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China signs RMB 2 billion loan facility agreement with Bolivia for Industrial Purchases and Aircraft (linked to Record ID#s #36007 #35957 #39435 #39440)
| Funder | China Development Bank (CDB) |
|---|---|
| Recipient Organization | Government of Bolivia |
| Country | Bolivia |
| Start Date | Jan 01, 2011 |
| End Date | Feb 09, 2027 |
| Duration | 5,883 days |
| Number of Grantees | 1 |
| Roles | Recipient |
| Data Source | AidData Chinese Aid |
| Grant ID | 36006 |
Grant Description
China signs RMB 2 billion loan facility agreement with Bolivia for Industrial Purchases and Aircraft In 2010, a framework agreement was signed for a loan split into five lines, which together add up to 2 billion Renminbi, or about 300 million USD.
The projects financed include the acquisition of gas pipelines, military aircraft, construction machines for highways, gas drills and six helicopters to be used for civilian defense and humanitarian acts. The total number of aircraft obtained via these loans is 14.
The military aircraft referenced are likely the six K-8 aircraft purchased in 2011 worth about 57.8 million USD/385.33 million RMB (see Record ID#35957).
The construction machines for highways referenced are likely those in the Engineering Battalion Machinery Project purchased with a 281 million RMB loan (see Record ID#39435).
The six helicopters are explicitly linked to the Harbin H425 Helicopters purchased with a 716,427,053.03 RMB loan (see Record ID#36007).
The gas drills referenced are likely those in the Drilling Acquisitions Project purchased with a 411 million RMB loan (see Record ID#39440).
The project associated with the acquisition of gas pipelines is unknown and does not appear in the oldest available public debt registry (2015).
The acquisition of gas pipelines was linked to the leasing of two Xian MA60 turboprop airliners which were delivered in February of 2008. These aircraft were paid for by a 280 million Yuan loan, ratified on 08/08/2007. In total, the known loans are worth about 1793.76005 million RMB (1.793 billion RMB).
Staff Comments
1) The 'five line loan' reference appears to come from a single quote by the Chinese Ambassador to Bolivia, Shen Zhiliang (see 'China financiará a Bolivia compra de seis helicópteros H425') - Edit: This reference is found in multiple sources.2) MOFCOM suggests this agreement was approved through the China Development Bank (CDB), though the projects that ostensibly line up with those described were all financed through China Ex-Im Bank (Chexim). 3) There is confirmation that a framework agreement was signed on December 22, 2011 (see Ley 538 and Plan Estratégico Institucional 2013-2017) that funded the acquisition of helicopters, but most of the projects that are referenced began before December 22, 2011. The framework agreement signed on February 2, 2010, captured in project #39439, makes more sense as the referent given the timing of the projects likely funded under it. However, the helicopter project is almost certainly funded through agreement from December 2011.There are multiple sources that refer to this 2 Bil RMB/300 Mil USD as a single facility--will leave as is. Regarding the confusion on whether CDB or Exim Bank funded this, multiple sources explicitly refer to CDB as the funder. However, it is possible that EXIM bank may have been made the funder at the last moment but there aren't many sources to back that up.
Sources & References
- The New Banks in Town: Chinese Finance in Latin America
- China and Bolivia Signed A Framework Agreement Regarding a Concessional Loan Provided by the Chinese Government(中国和玻利维亚就我对玻提供优惠贷款签订政府间框架协议)
- China financiará a Bolivia compra de seis helicópteros H425
- Ley Nº 538, 20 de junio de 2014
- China
- Bolivia sign credit agreement of industrial purchase
- Bolivian Army Buys 6 Chinese H425 Helicopters
- Bolivia comprará helicópteros a China
- China-Latin America Finance Database
- 中国拉美军事交往：善意、善做生意、意在 战略地位
- China
- Bolivia sign agreement of industrial purchase
- International - U.S. Energy Information Administration (EIA)
- Beyond the Zapata scandal/ outsourcing Bolivia's national development to China
- Bolivia type-certifies Xian Aircraft's MA-60 for operations - ch-aviation
- Xian MA60 Turboprop Airliner
- CHINA-LATIN AMERICA MILITARY ENGAGEMENT: GOOD WILt
- GOOD BUSINESS.
- AND STRATEGIC POSITION
- CUADERNOS DE COYUNTURA
- Plan Estratégico Institucional 2013-2017
- Informe de la Deuda Externa Publica al 31 de diciembre de 2015
- Bolivia: Ley Nº 78, 29 de diciembre de 2010
- CHINA’S FINANCING IN LATIN AMERICA AND THE CARIBBEAN 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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Government of Bolivia
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