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Overview

China Eximbank provides RMB 439.03 million loan for Huaxin Cement Plant Construction Project

Commitments (Constant USD, 2023)$66,362,799
Commitment Year•2019Country of Activity•NepalDirect Recipient Country of Incorporation•NepalSector•Industry, Mining, ConstructionFlow Type•Loan

Status

Project lifecycle

Completion

Pipeline: PledgePipeline: CommitmentImplementationCompletion

Timeline

Key dates

Commitment date
Jan 1, 2019
Start (actual)
Mar 1, 2019
End (actual)
Jan 8, 2022

Geospatial footprint

Map overview

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The purpose of the project was to construct a cement factory in Benighat Rorang Rural Municipality in Dhading District. More detailed locational information can be found at https://www.openstreetmap.org/way/1104903562 or https://goo.gl/maps/gw9kh1CzTZRk6Xez6.

Stakeholders

Organizations involved in projects and activities supported by financial and in-kind transfers from Chinese government and state-owned entities

Funding agencies

State-owned Policy Banks

  • Export-Import Bank of China (China Eximbank)

Receiving agencies

Joint Venture/Special Purpose Vehicles

  • Huaxin Cement Narayani Pvt. Ltd (华新水泥纳拉亚尼有限公司)

Guarantors

Private Sector

  • Huaxin Cement Co., Ltd.

Loan desecription

China Eximbank provides RMB 439.03 million loan for Huaxin Cement Plant Construction Project

Interest type•Unknown

Narrative

Full Description

Project narrative

In 2019, China Eximbank and Huaxin Cement Narayani Pvt. Ltd (华新水泥纳拉亚尼有限公司 or 华新纳拉亚尼投资（上海）有限公司) — a special purpose vehicle and joint venture of Huaxin Central Asia Investment (Wuhan) Co., Ltd. and Vaidya's Organization of Industries & Trading Houses (VOITH) — signed an RMB 439,030,000 loan agreement for the Huaxin Cement Plant Construction Project. The borrowing terms of the loan are unknown. However, it is known that Huaxin Cement Co., Ltd. issued a loan repayment guarantee. The purpose of the project was to construct a cement factory (clinker production line) — with production capacity of 3,000 tons per day and 1 million tons per year — in Benighat Rorang Rural Municipality in Dhading District. Construction began in March 2019. Nepal's Speaker of House of Representatives Krishna Bahadur Mahara and Vice President of China's Huaxin Cement Xu Gang also attended the project’s foundation stone laying ceremony on March 1, 2019. The project faced delays and implementation challenges related to floods, disputes over land acquisition, and the COVID-19 pandemic. However, the cement plant was officially completed and commissioned on January 8, 2022. China Eximbank also provided a $7.8 million loan to Huaxin Cement Narayani Pvt. Ltd in June 2021 for the acquisition of advanced production equipment, environmental protection technology, and management experience. The implementation status of this supplementary project is unknown and requires further investigation.

Staff comments

1. The Chinese project title is 华新水泥尼泊尔直接投资项目. 2. China Eximbank has publicly identified itself as a lender to Huaxin Cement Narayani Pvt. Ltd (华新水泥纳拉亚尼有限公司). For the time being, AidData assumes that the RMB 439.03 million loan was issued by China Eximbank. This issue warrants further investigation. 3. Huaxin Cement Co., Ltd. obtained an foreign direct investment permit from the Government of Nepal in January 2016, and completed industrial registration in Nepal with a capital of 28 million US dollars in December 2017.