Completed Development AidData Chinese Aid

Chinese Government provides RMB 72 million grant for Y-12E Aircraft Procurement Project (Linked to Record ID#73577 and ID #71404)

¥72M RMB

Funder	China Ministry of Commerce
Recipient Organization	Government of Seychelles
Country	Seychelles
Start Date	Jan 01, 2011
End Date	Aug 10, 2032
Duration	7,892 days
Number of Grantees	1
Roles	Recipient
Data Source	AidData Chinese Aid
Grant ID	`2074`

Grant Description

In 2008, China Eximbank issued a government concessional loan (GCL) worth RMB 72 million ($11 million) to the Government of Seychelles for the Y-12E Aircraft Procurement Project.

The proceeds of this loan were to be used by the borrower to purchase two Y-12E aircraft from China National Aero-Technology Import and Export Corporation (CATIC).

To become familiar with the Y-12E, a group of Seychellois engineers and pilots were also scheduled to participate in a 45-day training course in Harbin, where the aircraft are produced.

These aircraft are configured for passenger and cargo transport, as well as emergency rescue, aerial photography, insecticide spreading and maritime surveillance. However, according to the Ministry of Finance and Trade of Seychelles, no disbursements were ever made through the GCL.

Then, on March 24, 2011 the Office of the President of the Republic of Seychelles announced that the Chinese Government had donated two Y-12E aircraft. The aircrafts, along with spares and other equipment, were officially handed over to Seychelles on June 2011.

At the June 17, 2011 project handover ceremony, Seychelles’ Foreign Affairs Minister Jean-Paul Adam announced that “We had first opened discussions on the provision of aircrafts from China in 2006 on the basis of a concessional loan.

However, as Seychelles has been hit subsequently by the financial crisis and the increased pressures of piracy on the economy, the Government of China recognized how critical such capability is for our development at this time and turned the proposed loan into a grant. … This generous gesture will always be remembered and appreciated.

I would like to convey once again our immense gratitude to the people and Government of China for this critical support at this time.” One of the Y-12E aircraft was earmarked for use surveillance activities better protect the country’s exclusive economic zone (EEZ) from foreign threats, including piracy, illegal fishing activities, and drug smuggling.

The other aircraft was earmarked for improving communications and access between Mahé Island and the outer Islands.

📋 Staff Comments

This project is also known as the Y-12E Utility Aircraft Purchase (2 Units) Project. In the database of Chinese loan commitments that SAIS-CARI released in July 2020, it identifies a $11 million China Eximbank loan commitment in 2008 for this project. However, given that the GCL never disbursed (and it was effectively suspended) and the Chinese Government ultimately agreed to fund this project with a grant, AidData has captured this project with two separate records: a record that captures the (de facto) suspension of the RMB 72 million GCL from China Eximbank (see Project ID#73577) and a record that captures the RMB 72 million grant commitment (see Project ID#2074)

📚 Sources & References

http://www.defpro.com/daily/details/946/print/?SID=dc3a0d38a0c65bbfe5463dde4efe8a11
China to give Seychelles military surveillance aircraft for anti-piracy effort, http://www.aviationweek.com/Article.aspx?id=/article-xml/awx_09_22_2011_p0-372600.xml, http://www.defenceweb.co.za/index.php?option=com_content&view=article&id=15556:china-donating-two-y-12-aircraft-to-seychelles&catid=35:Aerospace&Itemid=107
Seychelles to get two Chinese aircrafts to boost inter-island service
China gives Seychelles two planes worth $11m
Seychelles-China loan agreement-Two new planes to improve inter-island service
Government Signs New Cooperation Agreements With Visiting Chinese Delegation
中国运-12轻型飞机亮相塞舌尔国庆阅兵式
Blog Post on HAIG Y-12, http://global.factiva.com/aa/?ref=BBCAP00020110326e73q001mh&pp=1&fcpil=en&napc=S&sa_from=
塞舌尔总统米歇尔出席中国援塞飞机移交仪式
EXIM BANK OF CHINA DEBT STATUS AND RESTRUCTURING NEGOTIATIONS
RE: Request for List of Loans from Chinese Government Institutions to Seychelles
Government Signs New Cooperation Agreements W ith V isiting Chinese Delegation - News - State House Seychelles
Office of the President www .statehouse.gov .sc/news/161 1/government-signs-new-cooperation-agreements-with-visiting-chinese-delegation 2 / 4 Government Signs New Cooperation Agreements With Visiting Chinese Delegation
Annual Report 2011
RE: Request for List of Loans from Chinese Government Institutions to Seychelles
Photo of Signing Ceremony
China donating two Y-12 aircraft to Seychelles 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.