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Overview

China Meheco Corporation provides supplier’s credit to Municipality of Rio de Janeiro for Medical Equipment Acquisition Project

Commitments (Constant USD, 2023)$64,800,173
Commitment Year•2020Country of Activity•BrazilDirect Recipient Country of Incorporation•BrazilSector•HealthFlow Type•Loan

Status

Project lifecycle

Completion

Pipeline: PledgePipeline: CommitmentImplementationCompletion

Timeline

Key dates

Commitment date
Jan 1, 2020
Start (actual)
Mar 12, 2020
End (actual)
Jul 1, 2020
Last repayment
Dec 30, 2024

Geospatial footprint

Map overview

Visualizes the AidData-provided feature geometry for this project.

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This project involved financing medical equipment to be used in Rio De Janeiro's public hospitals. For more detailed locational information, see: https://www.openstreetmap.org/relation/2697338.

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

  • China Meheco Group Co., Ltd.

Receiving agencies

Government Agencies

  • Municipality of Rio de Janeiro

Implementing agencies

State-owned companies

  • China Meheco Group Co., Ltd.

Insurance providers

State-owned companies

  • China Export & Credit Insurance Corporation (Sinosure)

Loan desecription

China Meheco Corporation provides supplier’s credit to Municipality of Rio de Janeiro for Medical Equipment Acquisition Project

Interest type•UnknownMaturity•5 years

Narrative

Full Description

Project narrative

In 2020, China Meheco Corporation — a Chinese state-owned enterprise — issued a supplier’s credit to Municipality of Rio de Janeiro for a Medical Equipment Acquisition Project. The proceeds of the loan were to be used by the borrower to partially finance a commercial contract between China Meheco Corporation and Municipality of Rio de Janeiro worth approximately $73,890,665 (BRL 370,000,000). The loan carried a 5-year maturity and an unknown interest rate. The borrower also purchased a credit insurance policy from Sinosure. The purpose of the project was to purchase 18,000 pieces of medical equipment, including x-ray machines and CT scanners. The first batch of CT scanners from China Meheco Corporation (中国医药保健品有限公司 or 中国医药公司) arrived on March 12, 2020. The 6th and last shipment of medical equipment arrived on July 1, 2020. A government audit later revealed that a substantial amount of the purchased equipment was never used.

Staff comments

1. This project is also known as the Renovation of Medical Equipment of the Technological Park of the Municipal Health Secretariat of the City of Rio de Janeiro Project. The Chinese project title is 出口巴西里约市医疗设备项目 or 6台CT机 or 公立医疗系统设备更新项目. The Portuguese project title is renovação do parque tecnológico das unidades de saúde. 2. Established in the year 1984, China Meheco Co., Ltd., which is also known as China Meheco Corporation, is a state-owned enterprise listed on the Shanghai Stock Exchange and its controlling shareholder is China General Technology (Group) Holding Co., Ltd. 3. This was ‘Sinosure’s first medium and long-term export credit insurance project underwritten based on the creditworthiness of the Municipality of Rio de Janeiro.’ 4. The precise monetary value of the supplier’s credit is unknown. For the time being, AidData assumed that it is worth 85% $62,807,065.25) of the total cost of the $73,890,665 (BRL 370,000,000) commercial contract between the Municipality of Rio de Janeiro and China Meheco Corporation. 5. Sinosure provided insurance cover worth $50.73 million.