Completed Mixed AidData Chinese Aid

CAMC provides $34.9 million supplier credit for Banaoang Pump Irrigation Project (Linked to Record ID#34701)

$34.98M USD

Funder	China National Construction & Agricultural Machinery Import & Export Corporation (CAMC)
Recipient Organization	Government of the Philippines
Country	Philippines
Start Date	Oct 01, 2001
End Date	Feb 05, 2026
Duration	8,893 days
Number of Grantees	1
Roles	Recipient
Data Source	AidData Chinese Aid
Grant ID	`34534`

Grant Description

CAMC provides $34.9 million supplier credit for Banaoang Pump Irrigation Project In October 2001, China National Construction & Agricultural Machinery Import & Export Corporation (CAMC) and the Department of Finance of the Government of the Philippines signed a $34,980,616 supplier credit agreement for the Banaoang Pump Irrigation Project (BPIP).

📋 Loan / Grant Terms

💰 Loan Amountfor local farm project and hybrid rice growth (captured via Record ID#34701) and all subsidiary loans issued under this line of credit carried the following terms: a 3% interest rate

📅 Maturity8 years

⏳ Grace Period2 years

💹 Interest Rate3%

This project involved the construction of a pumping station, irrigation channels, a bridge, a tunnel, and power supply and electrical transmission lines — as well as the improvement of farm-to-market roads and drainage infrastructure — in the barangay of Banaoang I within Ilocos Sur district.

It sought to tap water from Abra River that flows from the mountains in the north going west to the West Philippine Sea (South China Sea), and its tributary that flows south was to be the main source of irrigation water.

A pumping station with seven units of electric-powered pumps was to be constructed on the right bank of the river about 150 meters upstream of the Banaoang Bridge.

A 15 km, 67 kilovolt transmission line was to be installed from the National Power Corporation sub-station in Bantay to the project site in order to supply the necessary electricity. A 600 meter tunnel was also to be constructed to connect the pump station to the main canal.

The total length of the main canal was to be about 20.60 km and it was expected to distribute water through a network of lateral and sub-lateral canals (measuring 32 km in length).

Additionally, 90 km of main farm ditches, 176 km of supplementary farm ditches, 50 km O&M roads, and 30 km of drainage canals were to be constructed.

The project was judged, at appraisal, to be economically viable with an economic internal rate of return (EIRR) of 20.0% (above the 15% hurdle rate used by the Government of the Philippines).

Upon completion, it was expected that the project would irrigate 6,312 hectares of land and benefit 5,334 farm households in six municipalities (Vigan, Bantay, San Vicente, San Ildefonso, Sto. Domingo, and Magsingal). CAMC was the contractor responsible for implementation. Its work was overseen by the National Irrigation Administration (NIA) of the Government of the Philippines.

The project commenced in March 2003 and it was originally expected to reach completion in 2006. However, the project experienced a number of delays. Chief among these was the unforeseen occurrence of salt water in the lateral irrigation channels.

The discovery of brackish water in the irrigation channels necessitated an extending of the channels four kilometers more inland to tap sweet water, which was not anticipated when the original project design plans were drawn. The project was officially inaugurated on July 25, 2011.

However, due to unexpected salt water intrusions and associated the cost increases, additional project work continued in 2012 and 2013.

📋 Staff Comments

This project is also known as the The Banaoang I Irrigation Project. The Chinese project title is Banaoang 农业灌溉设施项目 or 菲律宾巴纳旺农业灌溉工程项目.
The Government of Philippines loan identification number for the supplier credit (loan) that supported the Banaoang Pump Irrigation Project is CHI-1. Its loan identification number in the Debt Management and Financial Analysis System (DMFAS) is 29495000.
Until his retirement, Edilberto Punzal, NIA project director, was in charge of the Banaoang I Pump Irrigation Project. He was replaced by Engineer Jaime Paguio in the main office in Quezon City and site engineers Rex R. Rabanal and Arnulfo A. Lagasca in Banaoang.
The term of the supplier credit (loan) was extended on December 27, 2009. However, no further details are available about this loan rescheduling. This issue merits further investigation.

📚 Sources & References

China provides loan for Philippine irrigation project.
CHINA TO PROVIDE USD 35 MLN IN LOAN TO FUND IRRIGATION PROJECT IN NORTHERN PHILIPPINES.
China Provides Loan for Philippine Irrigation Project.
Philippines-China relations, 2001–2008: Dovetailing national interests
Evaluating aid for trade on the ground: Lessons from the Philippines, 2013 Consolidated Audit Report on Official Development Assistance Programs and Projects, 2009 Consolidated audit report on Official Development Assistance projects, 2010 Consolidated audit report on Official Development Assistance projects
Recently completed projects
P2.5-B Banaoang Irrigation Project bolsters rice sufficiency efforts in Ilocos
NIA to fast track Ilocos Sur's P2.4-B irrigation project
Banaoang Pump Irrigation Project in the Philippines
RP
China sign 14 deals boosting bilateral trade.
中菲重要双边文件
菲律宾巴纳旺农业灌溉工程项目
田其祥馆长领事参观巴纳旺灌溉工程
CY 2008 ODA Portfolio Review Annex 1-B List of Active Programs
Projects CY 2008
Philippines-China Infrastructure Cooperation: Lessons and Prospects
FOREIGN ASSISTED PROJECTS BY DONOR / CREDITOR
FY 2008-2010
FOREIGN-ASSISTED PROJECTS BY DEPARTMENT/AGENCY AND SPECIAL PURPOSE FUND
FY 2008 - 2010
Consolidated Audit Report on Official Development Assistance (ODA) Projects, 2007 State of the Nation Address
Bridging the Infrastructure Investment Gap through Foreign Aid: A Briefer on Chinese ODA, 2010 ODA Portfolio Review Annex 3-A List of Active ODA Loans
CY 2007 ODA Portfolio Review Annex 1-B List of Active Projects Reviewed
OUTSTANDING EXTERNAL DEBT FROM REGULAR LIABILITIES OF THE NATIONAL GOVERNMENT
AS OF YEAR-END, 2013-2015, 2008 ODA Portfolio Review
CHINA’S ECONOMIC DEVELOPMENT ASSISTANCE TO THE PHILIPPINES: A Preliminary Assessment*
BANAOANG PUMP IRRIGATION PROJECT IN THE PHILIPPINES
NIB DIRECTOR GENERAL INSPECTS BANAOANG PROJECT
Banawan Irrigation Project
Philippines
DA chief inaugurates P1-billion irrigation facility
P2.5-B Banaoang Irrigation Project Bolsters Rice
China Provides Loan for Philippine Irrigation Project
Banaoang Pump Irrigation Project in the Philippines
ASN VISITS BANAOANG PUMP IRRIGATION PROJECT
FOREIGN DEBT SERVICE OF REGULAR LIABILITIES OF THE NATIONAL GOVERNMENT
BY CREDITOR, 2007-2009
OUTSTANDING FOREIGN DEBT FROM REGULAR LIABILITIES OF THE NATIONAL GOVERNMENT
AS OF YEAR END 2007-2009
FOREIGN DEBT SERVICE FOR REGULAR LIABILITIES OF THE NATIONAL GOVERNMENT
BY CREDITOR, 2008-2010
OUTSTANDING FOREIGN DEBT FROM REGULAR LIABILITIES OF THE NATIONAL GOVERNMENT
AS OF YEAR END 2009-2011
FOREIGN DEBT SERVICE FOR REGULAR LIABILITIES OF THE NATIONAL GOVERNMENT
BY CREDITOR, 2010-2012
OUTSTANDING FOREIGN DEBT FROM REGULAR LIABILITIES OF THE NATIONAL GOVERNMENT
AS OF YEAR END 2008-2010
FOREIGN DEBT SERVICE FOR REGULAR LIABILITIES OF THE NATIONAL GOVERNMENT
BY CREDITOR, 2016-2018
FOREIGN DEBT SERVICE FOR REGULAR LIABILITIES OF THE NATIONAL GOVERNMENT
BY CREDITOR, 2009-2011
OUTSTANDING FOREIGN DEBT FROM REGULAR LIABILITIES OF THE NATIONAL GOVERNMENT
AS OF YEAR-END, 2016-2018
OUTSTANDING EXTERNAL DEBT FROM REGULAR LIABILITIES OF THE NATIONAL GOVERNMENT
AS OF YEAR-END, 2018-2020
OUTSTANDING FOREIGN DEBT FROM REGULAR LIABILITIES OF THE NATIONAL GOVERNMENT
AS OF YEAR END, 2010-2012
EXTERNAL DEBT SERVICE FOR REGULAR LIABILITIES OF THE NATIONAL GOVERNMENT
BY CREDITOR, 2018-2020
FOREIGN DEBT SERVICE FOR REGULAR LIABILITIES OF THE NATIONAL GOVERNMENT
BY CREDITOR, 2017-2019
REVENUE PROGRAM
BY SOURCE, 2013 - 2017
EXTERNAL DEBT SERVICE FOR REGULAR LIABILITIES OF THE NATIONAL GOVERNMENT
BY CREDITOR, 2020-2022
NATIONAL GOVERNMENT FINANCING, 2014-2016
OUTSTANDING FOREIGN DEBT FROM REGULAR LIABILITIES OF THE NATIONAL GOVERNMENT
AS OF YEAR-END, 2014-2016
FOREIGN DEBT SERVICE FOR REGULAR LIABILITIES OF THE NATIONAL GOVERNMENT
BY CREDITOR, 2014-2016
OUTSTANDING EXTERNAL DEBT FROM REGULAR LIABILITIES OF THE NATIONAL GOVERNMENT
AS OF YEAR-END, 2019-2021
OUTSTANDING EXTERNAL DEBT FROM REGULAR LIABILITIES OF THE NATIONAL GOVERNMENT
AS OF YEAR-END, 2023-2025
FOREIGN DEBT SERVICE FOR REGULAR LIABILITIES OF THE NATIONAL GOVERNMENT
BY CREDITOR, 2022-2024
OUTSTANDING FOREIGN DEBT FROM REGULAR LIABILITIES OF THE NATIONAL GOVERNMENT
AS OF YEAR-END, 2017-2019
PAGSARMINGAN The China-funded Banaoang Pump Irrigation System
Technical and Institutional Evaluation of Selected National and Communal Irrigation Systems and Characterization of Irrigation Sector Governance Structure
PROJECT DESCRIPTION FOR SCOPING (UPPER BANAOANG PROJECT) 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.