked to Project ID#98029, 96221)

On September 27, 2007, China Eximbank and Myanmar Central Bank — signed a $80.51 million preferential buyer's credit (PBC) agreement [China Eximbank PBC No. (2007)10,11,12 TOTAL NO. (031),(032), (033)] for the Drilling Rigs and Oil Field Equipment and Materials Project. This loan was provided to Myanmar Oil and Gas Enterprise (MOGE) — a state-owned oil and gas company in Myanmar -- for the 4 drilling rigs and oil field equipment and materials project. The PBC carried the following borrowing terms: a 15 year maturity, a 5 year grace period, and a 3% interest rate. The borrower had made principal repayments worth $44.28 million and interest repayments worth $19.14 million as of March 31, 2018. The loan’s amount outstanding was $44 million (in loan principal and interest) as of March 31, 2017 and $38.98 million ($36.23 million in loan principal and $2.75 million in loan interest) as of March 31, 2018. There are some indications that the China Eximbank loan for the Drilling Rigs and Oil Field Equipment and Materials Project may have financially underperformed vis-a-vis the original expectations of the lender. In 2020, China Eximbank and the Government of Myanmar signed a debt suspension agreement as part of the G-20 Debt Service Suspension Initiative (DSSI). Under the terms of the agreement, the lender agreed to suspend principal and interest payments due between May 1, 2020 and December 31, 2020 under 3 buyer’s credit loan (BCL) agreements, 6 government concessional loan (GCL) agreements, and 27 preferential buyer’s credit (PBC) agreements (as captured via Project ID#98029). Debt service payments under many of these loan agreements were again deferred in 2021 (as captured via Project ID#96221).

Additional details

1. This project may be part of the $200 million soft loan committed in 2006 (as captured via Project ID#49953). 2. The China Eximbank loan that supported this project is not included in the Overseas Development Finance Dataset that Boston University’s Global Development Policy Center published in December 2020. 3. This project is also known as the Four Drilling Rigs and Oil Field Equipment and Materials Project and the Drillings Rigs and Oil Fields Equipment Project. 4. The amount outstanding data are drawn from EITI reports. See https://www.mopf.gov.mm/sites/default/files/4th%20MEITI%20Report.pdf and https://eiti.org/files/documents/meiti_reconciliation_report_2017-2018_final_signed_31st_march_2020.pdf

Number of official sources

4

Number of total sources

5