China Eximbank provide $111.7 million preferential buyer's credit for Skun-Kampong Cham Section of National Road No.7 Upgrading Project

Project narrative

On November 9, 2022, China Eximbank and the Government of Cambodia signed a $111,758,000 China Eximbank preferential buyer’s credit (PBC) agreement for the Skun-Kampong Cham Section of National Road No.7 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 year 2023, China Eximbank disbursed $22,351,600 in support of the Skun-Kampong Cham Section of National Road No.7 Upgrading Project. At that time, the lender planned to disburse $44,703,200 in 2024 and $44,703,200 in 2025. The purpose of the project is to upgrade the quality of the 45.489 km Skun-Kampong Cham Section of National Road 7 (NR7) and expand it from 2 lanes to 4 lanes. The Skun-Kampong Cham Section starts from the Skun roundabout in Cheung Prey district and ending at the roundabout on the west bank of the Kizuna Bridge in Kampong Cham. The project will seek to improve the quality of the road from National Road Level 2 to National Road Level 1, which has a speed limit of 80 kilometers (km) per hour. The project scope includes (1) 1 km of Skun town road and 2.229 km of Kampong Cham town road, which is to be widened to 20.50 meters by 9 cm thick rubber concrete floor on 15 meters wide; (2) the normal road section, 42.26 meters long, which is to be widened to 24.50 meters by 9 cm thick concrete pavement on 21 meters wide; (3) construction of 8 bridges (both new and old) with a total length of 156 meters, (4) the construction of a drainage network along all types of roads measuring 21,649 meters in length; and (5) construction of a location for 3 long trucks return, equipped with 2 speed cameras and 2 overweight truck scales. 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 January 9, 2023. The project’s originally scheduled commencement and completion dates were June 1, 2022 and December 31, 2025, respectively.