Chinese Government provides Vt 2.5361 billion grant for Pentecost Road Project (Linked to Record ID#90059)

Project narrative

On September 3, 2020, China Civil Engineering Construction Corporation signed a VT 6,931.1 billion commercial contract with the Government of Vanuatu to build the Pentecost Road. The contract was signed by Vanuatu’s Minister of Finance and Economic Management Johnny Koanapo, and CCECC South Pacific Ltd Director Liang Qing. At the contract signing ceremony, it was announced that 36.6% of the commercial contract cost (Vt2,536.1 billion) would be financed with a Chinese Government grant and 63.4% of the commercial contract cost (Vt4,395,000,000) would be financed with a loan from China Eximbank. Then, on January 22, 2021, the Chinese Government and the Government of Vanuatu signed a financial framework agreement for the Pentecost Road Project. The project involves the rehabiliation of a 55 km tar sealed road on Pentecost Island. It will be implemented in three stages. Stage 1 will begin in the Beyomo area and run to the Melsisi area. Stage 2 will run from the Melsisi area to Bwatnapni. Stage 3 will run from Bwatnapni to North Pentecost. The ultimate goal is to increase agricultural production, as the highway will help producers sell their produce with more ease. The road will be upgraded from a muddy road to a 2-lane road. China Civil Engineering Construction Corporation (CCECC) is the contractor responsible for implementation. In November 2020, the Government of Vanuatu, through the Council of Ministers (COM), approved CCECC to bring 28 engineers and special equipment operators from China to Vanuatu. CCECC provided assurances that all of its workers had complied with the necessary health and safety requirements put in place by the Government of Vanuatu after leaving Shanghai and transiting in Auckland before arrival in Port Vila. The technical workers were intended to 'deliver major infrastructure projects and complete ongoing ones,' including the Pentecost Road Project. On January 22, 2021, a foundation-laying ceremony for the Pentecost Road Project was held. Then, on June 6, 2022, a groundbreaking ceremony was held. The project was originally expected to reach completion within 3 years.