China Eximbank provides $116.2 million preferential buyer’s credit for Prek Tnaot Irrigation and Flood Protection Project

Project narrative

On July 20, 2021, China Eximbank and the Government of Cambodia signed a $116,270,500 preferential buyer’s credit (PBC) agreement for the Prek Tnaot Irrigation and Flood Protection Project (Khmer:ត្តគម្រោងប្រព័ន្ធស្រោចស្រពនិងការពារទឹកជំនន់ព្រែកត្នោត). The PBC (loan) carries the following borrowing terms: a 20-year maturity, a 7-year grace period, and a 2% interest rate. By the end of calendar year 2021, the loan had achieved a 30% disbursement rate ($34,881,150 out of $116,270,500). The purpose of the project is to deepen 20 kilometers of the Prek Tnaot River and to upgrade the sluice gates in Phnom Penh and Kandal provinces to reduce flooding. Guangdong Foreign Construction Co., Ltd and Guangdong Yuantian Engineering Company Co., Ltd. are the contractors responsible for project implementation. Their work is being supervised by Cambodia’s Ministry of Water Resources and Meteorology. The project officially commenced on December 1, 2021 and it was originally scheduled to reach completion in December 31, 2023. As of January 2022, the project had achieved a 22% completion rate. By May 24, 2024, the Cambodian Government reported the project is 95% completed.