Active Development AidData Chinese Aid

China Eximbank provides RMB 1.38 billion government concessional loan for Phase 2 of East Coast Demerara Road Project (Linked to Record ID#70805)

¥1.38M RMB

Funder	Export-Import Bank of China (China Eximbank)
Recipient Organization	Guyana Ministry of Finance
Country	Guyana
Start Date	Mar 08, 2023
End Date	Feb 10, 2032
Duration	3,261 days
Number of Grantees	1
Roles	Recipient
Data Source	AidData Chinese Aid
Grant ID	`100165`

Grant Description

China Eximbank provides RMB 1.38 billion government concessional loan for Phase 2 of East Coast Demerara Road Project On December 30, 2022, Senior Finance Minister of Guyana, Dr.

Ashni Singh, and Guo Haiyan, Ambassador of the People’s Republic of China to Guyana, signed a preferential loan framework agreement for Phase 2 of the East Coast Demerara Road Project.

Then, on March 8, 2023, the Export-Import Bank of China signed an RMB 1,384,580,867.13 government concessional loan (GCL) agreement [CHINA EXIMBANK GCL NO. (2023) 1 TOTAL NO. (769)] with Government of Guyana’s Ministry of Finance for Phase 2 of the East Coast Demerara Road Project.

📋 Loan / Grant Terms

💰 Loan Amountcarried the following borrowing terms: a 20-year maturity

📅 Maturity20 years

⏳ Grace Period5 years

💹 Interest Rate2%

It was scheduled for repayment in 31 semi-annual repayments.

The borrower was expected to use the proceeds of the loan to fully finance an RMB 1,384,580,867.13 commercial contract [ID#ECD2-C/B] between the Government of Guyana’s Ministry of Public Works and the China Railway First Group Company, which was signed on September 30, 2022.

Phase 2 of the East Coast Demerara Road Project involves the extension of the Railway Embankment Road into four lanes from Sheriff Street to Orange Nassau, extension of the main East Coast Roadway from Orange Nassau to Mahaica as well as rehabilitation of the existing East Coast Demerara road from Belfield to Orange Nassau which will allow for additional lanes.

It also involves the construction of 48 bridges and 22 culverts and another bridge across the Hope Canal.

Upon completion, it is expected to ease traffic congestion, reduce commuting times, increase economic activity, and promote industrialization and job creation along the East Coast corridor. China Railway First Group Company is the EPC contractor responsible for implementation.

As of June 2023, construction had begun on the road, with contractors executing drainage construction works along the railway embankment between Mon Repos and Annandale.

Additionally, on the Belfield to Unity section, the contractor was preparing the right side for the widening of the road.

These works included clearing and widening the area and backfilling with loam material to commence the construction of the widened road pavement. It is estimated to take 28 months to complete.

The government's originally expected to complete the project within 28 months (estimated project completion date: December 31, 2024).

A revised project completion date is October 31, 2025, according to a January 2025 update from the Ministry of Public Works.

📋 Staff Comments

The China Eximbank loan agreement can be accessed in its entirety via https://www.dropbox.com/scl/fi/2rexl4ylidjbnd4l6ykvu/Guyana-2023-China-Eximbank-Loan-for-East-Coast-Demerara-Road-Project-Phase-2.pdf?rlkey=fm293nbi4s655q0oo37r17obg&dl=0.
The China Eximbank-financed First Phase of the East Coast Demerara Road Project was completed in 2020 (as captured via Record ID#70805)

📚 Sources & References

Senior Finance Minister Dr. Ashni Singh and Her Excellency Guo Haiyan
Ambassador of the People’s Republic of China to Guyana today signed a Framework Concessional Loan Agreement
At a Crossroads: Chinese Development Finance to Latin America and the Caribbean, 2022
ATIONAL ASSEMBLY SUPPLEMENTARY ORDER PAPER FOR THE 63RD SITTING OF THE NATIONAL ASSEMBLY OF THE FIRST SESSION (2020-2023) OF THE TWELFTH PARLIAMENT OF GUYANA TO BE HELD AT 10.00 A.M. ON MONDAY, 24TH APRIL, 2023
IN THE DOME OF THE ARTHUR CHUNG CONFERENCE CENTRE
LILIENDAAL
GREATER GEORGETOWN
Budget Estimates 2022 – Volume 3
China-Latin America Finance Database
Chinese company awarded US$184M contract for East Coast road project
Chinese-funded East Coast Demerara project to ease traffic congestion; cater for Enmore industrial hub
EAST COAST ROAD PROJECT TO COMMENCE UNDER GOVERNMENT’S EXPANSIVE
AGGRESSIVE TRANSPORT INFRASTRUCTURE INITIATIVE
Five firms bid to provide engineering service for US$192M East Coast Road Project
Government Concessional Loan Agreement on the Guyana East Coast Demerara Road Project Phase 2
Government presents Concessional Loan Agreement for US$192M Phase 2 East Coast Road to the National Assembly
Gov’t presents House with Concessional Loan Agreement for US$192M Phase 2 ECD road project
Guyana in loan deal with China for major East Coast road boost
Guyana secures US$192M loan for Phase 2 of ECD road project
Mid-Year Report 2023
Phase 2 of the East Coast Road project moving apace
PROCEEDINGS AND DEBATES OF THE NATIONAL ASSEMBLY OF THE FIRST SESSION (2020-2023) OF THE TWELFTH PARLIAMENT OF GUYANA UNDER THE CONSTITUTION OF THE CO-OPERATIVE REPUBLIC OF GUYANA HELD IN THE DOME OF THE ARTHUR CHUNG CONFERENCE CENTRE
LILIENDAAL
GREATER GEORGETOWN
Report of the Auditor General to the National Assembly on the Public Accounts of Guyana and on the Accounts of Ministries
Departments and Regions for the Fiscal Year Ended 31 December 2023
Senior Finance Minister Dr. Ashni Singh and Her Excellency Guo Haiyan
Ambassador of the People’s Republic of China to Guyana today signed a Framework Concessional Loan Agreement
Signing ceremony of the concessional loan framework agreement for the Guyana East Coast Demerara Road Project Phase Two
US$192 Million Phase 2 East Coast Road Project to commence under Government’s expansive, aggressive transport infrastructure initiative
US$192M East Coast road project to be completed by end of October
US$192M loan agreement signed for continuation of ECD road project
Work to widen Belfield to Mahaica road underway
第三届“一带一路”国际合作高峰论坛务实合作项目清单 Loan applications and disbursements are still being received and processed as the projects continue to evolve. Ongoing monitoring and evaluation are in place to ensure project continuity.