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Overview

Chinese Government forgives $10 million interest-free loan for construction of USP Law School (Linked to Record ID#39295, #37722)

Commitments (Constant USD, 2023)$14,084,461
Commitment Year•2008Country of Activity•VanuatuDirect Recipient Country of Incorporation•VanuatuSector•Action Relating To DebtFlow Type•Debt forgiveness

Status

Project lifecycle

Completion

Pipeline: PledgePipeline: CommitmentImplementationCompletion

Timeline

Key dates

Commitment date
Jan 1, 2008

Stakeholders

Organizations involved in projects and activities supported by financial and in-kind transfers from Chinese government and state-owned entities

Funding agencies

Government Agencies

  • China Ministry of Commerce

Receiving agencies

Government Agencies

  • Government of Vanuatu

Implementing agencies

Intergovernmental Organizations

  • University of the South Pacific (USP)

Loan description

Chinese Government forgives $10 million interest-free loan for construction of USP Law School (Linked to Record ID#39295, #37722)

Narrative

Full Description

Project narrative

On November 25, 2003, the Chinese Government and the Government of Vanuatu signed a debt rescheduling agreement, which extended the length of the grace period for an interest-free loan that the Government of Vanuatu had contracted in 1995: a $10 million loan for the construction of the University of South Pacific (USP) Law School (see Record ID#39295) that was scheduled to enter its repayment period on November 26, 2003. At the time of the signing of the agreement, Vanuatu’s Minister of Foreign Affairs said, ‘So far, there has never been any loan payments made by the government towards the USP complex. However, the government intends to pay up within this next 5 years.’ Then, in 2013, USP announced that the Chinese Government had cancelled the Government of Vanuatu’s repayment obligations related to the loan that was issued for the construction of the USP Law School. Record ID#37722 captures the 5-year grace period extension and Record ID#73393 captures the cancellation of the Government of Vanuatu’s outstanding repayment obligations.

Staff comments

The precise year in which the Chinese Government cancelled the Government of Vanuatu’s repayment obligations is unknown. For the time being, AidData assumes that the commitment year was in 2008 (when the 5 year grace period extension ended).