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

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 face delays and implementation challenges related to was delayed by 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.

Additional details

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.

Number of official sources

5

Number of total sources

11