Chinese Government provides TOP 3 million grant for Phase 2 of International Dateline Hotel Renovation Project (Record ID#63641, #37616, #42192)

📋 Staff Comments

This project is also known as Fa’onelua Convention Center Renovation Project and Phase 2 of the International Dateline Hotel Expansion and Upgrading Project. The Chinese project title is 汤加国际日界线酒店项目. The Tongan project title is Ngaue Fakalelei'I 'oe Hotele Dateline.Neither of the China Eximbank loans that supported this project are included in the Overseas Development Finance Dataset that Boston University’s Global Development Policy Center published in December 2020.In 2001, a joint venture called Janfull International Dateline Hotel Ltd. was established to manage the International Dateline Hotel in Tonga. It was jointly owned by Janfull Group (51% ownership stake) and International Dateline Hotel Ltd. (49% ownership stake). Janfull Group was owned by China’s Ministry of Commerce and International Dateline Hotel Ltd. was owned by the Government of Tonga. This joint venture is captured in Project ID#42192. In August 2010, the Government of Tonga announced its intent to dissolve the joint venture, citing differences with Janfull Group (a Chinese state-owned enterprise). At the time, the hotel was performing ‘well below international standards’, according to an ADB report. In June 2011, Tonga’s Minister of Public Enterprises successfully applied to have the joint venture placed into liquidation by a court. This move was designed to allow the Government of Tonga to regain control of the hotel—once it had proven its loan to the liquidator’s satisfaction—and then seek private investment or ownership to reestablish the hotel as a high-quality accommodation facility. The Government of Tonga purchased Janfull Group’s 51% ownership stake in Janfull International Dateline Hotel Ltd. after settling unpaid debts (worth $11 million) to China Eximbank. The Government of Tonga then asked the International Finance Corporation (IFC) to served as a transaction advisor and structure, and competitively tender and award a project for the rehabilitation and operation of the International Dateline Hotel on a Public-Private Partnership (PPP) basis. After longer-than-anticipated negotiations, a long-term management concession agreement was signed with an international hotel operator – Tanoa Group – who completely redeveloped the hotel. As of late 2016, the hotel reopened. There have been no further costs to the Government of Tonga since the concession agreement was signed; the hotel is now the largest in Tonga, and a high-quality (4.5 star) hotel. Occupancy rates were estimated at 39% in April 2017.The concession loan for Phase 1 was likely denominated in RMB. However, AidData has only managed to identify the USD equivalent of the face value of the loan. This issue requires further investigation.China Foreign Construction Corporation, Guangsha Chongqing Construction (Group) Co., Ltd., China Civil Engineering Construction Corporation (CCECC), Jiangsu Construction Group Corp., Hunan Construction Engineering Group Corporation, China National Overseas Engineering Corporation, Qingdao Construction Group Corporation were all invited to tender, but CCECC won the contract for Phase 2.

📚 Sources & References

• Tonga seeks Chinese loan to buy back electricity assets
• The People’s Republic of China’s Aid Program in Oceania 2005-2009
• The Development Needs of Pacific Island Countries
• CONVENTION CENTER OPENS AT TONGA’S DATELINE HOTEL
• 援汤国际会议厅建设项目顺利移交
• 商务部合作局工作小组赴汤考察我援外项目
• 汤加国际会议中心正式揭牌
• 汤加会议厅建设项目正式开工剪彩仪式
• 中国政府援建汤加国际会议厅项目换文确认
• Notification No.4, 2006 of Foreign Assistance Project Bid Board of the Ministry of Commerce
• The Designing Contract of Auditorium signed in Tonga
• Tanoa
• China's Overseas Development Finance
• The New Owners of the Janfull International Dateline Hotel
• CONVENTION CENTER OPENS AT TONGA’S DATELINE HOTEL
• Tanoa International Dateline Hotel
• Tonga Statistical Appendix
• 中华人民共和国驻汤加大使馆经济商务参赞处 编辑 上传视频
• International Dateline Hotel, to build up the friendship between China and Tonga
• CONSTRUCTION
• EXPANSION OF TONGA’S INTERNATIONAL DATELINE HOTEL READY TO BEGIN
• China EXIM Bank Signed Contract with the Kingdom of Tonga
• CONTINUING REFORM TO PROMOTE GROWTH
• Facebook Twitter LinkedIn WhatsApp Email Print Go Back Historic Pacific Hotel to Receive a Facelift and Attract Tourist Dollars to Tonga
• Tonga International Dateline Hotel PPP
• IMPLEMENTATION COMPLETION AND RESULTS REPORT
• Tonga’s Record Budget Relies Heavily On Foreign Assistance
• Tonga seeks $60m loan from China to buy back assets
• QUARTERLY DEBT BULLETIN as at 31 March 2014
• Annual Public Debt Bulletin
• Govt retains ownership of Dateline Hotel
• Government of Tonga Budget Statement 2013-2014
• Tonga: Staff Report for the 2014 Article IV Consultation
• TONGA GOVERNMENT WANTS FULL OWNERSHIP OF HOTEL
• CHINESE ASSISTANCE IN THE PACIFIC: AGENCY
• EFFECTIVENESS AND THE ROLE OF PACIFIC ISLAND GOVERNMENTS
• TONGA-CHINA SIGNS T$9 MILLION LOAN AGREEMENT FOR DATELINE HOTEL UPGRADE
• PA 15-16 ENGLISH VERSION
• China in the Pacific: The New Banker in Town
• Chinese Aid in the Pacific 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.