China National Chemical Engineering No.14 Construction Co. Ltd provides $43.78 million supplier’s credit for Fuel Hydrant System Project

Project narrative

On June 26, 2019, China National Chemical Engineering No.14 Construction Co. Ltd issued a $43.78 million supplier’s credit (loan) to Ceylon Petroleum Corporation for the Fuel Hydrant System Project. The Government of Sri Lanka issued a sovereign guarantee in support of the supplier’s credit, which has a final maturity date of January 31, 2031. The proceeds of the loan were to be used by the borrower to partially finance a $51.5 million contract between Ceylon Petroleum Corporation and WEC Engineers and Constructors Pte Ltd and China National Chemical Engineering Co. Ltd, which was signed in January 2018. The loan's amount outstanding was $13.5 million as of December 31, 2019, $18.58 million as of December 31, 2020, $21.69 million as of December 31, 2021, $24.89 million as of December 31, 2022, and $26.3 million as of December 31, 2023. The purpose of the project is to build a fuel hydrant system at Bandaranaike International Airport in Katunayake, which is located 32.5 kilometers north of the island nation's capital of Colombo. The fuel hydrant system will supply Apron E, which has 17 parking bays. WEC Engineers and Constructors Pte Ltd and China National Chemical Engineering Co. Ltd are the contractors responsible for implementation. As of April 2021, this project had achieved a 55% completion rate.