China Eximbank provides $64 million preferential buyer's credit for National Road No. 41 (NR41) Reconstruction and Upgrading Project (Linked to Record ID#33092)

Project narrative

On April 12, 2022, China Eximbank and the Government of Cambodia signed a $64,087,000 China Eximbank preferential buyer’s credit (PBC) agreement for the National Road No. 41 Reconstruction and Upgrading Project. The loan carries the following borrowing terms: a 2% interest rate, a 7-year grace period, and a 20-year maturity. The borrower is expected to use the proceeds of the loan to finance a commercial contract with China Road and Bridge Corporation (CRBC). During calendar years 2022 and 2023, China Eximbank disbursed $12,817,400 and $17,089,867, respectively, in support of the National Road No. 41 Reconstruction and Upgrading Project. As of early 2024, the lender planned to disburse $17,089,866 in 2024 and $17,089,866 in 2025. The purpose of the project is to expand and upgrade National Road No. 41 (NR41), a 95.26 km road which connects Thnal Totueng in Kampong Speu province, at the intersection of NR4 in Kandal, with Chum Kiri district in Kampot, at the intersection of NR3. The project scope includes (1) widening the 95.26 km road to 12 meters (with a cm thick AC rubber concrete floor) according to Chinese Standard Level 2, (2) extending a 200 meter bridge from 7 meters to 12 meters wide, (3) constructing corner drains along the road with 120 covers, (4) constructing drainage infrastructure in 158 places along the road, (5) constructing drainage boxes in 37 places along the road, and (6) equipping the road with the speed cameras in 8 places. The 95 km road project is expected to connect major international ports such as the Sihanoukville Autonomous Port and Kampot multi-purpose port, as well as the logistics center under construction at the Kampot tourism port and a newly-constructed Kep-Koh Tonsay tourism port. It is also expected to connect eco-tourism sites in Preah Sihanouk, Kep and Kampot provinces through NR3, NR4, NR31 and NR33. CRBC is the EPC contractor responsible for project implementation. Guangzhou Wanan Construction Supervision Co., Ltd. is responsible for project supervision. A groundbreaking ceremony took place on December 26, 2022. The project’s originally scheduled commencement and completion dates were September 1, 2022 and December 31, 2025, respectively.