Active Mixed AidData Chinese Aid

China Eximbank pledges $800 million preferential buyer's credit for Second Penang Bridge Construction Project (Linked to Record ID#66615)

$800K USD

Funder	Export-Import Bank of China (China Eximbank)
Recipient Organization	Bank Pembangunan Malaysia Berhad
Country	Malaysia
Start Date	Jul 13, 2007
End Date	Apr 30, 2030
Duration	8,327 days
Number of Grantees	1
Roles	Recipient
Data Source	AidData Chinese Aid
Grant ID	`34958`

Grant Description

China Eximbank pledges $800 million preferential buyer's credit for Second Penang Bridge Construction Project In 2006, the Government of Malaysia selected UEM Group Berhad — a wholly owned subsidiary of Khazanah Nasional Bhd — as the concessionaire responsible for building, managing, operating and maintaining the second Penang bridge.

Then, on July 13, 2007, a joint venture called the CHEC-UEMC Consortium was formed by China Harbour Engineering Company Ltd (51% ownership stake) and UEMC (49% ownership stake) to implement the Penang Second Crossing Bridge Construction Project. UEMC is a subsidiary of UEM Group.

On the same day, China Eximbank and Bank Pembangunan — a state-owned development bank in Malaysia — signed a memorandum of agreement (MOA) regarding a $800 million preferential buyer's credit (PBC) for the Second Penang Bridge Construction Project.

📋 Loan / Grant Terms

📅 Maturity20 years

💹 Interest Rate3%

The proceeds of the PBC were to be used to partially finance an EPC contract with the CHEC-UEMC Consortium.

However, UEM and CHEC could not arrive at a shareholders agreement in July 2008 due to disagreements over the apportionment of jobs and costs. Then, on August 29, 2008, the Malaysian Government terminated its concession agreement with UEM Group Berhad.

Jambatan Kedua Sdn Bhd (JKSB) -- a special purpose vehicle and wholly owned company of Malaysia’s Ministry of Finance Incorporated (MOF Inc.) -- was subsequently appointed as the concessionaire responsible for the Second Penang Bridge Construction Project.

In 2009, China Eximbank and JKSB signed a $330 million PBC agreement for the Second Penang Bridge Construction Project (captured in #66615). Malaysia’s Ministry of Finance issued a sovereign guarantee in support of the PBC. China Eximbank waived the requirement that the borrower purchase buyer’s credit insurance from Sinosure.

The purpose of the project was to construct a 24 km (15 mi) dual carriageway toll bridge that connects Bandar Cassia (Batu Kawan) in Seberang Perai on mainland Peninsular Malaysia with Batu Maung on Penang Island.

The bridge consists of precast segmental concrete marine viaducts in 55-meter (180-feet) span modules and a cast in-situ concrete cable-stayed bridge measuring 475 meters (1,558 feet). It is the second bridge to link the island to the mainland after the first Penang Bridge.

It extends over 16.9 km (10.5 mi) of water, making it the longest bridge in Malaysia and the second longest in Southeast Asia. China Harbour Engineering Company Ltd (CHEC) and UEM Builders were the main contractors responsible for implementation. Construction began on November 8, 2008 and the originally scheduled project completion date was November 8, 2013.

As of December 2009, the project had achieved an 8.65% completion rate. It was 24% complete as of April 2010. On January 27, 2011, the construction of the main bridge pile foundation was completed. The project was 60.87% complete as of March 2012. The capping of the main tower took place on August 7, 2012.

As of October 3, 2012, the project was 84% complete.

The final closure of the cable stayed bridge at the main navigational span of the Penang Second Bridge was completed on April 20, 2013.

Then, on April 30, 2013, Prime Minister Najib Tun Razak became the country’s first leader to use the Penang Second Bridge to cross from the island to the mainland to attend a function in Kepala Batas, Seberang Perai. Penang Second Bridge was officially completed and accepted by the project owner (JKSB) on September 15, 2013.

It was opened to the traffic at 12.01 AM on March 2, 2014 and renamed the Sultan Abdul Halim Muadzam Shah Bridge.

It was named after Tuanku Abdul Halim Muadzam Shah, the Sultan of Kedah and the reigning Yang di-Pertuan Agong of Malaysia, by Prime Minister Datuk Seri Najib Tun Razak.

📋 Staff Comments

This project is also known as the Second Penang Bridge Project, the E28 Bridge Construction Project, and the Penang Second Crossing Bridge Construction Project. The Chinese project title is 马来西亚槟城二桥工程 or 马来西亚槟城二桥（第二跨海大桥) or 马来西亚槟城二桥项目 or 马来西亚槟城二桥项目. The Malay project title is Jambatan Sultan Abdul Halim Muadzam Shah or Jambatan Kedua Pulau Pinang. The China Eximbank loan that supported this project is not included in the Overseas Development Finance Dataset that Boston University’s Global Development Policy Center published in December 2020. The $800 million PBC pledge in 2007 is captured in Project ID#34958. The $330 million PBC commitment in 2009 is captured in Project ID#66615. Malaysia’s Ministry of Finance Incorporated is a corporate entity owned by the Government of Malaysia’s Ministry of Finance that has the authority to enter into contracts, acquisitions, purchases, possessions, holdings and maintains tangible and intangible assets.

📚 Sources & References

China loans RM2.7b for second Penang bridge
China signs loan facility for building bridge in Malaysia
China gives Malaysia $800 million loan for bridge project
China's Exim Bank gives Malaysia 800 million dollar loan for bridge project
EXIM BANK OF CHINA PROVIDES US$800 MILLION LOAN FOR SECOND PENANG BRIDGE
EXIM BANK OF CHINA PROVIDES US$800 MILLION LOAN FOR SECOND PENANG
Malaysia secures 800 mln usd loan from China for second Penang bridge - UPDATE
Malaysia secures 800 mln usd loan from China for second Penang bridge - UPDATE
Malaysia gets 800m dollars from China for second Penang bridge project
China lends US$800m to build second Penang bridge
UPDATE:China Exim Bk To Lend Malaysia $800M For Bridge Proj
Chinese bank to lend Malaysia US$800 million for bridge project, 2ND PENANG BRIDGE TO SPIN OFF MILLIONS OF RINGGIT IN JOBS
SERVICES
Sultan Abdul Halim Mu'adzam Shah Bridge
黄惠康大使应邀出席槟城二桥开通典礼并顺访槟城
Jambatan kedua mula November
中马签署协议在马建造跨海大桥长22.5公里
中国马来西亚签署协议合作建造北马跨海大桥
有桥就有更大的梦
中国企业参与承建的马来西亚槟城第二跨海大桥正式通车
Jambatan kedua dipercepat
Tiga punca jambatan kedua lewat siap
Exim Bank of China sedia pinjaman AS$800 juta
Projek Jambatan Pulau Pinang Tingkatkan Pertumbuhan Koridor Utara
Penang Second Bridge
Penang
Malaysia
FAST TRACK WITH TOO MANY SPEED BUMPS
Tiff on 2nd bridge job resolved
重大项目
中马签订槟城二桥施工合同, 【国外】走向海外的“敲门砖”
马来西亚槟城二桥工程：用技术创新对冲项目成本增加
中交三航局承建的马来西亚槟城二桥临时码头开工
把5100多根桩子准确敲进海底，是怎么的体验？
中交三航局承建的马来西亚槟城二桥临时码头开工
马来西亚槟城二桥
马来西亚槟城第二跨海大桥
业务概览
Chinese bank to lend Malaysia US$800m for bridge project
中国企业参与承建的马来西亚槟城第二跨海大桥正式通车
EUMCCI Review Vol 2 No. 4
Penang Second Bridge: The Challenges
Success Criteria and Lessons Learnt
中马政府签署槟城二桥项目优惠买方贷款协议
THE SECOND PENANG BRIDGE IN MALAYSIA WAS COMPLETED AND OPEN TO TRAFFIC
Year 2017 - PENGURUSAN SYARIKAT KERAJAAN DAN AGENSI KERAJAAN PERSEKUTUAN
Statements of Public Debt and Security as at 31 December 2014
Sultan Abdul Halim Muadzam Shah Bridge
Tiga punca jambatan kedua lewat siap
Second Penang bridge put on fast-track mode
Jambatan Pulau Pinang Kedua Siap Tahun 2013
Jambatan kedua Pulau Pinang sedang dibina
Cross-sea bridge promotes Malaysia's development
Harmonizing Investment and Financing Standards towards Sustainable Development along the Belt and Road
Islamic Medium Term Notes pursuant to an Islamic Medium Term Notes Programme of RM2.2 billion under the Shariah principle of Musharakah
Second Penang Bridge costs to remain RM4.3b
Tiff on 2nd bridge job resolved
Facility Information
Despite Cheap China Loan
Local Funds Underwrite Second Penang Bridge
GovernmentConcessional-Loan-PreferentialBuyer-sCredit-Brochure-pdf.pdf
东南亚最⻓跨海⼤桥——⻢来⻄亚槟城⼆桥建成通⻋
中交股份马来西亚槟城二桥项目签字仪式13日举行
槟城第二跨海大桥简介
马来西亚槟城二桥项目签字仪式在吉隆坡举行
马来西亚槟城第二跨海大桥（槟城二桥）正式通车
重大项目
苏丹阿都哈林大桥
中国驻马来西亚大使程永华考察马来西亚槟城二桥项目
国际商报：中国港湾：创新科技树海外环保榜样
搭建中马友谊桥梁跻身国际高端市场——中交四航局第一工程有限公司圆满承建马来西亚槟城第二跨海大桥
Good stake in Second Penang Bridge project
China's Overseas Development Finance
Global Perspectives on China’s Belt and Road Initiative
SULTAN ABDUL HALIM MU'ADZAM SHAH BRIDGE (Penang Second Bridge), 24 km
Completed (2014) 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.