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

Project narrative

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 China National Heavy Machinery Corporation (CHMC). 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. China National Heavy Machinery Corporation (CHMC) was the EPC contractor responsible for implementation. 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.