Loading grant details…
CAMCE provides RMB 1.43 billion loan — via deferred payment agreement — for Section B of Punta Huete International Airport Reconstruction, Expansion, and Upgrading Project (Linked to Record ID#107086)
| Funder | China CAMC Engineering Co., Ltd. (CAMCE) |
|---|---|
| Recipient Organization | Nicaragua Ministry of Finance and Public Credit |
| Country | Nicaragua |
| Start Date | Dec 21, 2023 |
| End Date | Oct 03, 2028 |
| Duration | 1,748 days |
| Number of Grantees | 1 |
| Roles | Recipient |
| Data Source | AidData Chinese Aid |
| Grant ID | 107143 |
Grant Description
CAMCE provides RMB 1.43 billion loan — via deferred payment agreement — for Section B of Punta Huete International Airport Reconstruction, Expansion, and Upgrading Project On December 21, 2023, China CAMC Engineering Co., Ltd. (CAMCE) and Nicaragua’s Ministry of Finance and Public Credit signed two credit facility (deferred payment) agreements: an RMB 1,438,420,906.22 credit facility agreement for Section A of the Punta Huete International Airport Reconstruction, Expansion, and Upgrading Project (as captured via Record ID#107086) and an RMB 1,436,231,236.69 credit facility agreement for Section B of the Punta Huete International Airport Reconstruction, Expansion, and Upgrading Project (as captured via Record ID#107143).
Both loan agreements were ratified by the National Assembly of Nicaragua on February 9, 2024.
The loans carry the following borrowing terms: a 15-year maturity, a 4.5-year grace period, an annual interest rate of the Loan Prime Rate (LPR) for a period exceeding 5-years (published by the National Interbank Funding Center of the PRC) plus a 1% margin (approximately 5.2% at the time that the loans were issued), a 1.3% upfront fee (RMB 18,699,471.73 for the Section A loan and RMB 18,671,006.08 for the Section B loan), a 0.5% arrangement fee (RMB 7,192,104.53 for the Section A loan and RMB 7,181,156.18 for the Section B loan), a 1% management fee, a 0.7% commitment fee, and a 2% default (penalty) interest fee.
Both loans are backed by Sinosure credit insurance policies.
Both loan agreements also require that the borrower maintain a minimum cash balance of in a debt service reserve (DSR) account that is equivalent to one semi-annual principal and interest payment. For the Section A loan, the borrower is responsible for making 21, semi-annual principal repayments.
The first 20, semi-annual principal repayments are worth approximately RMB 68,468,835.13 (4.76% of the face value of the loan) and the last semi-annual principal repayment is worth approximately RMB 69,044,203.49 (4.8% of the face value of the loan).
The borrower is also expected to use the Section A loan proceeds to cover 80% of the cost of an RMB 1,798,026,132.66 commercial contract between Nicaragua’s Ministry of Transportation and CAMCE, which was signed on October 17, 2023. For the Section B loan, the borrower is responsible for making 21, semi-annual principal repayments.
The first 20, semi-annual principal repayments are worth approximately RMB 68,364,606.86 (4.76% of the face value of the loan) and the last semi-annual principal repayment is worth approximately RMB 68,939,099.36 (4.8% of the face value of the loan).
The borrower is also expected to use the Section B loan proceeds to cover 80% of the cost of an RMB 1,795,289,045.86 commercial contract between Nicaragua’s Ministry of Transportation and CAMCE, which was signed on October 17, 2023.
The purpose of the project is to reconstruct, expand and modernize Punta Huete International Airport (Aeropuerto Internacional Punta Huete), which is located in the municipality of San Francisco Libre.
Upon completion, it is expected that the airport will become a 4E/4F level international airport with a runway and taxiway that is 3,600 meters long and 60 meters wide.
Upon completion, it is also expected that the airport will be capable of receiving more than 3.5 million national and foreign passengers each year. CAMCE is the contractor responsible for implementation. The project was originally expected to commence in July 2024 and reach completion within 48 months (July 2028).
Staff Comments
- The Chinese project title is 尼加拉瓜蓬塔韦特国际机场改扩建项目 or 承建尼加拉瓜蓬塔韦特国际机场改扩建项目. The Spanish project title is El Proyecto del Aeropuerto Internacional Punta Huete or El Proyecto de Reconstrucción, Ampliación y Mejoramiento del Aeropuerto Internacional Punta Huete.
- The loan agreement for Part A of the Punta Huete International Airport Reconstruction Project can be accessed in its entirety via https://www.dropbox.com/scl/fi/cfda2v01czeygr3ef9ikb/Nicaragua-2024-China-CAMCE-Engineering-Co.-Ltd.-Loan-for-Section-A-of-Punta-Huete-International-Airport-Reconstruction-Project.pdf?rlkey=bpgki4j3vt5mdnnqd0oxrm035&dl=0.
- The EPC contract for Part A of the Punta Huete International Airport Reconstruction Project can be accessed in its entirety via https://www.dropbox.com/scl/fi/95c8w9hbojfk9t1mak5jx/EPC-Contract-with-China-CAMCE-Engineering-Co.-Ltd.-for-Part-A-of-Punta-Huete-International-Airport-Reconstruction-Project.pdf?rlkey=r20lo7oeoqcy2eh04mnlh1av7&dl=0.
- The loan agreement for Part B of the Punta Huete International Airport Reconstruction Project can be accessed in its entirety via https://www.dropbox.com/scl/fi/j0ama5ub7oif8xrjf1dl8/Nicaragua-2024-China-CAMCE-Engineering-Co.-Ltd.-Loan-for-Section-B-of-Punta-Huete-International-Airport-Reconstruction-Project.pdf?rlkey=myo6bfwibcfdffkl0vd0ofgtx&dl=0.
- The EPC contract for Part B of the Punta Huete International Airport Reconstruction Project can be accessed in its entirety via https://www.dropbox.com/scl/fi/ukzp3vgjh86woq4djnbj0/EPC-Contract-with-China-CAMCE-Engineering-Co.-Ltd.-for-Part-B-of-Punta-Huete-International-Airport-Reconstruction-Project.pdf?rlkey=hsbm8oahchj82wnqle0yx9tc0&dl=0.
- CAMCE may have borrowed funds from one or more Chinese banks — through an accounts receivable finance agreement — and on-lent the funds to the Ministry of Finance and Public Credit of Nicaragua. Both credit facility agreements for the Punta Huete International Airport Reconstruction Project refer to an accounts receivable assignment agreement (ARAA) in Section 2.
- However, this issue warrants further investigation. In a typical accounts receivable finance agreement (or deferred payment agreement), the company that the project owner in the host country has selected as its engineering, procurement, and construction (EPC) contractor is also a lender to the project owner. The company assigns receivables under its EPC contract with the project owner to one of or more banks. Upon assignment of receivables, the bank or banks will release funds to the company so it can discharge its obligations under the receivables financing agreement as a lender. Receivables financing is also known as accounts receivable financing (finance) or A/R financing (finance) or 应收账款融资 (in Chinese). These other terms are used because the accounts receivable of a company (i.e., unpaid invoices) are being used as collateral to unlock working capital—typically in the form of a bank loan (‘receivables loan’). Sellers often face cash flow problems when their buyers do not make full payment at the due date of the invoice. A receivables financing arrangement addresses this problem by allowing them to sell their outstanding invoices to a bank at a discounted rate. This approach allows the seller to receive the remaining invoice amount before the due date of the invoice. The bank either gets its money back at invoice maturity through the seller (acting as a collecting agent) or directly from the debtor.
- According to Nicaragua’s Ministry of Finance and Public Credit (https://www.dropbox.com/scl/fi/64pilad83xhbw8jz25r2e/Un-d-a-de-alegr-a-Nicaragua-y-China-logran-otro-hito-importante-en-la-cooperaci-n-y-el-desarrollo-Ministerio-de-Hacienda-de-Nicaragua.pdf?rlkey=k3hoa31b0cm76sgei84a3u32w&dl=0), it first signed the credit facility agreements with CAMCE on December 21, 2023. However, the credit facility agreements that were presented to Nicaragua’s National Assembly for approval were dated January 3, 2024. This discrepancy warrants further investigation.
- For loan and debt rescheduling records with variable interest rates, AidData calculates the all-in interest rate at T0 based on the reference rate (such as LIBOR or EURIBOR) on the loan start date, plus any known margin. Please see the methodology for additional details.
Sources & References
- 'Panchito': a legacy of the Cold War
- APRUEBAN ACUERDO DE FACILIDAD DE CRÉDITO PARA RECONSTRUCCIÓN
- AMPLIACIÓN Y MODERNIZACIÓN DEL AEROPUERTO INTERNACIONAL PUNTA HUETE
- Asamblea de Nicaragua aprueba crédito para aeropuerto Punta Huete
- Asamblea Nacional aprueba decreto de facilitación de créditos para el Aeropuerto Punta Huete
- China and Nicaragua sign loan for international airport
- China International Engineering Corporation: Major Contract Announcement
- China’s CAMC Engineering Wins USD492 Million Expansion Project for Nicaraguan Airport
- Chinese firm unveils agreement for airport expansion in Nicaragua, hinting at potential infrastructure ventures
- Chinese firm unveils agreement for airport expansion in Nicaragua, hinting at potential infrastructure ventures
- Chinese firms earmarked for projects have history of corruption
- Construcción del Aeropuerto Punta Huete empezará en «julio de este año», según ministro del MTI
- Credit Facility Agreement For The Reconstruction
- Expansion and Upgrading Project of Punta Huete International Airport in Nicaragua (Section A) Between Ministry of Finance and Public Credit
- Republic of Nicaragua (MOF) And China CAMC Engineering Co.
- Ltd. (中工国际工程股份有限公司) (CAMCE)
- Credit Facility Agreement For The Reconstruction
- Expansion and Upgrading Project of Punta Huete International Airport in Nicaragua (Section B) Between Ministry of Finance and Public Credit
- Republic of Nicaragua (MOF) And China CAMC Engineering Co.
- Ltd.(中工国际工程股份有限公司) (CAMCE)
- DECRETO DE APROBACIÓN DEL ACUERDO DE FACILIDAD DE CRÉDITO (TRAMO A) POR UN MONTO DE RMB 1,438,420,906.22 Y ACUERDO DE FACILIDAD DE CRÉDITO (TRAMO B) POR UN MONTO DE RMB 1,436,231,236.69 PARA UN MONTO TOTAL DE RMB 2,874,652,142.91
- SUSCRITOS EL 03 DE ENERO DE 2024 ENTRE LA REPÚBLICA DE NICARAGUA
- REPRESENTADA POR EL MINISTERIO DE HACIENDA Y CRÉDITO PÚBLICO Y CHINA CAMC ENGINEERING Co.
- Ltd. (CAMCE) DE LA REPÚBLICA POPULAR DE CHINA
- PARA FINANCIAR EL PROYECTO DE RECONSTRUCCIÓN
- AMPLIACIÓN Y MODERNIZACIÓN DEL AEROPUERTO INTERNACIONAL DE PUNTA HUETE EN NICARAGUA
- SIENDO LA UNIDAD EJECUTORA EL MINISTERIO DE TRANSPORTE E INFRAESTRUCTURA (MTI)
- Dictatorship authorizes 'credit facility agreement' for more than US$400 million for Chinese company
- Dictatorship plans to rebuild Punta Huete International Airport, in San Francisco Libre
- Dictatorship promises that Punta Huete International Airport will be the largest in the region
- EPC Contract with China CAMCE Engineering Co.
- Ltd. for Part A of Punta Huete International Airport Reconstruction Project
- EPC Contract with China CAMCE Engineering Co.
- Ltd. for Part B of Punta Huete International Airport Reconstruction Project
- ESPECIAL: Inicia reconstrucción de Aeropuerto Internacional Punta Huete en Nicaragua
- Financiará China megaaeropuerto en Punta Huete de Nicaragua
- Iniciativa DL Aprobación Acuerdo Facilidad Crédito-Proyecto Aeropuerto Punta Huete
- Iniciativa DL Aprobación Acuerdo Facilidad Crédito-Proyecto Aeropuerto Punta Huete.pdf
- INICIATIVA NO. 202410012. DECRETO DE APROBACIÓN DEL ACUERDO DE FACILIDAD DE CRÉDITO (TRAMO A) POR UN MONTO DE RMB 1,438,420,906.22 Y ACUERDO DE FACILIDAD DE CRÉDITO (TRAMO B) POR UN MONTO DE RMB 1,436,231,236.69 PARA UN MONTO TOTAL DE RMB 2,874,652,142.91
- SUSCRITOS EL 03 DE ENERO DE 2024 ENTRE LA REPÚBLICA DE NICARAGUA
- REPRESENTADA POR EL MINISTERIO DE HACIENDA Y CRÉDITO PÚBLICO Y CHINA CAMC ENGINEERING CO.
- LTD. (CAMCE) DE LA REPÚBLICA POPULAR DE CHINA
- PARA FINANCIAR EL PROYECTO DE RECONSTRUCCIÓN
- AMPLIACIÓN Y MODERNIZACIÓN DEL AEROPUERTO INTERNACIONAL DE PUNTA HUETE EN NICARAGUA
- SIENDO LA UNIDAD EJECUTORA EL MINISTERIO DE TRANSPORTE E INFRAESTRUCTURA (MTI).
- Nicaragua and China reach important cooperation and development milestone
- Nicaragua and China sign agreement to develop airport on former military runway
- Nicaragua and China signed a credit agreement for two projects
- Nicaragua and China Team Up on Projects
- Nicaragua aprueba préstamo chino para modernizar aeropuerto
- Nicaragua/China: Countries sign USD 430mn loan for airport
- LPG terminal
- Ortega orders to make debt of 400 million dollars with official Chinese companies
- Se han firmado
- Tendrá Nicaragua nuevo aeropuerto internacional
- The combo of projects that Ortega assures that China will execute in Nicaragua costs more than 4,000 million dollars., [Post on X posted December 21, 2023 by @MHCP_NIC that reads 'Firma del acuerdo de crédito para el proyecto del Aeropuerto Internacional Punta Huete y el Proyecto Tres Esferas para el almacenamiento de GLP.' and includes four photos], ¡Un día de alegría! Nicaragua y China logran otro hito importante en la cooperación y el desarrollo, ¡Undíadealegría!NicaraguayChinalograno otrohitoimportanteenlacooperaciónyeldesarrollo
- 中国信保承保拉美地区首笔人民币中长期主权商贷项目 - 中国一带一路网
- 中工国际参与共建“一带一路”剪影：基于国企改革底座的新打法
- 中工国际：签署尼加拉瓜蓬塔韦特国际机场改扩建项目（A标段和B标段）商务合同
- 多项目签约！“一带一路”企业家大会国机集团合作成果丰硕
- 尼加拉瓜议会批准机场改扩建项目贷款 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
Nicaragua Ministry of Finance and Public Credit
Interested in applying for this grant?
Complete our application form to express your interest and we'll guide you through the process.
Apply for This GrantQuick Summary
Related Grants
