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Overview

China Eximbank provides RMB 80 million government concessional loan for Al Furat Cotton Mill Equipment Modernization Project (Linked to Record ID#65099)

Commitments (Constant USD, 2023)$18,830,183
Commitment Year•2006Country of Activity•Syrian Arab RepublicDirect Recipient Country of Incorporation•Syrian Arab RepublicSector•Industry, Mining, ConstructionFlow Type•Loan

Status

Project lifecycle

Implementation

Pipeline: PledgePipeline: CommitmentImplementationCompletion

Timeline

Key dates

Commitment date
Jan 1, 2006
Start (planned)
Jan 1, 2006
Start (actual)
Jul 17, 2007
End (planned)
Dec 31, 2011
First repayment (originally scheduled)
Dec 31, 2008
Last repayment (originally scheduled)
Dec 30, 2015

Geospatial footprint

Map overview

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The purpose of this project was to modernize the equipment of a cotton mill called the Al Furat Spinning and Weaving Company (شركة الفرات للغزل والنسيج), which is located on the outskirts of the city of Deir Ez Zour (دير الزور). Its exact locational coordinates are 35°23'42”N, 40°14'26”E. More detailed locational information can be found at https://www.openstreetmap.org/way/473074242#map=10/35.4085/40.2424.

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

  • Government of Syria

Implementing agencies

State-owned companies

  • China Textile Industrial Corporation for Foreign Economic & Technical Cooperation (CTEXIC)

Loan desecription

China Eximbank provides RMB 80 million government concessional loan for Al Furat Cotton Mill Equipment Modernization Project

Grace period•3 yearsInterest type•UnknownMaturity•10 years

Narrative

Full Description

Project narrative

In June 2004, the Chinese Government and the Government of Syria signed a preferential loan framework agreement. Then, according to a dataset of foreign-financed projects that the Syrian Planning Commission (SPC) provided to UNDP Syria in May 2011, the China Eximbank provided an RMB 80 million ($11,776,000) government concessional loan (GCL) in 2006. This loan carried a 10 year maturity and a 3 year grace period. Its interest rate is unknown. The borrower was to use the loan proceeds to finance a commercial contract with China Textile Industrial Corporation for Foreign Economic and Technical Cooperation (CTEXIC). The purpose of this project was to modernize the equipment of a cotton mill called Al Furat Spinning and Weaving Company (شركة الفرات للغزل والنسيج), which is located on the outskirts of the city of Deir Ez Zour (دير الزور). Its exact locational coordinates are 35°23'42”N, 40°14'26”E. CTEXIC was the contractor responsible for implementation. The originally expected project implementation start date was January 1, 2006 and the originally expected project completion date was December 31, 2011. On July 9, 2007, the President of CTEXIC met with Dr. Fouad Al Jouni, Syrian Industrial Minister. During that meeting, the project was described as ‘ongoing’. However, a project commencement order was not issued until July 17, 2007. Then, during the second half of 2008, a set of new weaving machines were successfully delivered.

Staff comments

1. This project may also be known as the Renewing Furat Spinning Mill Project in Deir Ez-Zour, the Al Furat Spinning Company Modernization Project, the Renewal of Syria Deir Ez Zour Elfurat Spinning Company Project, or the Equipment Renewal in Mill No.1 of Syria Deir Ez Zour Elfurat Spinning Company Project. The Arabic project title is مشروع تجديد معمل الفرات للغزل بدير الزور. The Chinese project title is 叙德尔祖尔棉纺厂设 or 叙利亚杰布莱新棉纺厂项目 or 叙德尔祖尔棉纺厂设备更新改造项目 or 叙利亚德尔祖尔厂棉纺设备更新改造项目 or 棉纺设备更新改造项目. 2. According to written correspondence between Hala Imad (from the Government of Syria’s State Planning Commission) and WANG Hong (from the Concessional Loan Department of China Eximbank) on June 21, 2010, China Eximbank issued two separate GCLs for the Al Furat Spinning and Weaving Company: the Renewal of Syria Deir Ez Zour Elfurat Spinning Company Project and the Equipment Renewal in Mill No.1 of Syria Deir Ez Zour Elfurat Spinning Company Project. However, it is unclear which project was supported by the 2002 GCL (captured in Record ID#65099) and which project was supported by the 2006 GCL (captured in Record ID#85250). This issue merits further investigation.