[Cancelled] China Eximbank provides $89.3 million buyer’s credit loan for purchase of 75 passenger coaches and locomotives to Pakistan (Linked to Record ID#35902)

[Cancelled] China Eximbank provides $89.3 million buyer’s credit loan for purchase of 75 passenger coaches and locomotives to Pakistan On December 14, 2009, Pakistan Railways signed a $89,371,582.55 buyer’s credit loan agreement with China Eximbank for the purchase of 75 railway coaches and locomotives.

Under the terms of the buyer’s credit loan agreement [ID#BLA0922], Pakistan Railways agreed to purchase 75 railway coaches and locomotives from Dongfang Electric Corporation (DEC). This loan agreement was plagued by controversy.

In 2011, the Chairman of Pakistan Railways conceded before a two-member Supreme Court bench that procurement rules and regulations were violated in the sole-source procurement of the 75 locomotives, resulting in huge losses to the national exchequer. 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.