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China Eximbank provides $200 million preferential buyer’s credit for Matara-Beliatta Section of Matara-Kataragama Railway Line Extension Project (Linked to Record ID#33407)
| Funder | Export-Import Bank of China (China Eximbank) |
|---|---|
| Recipient Organization | Sri Lanka Ministry of Finance |
| Country | Sri Lanka |
| Start Date | Feb 19, 2013 |
| End Date | Mar 09, 2030 |
| Duration | 6,227 days |
| Number of Grantees | 1 |
| Roles | Recipient |
| Data Source | AidData Chinese Aid |
| Grant ID | 33396 |
Grant Description
China Eximbank provides $200 million preferential buyer’s credit for Matara-Beliatta Section of Matara-Kataragama Railway Line Extension Project On February 19, 2013, China Eximbank and the Government of Sri Lanka's Ministry of Finance and Planning signed a $200 million preferential buyer's credit (PBC) agreement [CHINA EXIMBANK PBC NO. (2013) 7 TOTAL NO. (251)] for the Matara-Beliatta Section of Matara-Kataragama Railway Line Extension Project.
The Government of Sri Lanka’s Ministry of Finance and Planning on-lent the proceeds of the loan to Sri Lanka Railways (a state-owned company).
The borrower was expected to use the loan proceeds to finance a $278,200,000 commercial contract between Sri Lanka Railways and a consortium consisting of China National Machinery Import & Export Corporation and China Railway No.5 Engineering Group Co.
Ltd, which was signed on August 5, 2010 Then, on May 28, 2013, China Eximbank and the Government of Sri Lanka signed an RMB 508 million government concessional loan (GCL) agreement [China Eximbank GCL (2013) 4 TOTAL NO (449)] for the Matara-Beliatta Section of Matara-Kataragama Railway Line Extension Project.
Record ID#33396 captures the PBC, while Record ID#33407 captures the GCL.
The China Eximbank PBC disbursed $83,460,000 in 2013, $19,274,611.47 in 2014, $30,639,850.95 in 2015, $14,599,733.52 in 2016, $15,919,125.75 in 2017, $13,362,642 in 2018, $6,853,910 in 2019, $15,890,126 in 2020, and $0 in 2021. The PBC had achieved a 100% disbursement rate ($200,000,000 out of $200,000,000) as of December 31, 2020.
The borrower made no repayments on the PBC in 2015, 2016, 2017, 2018, or 2019. The borrower made repayments on the PBC worth $7,692,307 in 2020, $15,384,614 in 2021, and $7,692,307 in 2022.
The PBC’s amount outstanding was $163,893,321 as of December 31, 2017, $177,255,964 as of December 31, 2018, $184,109,874 as of December 31, 2019, $192,307,693 as of December 31, 2020, and $176,923,079 as of December 31, 2021.
The China Eximbank GCL disbursed RMB 39,290,230.29 in 2014, RMB 83,133,097.15 in 2015, RMB 119,587,111.29 in 2016, RMB 22,708,783.36 in 2017, RMB 65,541,716.19 in 2018, RMB 47,377,642 in 2019, and RMB 118,854,502 in 2020. The loan had achieved a 97.7% disbursement rate (RMB 496,493,082.28 out of RMB 508,000,000) as of December 31, 2020.
The borrower made no repayments on the GCL in 2018, 2019, or 2020. The borrower made repayments on the GCL worth RMB 19,538,461 in 2021.
The GCL’s amount outstanding was RMB 276,266,140 as of December 31, 2017, RMB 341,807,856 as of December 31, 2018, RMB 389,185,498 as of December 31, 2019, RMB 508,000,000 as of December 31, 2020, RMB 488,461,539 as of December 31, 2021, and RMB 468,923,078 as of June 30, 2022. By early 2022, it was clear that the PBC and the GCL were non-performing.
On April 12, 2022, the Government of Sri Lanka announced a ‘pre-emptive’ sovereign debt default, noting that it would suspend debt repayments to all external creditors other than multilateral institutions.
Its decision to suspend external debt service reportedly affected all China Eximbank loans with amounts outstanding at the time of the announcement.
The purpose of this project, which is formally part of the Belt and Road Initiative (BRI), was to improve transport in the southern region.
It involved the construction of 26.75 km length of single line broad gauge rail track from Matara to Beliatta (and a designed speed of 120 kilometers per hour); the construction of structures such as culverts, bridges, viaducts those required over the Nilwala river flood plain, level crossings, underpasses, overpasses, and tunnels; as well as the construction of four numbers railway crossing stations, 2 numbers sub stations and functional requirements of stations.
There were three contractors responsible for project implementation: China National Machinery Import and Export Corporation, China Railway No. 5 Engineering Group, and China Railway Electrification Group. A groundbreaking ceremony took place on October 28, 2013. The railway line was completed and opened for use on April 8, 2019.
Staff Comments
- The Southern (Matara-Kataragama) Railway Line Extension Project is being implemented in three stages. The Matara-Beliatta section is the first stage; the Beliatta-Weerawila section is the second stage; the Weerawila-Kataragama section is the third stage.
- The Government of Sri Lanka loan key number is 2013005.
- The China Eximbank loan agreement can be accessed in its entirety via https://www.dropbox.com/s/gxelevqnonno3su/Sri%20Lanka%202013%20China%20Eximbank%20PBC%20for%20Matara%20Beliatta%20Section%20of%20Matara%20Kataragama%20New%20Railroad%20Extension%20Project%20.pdf?dl=0.
Sources & References
- China agrees to finance 2nd stage Hambantota Harbour Project and extension of Southern Railway Line to Hambantota, $600m Rail Deal to China Firm, 2015 Annual Report Ministry of Finance Sri Lanka, 814 Disbursements Jan to Dec 2015, 814 up to Oct 2018.PDF, 814-1 Annual 2017 for WEB New.pdf
- Actual Disbursement by Transaction Date
- Beliatta – Matara railway service launched
- China Communications Construction Builds Sri Lankan Port
- China Communications Construction ink pact with Sri Lanka
- China Exim Bank signs $ 200 m loan to put Matara-Beliatta on track
- China Exim Bank signs $ 200 m loan to put Matara-Beliatta on track - See more at: http://www.ft.lk/2013/03/04/china-exim-bank-signs-200-m-loan-to-put-matara-beliatta-on-track/#sthash.F2Ba3wwm.dpuf
- China grants 200 mln USD in loans for new railway project in Sri Lanka
- China to provide $200m loan for Sri Lankan railway project
- Chinese company gets huge railway contract
- Chinese Government has approved a Concessional Loan of US$ 278.2 million for Matara - Beliatta Railway Extension Project
- Construction of Matara –Kataragama Railway line
- Construction of Sri Lanka's Southern Railway begins
- CS-DRMS Report 814
- CS-DRMS Report 814
- Development Performance Mid Year Review 2016
- DEVELOPMENT PERFORMANCE YEAR END REVIEW 2015
- Development_Performance_MidYear_2015
- Disbursement from January to December 2016.pdf
- Disbursements in 2014 January to December.pdf
- Environmental Impact Assessment of Transport Infrastructure Projects in Sri Lanka: Way Forward
- FINANCIAL STATEMENTS OF THE GOVERNMENT FOR THE YEAR ENDED 31 ST DECEMBER 2020
- FINANCIAL STATEMENTS OF THE GOVERNMENT FOR THE YEAR ENDED 31ST DECEMBER 2018
- FINANCIAL STATEMENTS OF THE GOVERNMENT FOR THE YEAR ENDED 31ST DECEMBER 2019
- FINANCIAL STATEMENTS OF THE GOVERNMENT FOR THE YEAR ENDED 31ST DECEMBER 2021
- Government of Sri Lanka 2017 Bond Prospectus
- H. E. Ambassador Wu Jianghao attended the launching ceremony of the Southern Railway
- Instrument-wise Details of Central Government External Debt obtained under Foreign Law as at 2022/06/30
- Major Sri Lankan rail scheme goes to Chinese firm thanks to loan
- Matara - Beliatta Section of the Matara - Kataragama Railway Line Extension Project
- Matara - Kataragama railway extension project on track
- MATARA-BELIATTA RAILWAY EXTENSION PROJECT
- Matara-Kataragama Railway Extension Project-Phase 1
- Performance of Priority Projects (As at 31st December - 2017)
- Performance Report 2013
- Performance Report 2017
- Preferential Buyer Credit Loan Agreement: On the Matara-Beliatta Section of Matara-Kataragama Railroad Extension Project
- Progress as per the end of 3rd Quarter 2017 Department of Project Management and Monitoring
- Progress of development projects and programmes being implemented in 2017 (As at 30th September 2017)
- Progress of development projects and programmes being implemented in 2017 ( as at 31st December 2017)
- Progress of the Projects Implemented through the Capital Budget in the year 2016
- Public Investment supported by Export Credit
- Resource Mobilization
- Sri Lanka opens first phase of China-financed Southern Railway line
- Sri Lanka opens railway built by Chinese companies
- Sri Lanka to extend southern railway line to Kataragama with US$ 278 million loan from China
- The Export-Import Bank of China
- Transactions For the period from to 2019/01/01 2019/12/31
- Transactions For the period from to 2020/01/01 2020/12/31
- Transactions For the period from to 2021/01/01 2021/11/30
- US$ 278.2mn Chinese loan for railway extension project
- 中国进出口银行李若谷行长率团实地考察中机公司斯里兰卡南部铁路项目
- 中国进出口银行贷款2亿美元用于斯里兰卡铁路建设
- 外媒关注中国帮斯里兰卡修铁路
- 驻斯里兰卡大使吴江浩出席南部铁路开工仪式 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.
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Sri Lanka Ministry of Finance
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