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CDB and China Eximbank sign financing framework agreement for syndicated loan to support Phnom Penh-Bavet Expressway Project
| Funder | Export-Import Bank of China (China Eximbank) |
|---|---|
| Recipient Organization | Unspecified Special Purpose Vehicle (Phnom Penh-Bavet Expressway Project) |
| Country | Cambodia |
| Start Date | May 18, 2023 |
| End Date | Nov 12, 2029 |
| Duration | 2,370 days |
| Number of Grantees | 1 |
| Roles | Recipient |
| Data Source | AidData Chinese Aid |
| Grant ID | 103455 |
Grant Description
CDB and China Eximbank sign financing framework agreement for syndicated loan to support Phnom Penh-Bavet Expressway Project in Cambodia 2023 On September 16, 2022, China Development Bank, Cambodia’s Ministry of Public Works and Transport, and China Road and Bridge Corporation (CRBC) signed a framework agreement on investment and financing cooperation for the Phnom Penh-Bavet Expressway Project.
Then, on November 10, 2022, CRBC and Cambodia’s Ministry of Public Works and Transport of Cambodia signed an MoU on the construction of the Phnom Penh-Bavet Expressway.
On May 18, 2023, Cambodia’s Ministry of Public Works and Transport signed a public-private partnership (PPP) agreement with a special purpose vehicle (SPV) — that is owned in part or in full by CRBC — for the construction of a Phnom Penh-Bavet Expressway Project.
The total cost of the project is $1.63 billion and it is being implemented on a Build-Operate-Transfer (BOT) basis and financed according to a debt-to-equity ratio of 80:20. CDB and China Eximbank are the only lenders that are known to be supporting the Phnom Penh-Bavet Expressway Project. The purpose of the project is to construct a 135.10 km expressway between Phnom Penh and Bavet.
The two-lane expressway will start from Thmor Kor commune in Lvea Em district and Kandal province and terminate in Chrakmtes commune within Bavet City in Svay Rieng Province.
The expressway will include (a) a 4.1 km long road that passes through Kandal province, (b) a 70.9 km long road that passes through Prey Veng province, and (c) a 60.1 km long road that passes through Svay Rieng province.
The project scope also includes 2.7 km long, 37.5m-high twin bridges that will connect Kandal and Prey Veng provinces along National Road 1 (also known as Neak Loeung).
Upon completion, the expressway is expected to allow all types of vehicles to drive at speeds of up to 100 km per hour and 120 km per hour.
It is also expected to boost investment, trade and tourism in Phnom Penh and Thmey Arey Ksat of Kandal, Prey Veng, Svay Rieng and Bavet, especially bilateral trade, tourism and cross-border trade activities between Cambodia and Vietnam.
In addition, the expressway is expected to ease traffic congestion on National Road No. 1, which in 2023 was experiencing heavy traffic and high risk of accidents. CRBC is the contractor responsible for project implementation.
The Government of Cambodia is in charge of land acquisition for the project site and the construction of cross-border infrastructure.
The project’s groundbreaking ceremony took place on June 7, 2023 and its originally scheduled completion date is June 7, 2027. Svay Rieng provincial authorities have met with residents to discuss compensation for those affected by the project.
Staff Comments
- The Chinese project title is 金巴高速主体公路项目 or 金边-巴域高速公路 or 金边-巴域高速公路 or 金巴高速主体公路项目.
- The precise details of the borrowing arrangement with CDB and China Eximbank are not yet known. The basis for this record is the signed framework agreement on investment and financing cooperation for the Phnom Penh-Bavet Expressway Project. The precise value of the syndicated loan from CDB and China Eximbank is unknown. However, it is known that the $1.63 billion project is being financed according to a debt-to-equity ratio of 80:20, so for the time being AidData assumes that the face value of the syndicated loan is equivalent to 80% of $1.63 billion. This issue warrants further investigation.
Sources & References
- Deal inked for 3rd expressway as ground breaks on Phnom Penh-Bavet
- PP-Bavet Expressway agreement finalised
- CRBC Signed the Agreement of Cambodian Phnom Penh-Bavet Expressway Project
- 驻柬埔寨大使王文天和洪森首相共同出席金边-巴域高速公路开工仪式
- Groundbreaking held for Cambodia’s second expressway, linking capital to Vietnam
- Concessional Loan for PP-Bavet Expressway to be Signed in November
- Phnom Penh-Bavet Expressway begins construction today
- 中交集团与柬埔寨签署金巴高速投资框架协议
- Major expressway accord inked ‘Nov 9’
- CRBC selected to build a USD1.4 billion expressway in Cambodia, 1.4 billion dollar Phnom Penh-Bavet expressway due in four years
- Cambodia signs contract with Chinese firm to build 2nd expressway
- Phnom Penh-Bavet Expressway to take 4 Years for construction, will connect to Ho Chi Minh City
- Phnom Penh-Bavet Expressway and Majestic Bridge: A Groundbreaking Chapter in Cambodia’s Infrastructure Development
- Cambodia starts construction of Phnom Penh - Bavet . expressway
- Interim Report 2023
- Selected Comments Samdech Techo Hun Sen, at the groundbreaking ceremony for the Phnom Penh-Bavet Expressway [Unofficial Translation]
- Work begins on 2nd Chinese-invested expressway in Cambodia Please credit and share this article with others using this link: https://www.bangkokpost.com/world/2587756/work-begins-on-2nd-chinese-invested-expressway-in-cambodia. View our policies at http://goo.gl/9HgTd and http://goo.gl/ou6Ip. © Bangkok Post PCL. All rights reserved.
- 运输部讨论金巴高速规划，商讨贷款程序
- 中国—东盟基础设施互联互通与区域经贸合作论坛成功举办
- 柬埔寨运输部与中方讨论金边-巴域高速项目！
- 运输部讨论金巴高速规划，商讨贷款程序
- Final Report Executive Summary
- 中国路桥签署柬埔寨金巴高速公路项目合同
- PP-Bavet Expressway clauses reviewed
- Bavet expressway to break ground ‘Jun-Jul’
- Phnom Penh-Bavet Expressway Project Study Accelerated
- ASEAN Summit: Belt and Road initiative back on track as China announces infrastructure projects
- China Announces New ASEAN Belt & Road Initiative Projects
- China Puts Belt & Road Back on ASEAN Agenda
- Cambodia
- China sign $1.6B deal for second expressway
- Second Expressway Project to Break Ground in June 2023
- PM
- China’s Li meet for talks, ceremonial expressway opening
- Cambodia mulls expressway PPP with CCCC, ការងារសាងសង់ផ្លូវល្បឿនលឿនទី២តម្លៃ១,៣ពាន់លានដុល្លារនៅកម្ពុជាត្រូវបានចាប់ផ្តើមដំណើការ
- Deal inked for 3rd expressway as ground breaks on Phnom Penh-Bavet
- Authorities discuss compensation for PP-Bavet expressway 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.
All Grantees
Unspecified Special Purpose Vehicle (Phnom Penh-Bavet Expressway Project)
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