China Eximbank provides $78,153,189 preferential buyer's credit for Phase 7 of Rural Grid Extension Project (Linked to Project ID#32216, #62326, #62331, #62333)

According to the Government of Cambodia’s ODA database, China Eximbank and the Government of Cambodia signed a $78,153,189 preferential buyer’s credit (PBC) agreement on November 27, 2020 for Phase 7 of Rural Grid Extension Project. The borrowing terms of the PBC (loan) are as follows: a 2% interest rate, a 7-year grace period, and a 20-year maturity. China Eximbank made a single loan disbursement in 2021 worth $23,445,957. The lender was originally scheduled to make additional disbursements worth $31,261,276 in 2022 and $23,445,956 in 2023. The borrower was expected to use the proceeds of the loan to finance 95% of the cost of an EPC contract worth $82,266,515 with an unknown EPC contractor. The purpose of the project is to build 2,970 kilometers of medium-voltage (22kV and 35kV) electricity transmission lines, covering 133 villages in 14 provinces (Stung Treng, Kratie, Mondul Kiri, Takeo, Kampong Chhnang, Pailin, Otdar Meanchey, Kampong Speu, Tbong Khmum, Pursat, Kampong Thom, Kampong Cham, Prey Veng, Ratanak Kiri, Siem Reap). The project also involves the construction of the Chroy Changvar substation and the access road to the substation. Project implementation officially commenced on March 2, 2021. According to the Government of Cambodia, the project had achieved a 73% completion rate as of 2022. The originally expected project completion date was December 29, 2022.

Additional details

1. This project is also known as the Expansion of Rural Electrification Project Phase 7 and the Rural Grid Extension Phase VII Project. The Chinese project title is 农村电网扩建（七期）项目 or 柬埔寨农村电网扩建（七期）项目. 2. In the China’s Global Energy Finance Database that Boston University's Global Development Policy Center released in mid-2022, the face value of this China Eximbank loan is identified as $80 million. AidData relies on the precise face value of the loan ($78,153,189) that is recorded by Cambodia’s Ministry of Planning and by the Government of Cambodia’s ODA Database. 3. China Eximbank loans for previous phases of this project are captured via Project ID#32216, #62326, #62331, and #62333.

Number of official sources

4

Number of total sources

14