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Overview

China Dalian International Cooperation (Group) Holdings Ltd via Zhong Da International Engineering Company provides $3.126 million loan for 70 km Road Construction Project (Linked to Record ID#55444 and #92500)

Commitments (Constant USD, 2023)$3,409,596
Commitment Year•2016Country of Activity•SurinameDirect Recipient Country of Incorporation•SurinameOverseas Jurisdiction•SurinameSector•Other Social Infrastructure And ServicesFlow Type•Loan

Status

Project lifecycle

Completion

Pipeline: PledgePipeline: CommitmentImplementationCompletion

Timeline

Key dates

Commitment date
Mar 30, 2016
Start (actual)
Jul 1, 2016
End (actual)
Sep 1, 2017
Last repayment
Aug 29, 2016

Geospatial footprint

Map overview

Visualizes the AidData-provided feature geometry for this project.

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The purpose of this project was to construct 70 kilometers of roads in Suriname, including a 8 km road to Matta, the Poerwojadieweg (Poerwodadiweg) road in Lelydorp, and Verlengde Jacques Gompertsstraat. More detailed locational information can be found at https://www.openstreetmap.org/directions?engine=graphhopper_car&route=5.6997%2C-55.2395%3B5.7346%2C-55.2311 and https://www.openstreetmap.org/way/135542688#map=13/5.4359/-55.2906 and https://www.openstreetmap.org/directions?engine=graphhopper_car&route=5.87296%2C-55.12580%3B5.84869%2C-55.14010#map=17/5.84550/-55.14006 and https://www.openstreetmap.org/directions?engine=graphhopper_car&route=5.83860%2C-55.14597%3B5.84869%2C-55.14010#map=17/5.83564/-55.14622

Stakeholders

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

Ultimate beneficial owners

At least 25% host country ownership

Funding agencies

State-owned companies

  • Zhong Da International Engineering Company (Suriname) N.V.

Receiving agencies

Government Agencies

  • Government of Suriname

Implementing agencies

State-owned companies

  • Dalian International Economic and Technical Cooperation Group (CDIG)

Loan desecription

China Dalian International Cooperation (Group) Holdings Ltd via Zhong Da International Engineering Company provides $3.126 million loan for 70 km Road Construction Project

Grant element•1.068%Interest rate (t₀)•4.3989%Interest type•Variable Interest RateLoan tenor•6-month rateMaturity•0.41666 years

Narrative

Full Description

Project narrative

On December 29, 2015, Industrial and Commercial Bank of China Limited (ICBC) signed a buyer’s credit loan agreement worth $65,297,000 with the Government of Suriname's Ministry of Public Works for a 70 km Road Construction Project. The loan, which is captured via Record ID#55444, carried the following borrowing terms: a 14 year maturity, a 2.5 year grace period, an interest rate of 3-month LIBOR plus 350 basis points, a commitment fee of 1%, and a management fee of 1%. The proceeds of the loan were to be used by the borrower to partially finance of the cost of a commercial contract between the Government of Suriname and Dalian International Economic and Technical Cooperation Group (CDIG). The ICBC loan was also backed by a Sinosure credit insurance policy. In order pay for 85% of the cost of the Sinosure insurance policy (premium), the Government of Suriname contracted an additional $5.797 million loan on March 30, 2016 from China Dalian International Cooperation (Group) Holdings Ltd (captured via Record ID#92500). The $5.797 million loan carried a 5 year maturity and an interest rate of 6-month LIBOR plus 350 basis points. On the same day (March 30, 2016), the Government of Suriname signed a $3.126 million loan agreement with Zhong Da International Engineering Company (Suriname) N.V. — a wholly owned subsidiary of CDIG that is legally incorporated in Suriname — for the 70 km Road Construction Project (captured via Record ID#95966). The loan carried a 5-month maturity (final maturity date: August 31, 2016) and an interest rate of 6-month LIBOR plus a 3.5% margin. The proceeds of the loan from Zhong Da International Engineering Company (Suriname) N.V. were to be used by the borrower to finance the advance/down payment portion of the commercial contract between CDIG and the Government of Suriname. The purpose of the project was to construct 70 kilometers of roads in Suriname, including a 8 km road to Matta, the Poerwojadieweg (Poerwodadiweg) road in Lelydorp, and Verlengde Jacques Gompertsstraat. CDIG was the contractor responsible for project implementation. Project implementation took place between July 2016 and September 2017.

Staff comments

1. AidData estimates the “all-in” interest rate by adding a 3.50% margin to the average 6-month LIBOR rate in March 2016 (0.901%). 2. The China-Latin America Commercial Loans Tracker, which is produced by the Inter-American Dialogue, does not capture the loan that supported this project. 3. The Dutch project title is Dalian 70. 4. Suriname's Debt Management Office (SDMO) classifies this loan as a "domestic loan" to the residency of the creditor. See https://sdmo.org/documenten/leningen/Leenovereenkomsten_Binnenland_2016.pdf