China Eximbank provides RMB 455.6 million government concessional loan for the China-Maldives Friendship Bridge Construction Project (Linked to Record ID#38082, 54278. 95441, 95443, 97751)

China Eximbank provides RMB 455.6 million government concessional loan for the China-Maldives Friendship Bridge Construction Project During former President of the Maldives Maumoon Abdul Gayoom’s reelection campaign in 2008, he announced that his government would build a bridge from Malé to Hulhulé.

Then, during Xi Jinping's September 2014 state visit to the Maldives, Xi suggested that the bridge would be called ‘the China-Maldives Friendship Bridge'. He also conveyed the Chinese Government’s interest in financing the construction of the bridge. On December 2, 2014, the Chinese and Maldivian governments signed an MOU for the project’s pre-feasibility study.

Then, on July 9, 2015, the Chinese and Maldivian governments signed additional MoUs related to the project. The total cost of the project of the project was approximately RMB 1.26 billion ($222.4 million).

It was financed with an RMB 724,500,000 ($126 million) grant from China’s Ministry of Commerce, an RMB 455,600,000 loan from China Eximbank, and 80,640,000 ($12.6 million) from the Maldivian state budget.

On July 14, 2016, China Eximbank and the Government of the Maldives signed an RMB 455,600,000 government concessional loan (GCL) agreement for the Sinamalé Bridge (China-Maldives Friendship Bridge) Construction Project.

MOFCOM separately issued a grant to the Government of the Maldives worth approximately RMB 724,500,000 (captured via Record ID#38082).

The Government of the Maldives was expected to use the loan and grant proceeds to finance a $210 million commercial contract that it signed with CCCC Second Harbor Engineering Company Ltd. on November 23, 2015.

CCCC Second Harbor Engineering Company Ltd. was sanctioned in 2009 and barred from engaging in any road and bridge projects financed by the World Bank Group until January 2017. China Eximbank made loan disbursements worth MVR 262,449,478 in 2016 and MVR 261,058,800 in 2017. The loan had achieved a 100% disbursement rate (RMB 455,600,000 out of RMB 455,600,000) as of December 31, 2019.

The borrower did not make any repayments to China Eximbank during calendar year 2020 or calendar year 2021.

It did make repayments to China Eximbank worth RMB 30,373,332 during calendar year 2022 and RMB 30,373,332 during calendar year 2023.

The loan's amount outstanding was RMB 455,600,000 as of December 31, 2019, RMB 455,600,000 as of December 31, 2020, RMB 440,413,333 as of December 31, 2021, RMB 410,040,001 as of December 31, 2022, and RMB 379,666,669 as of December 31, 2023.

The purpose of the project was to construct Sinamalé Bridge (‘the China-Maldives Friendship Bridge') in order to link the islands of Malé, Hulhulé and Hulhumalé (through Hulhulé') in the Maldives. The bridge also sought to connect the international airport to the capital city of Malé. The bridge is 2,000 meters long, of which 1,390 meters consists of a cross-sea bridge.

It is 20 meters in width. The 760-meter long main bridge is a six-span steel tube-reinforced hybrid girder V-shaped rigid frame bridge.

The whole bridge contains six deck closure sections, including three concrete girder deck closure sections and three steel box girder closure sections. The project required a total of 460 tons of 316L stainless steel plate embedded parts. The bridge 2 lanes for four-wheeled drives, 2 lanes for motorcycles, 1 lane for bicycles, and 1 lane for pedestrians.

CCCC Second Harbor Engineering Company Ltd. was the contractor responsible for project implementation. The project was originally scheduled to commence on December 25, 2015 and reach completion on August 30, 2018.

Work on the bridge's foundation was original scheduled to commence on March 1, 2017, and work on the bridge's superstructure was originally scheduled to begin on April 23, 2017. Construction actually began on February 25, 2016 and the bridge was completed in July 2018. The bridge was officially inaugurated on August 30, 2018.

It was then officially handed over to the Government of the Maldives on November 12, 2018.

Sinamalé Bridge, which is the first inter-island bridge in the Maldives, has reportedly reduced commuting times significantly. Prior to the completion of the project, commuters had to endure rough seas and delays in ferry services. The project is considered an iconic landmark of the Belt and Road Initiative and the Maritime Silk Road.

There are some indications that the China Eximbank loan for the China-Maldives Friendship Bridge Construction Project has financially underperformed vis-a-vis the original expectations of the lender.

In May 2020, the China Eximbank government concessional loans for the 1,000 Unit Housing Development Project in Hulhumalé (captured via Record ID#34996), Phase 2 of the 1,500 Housing Units Development Project (captured via Record ID#35020), and the China-Maldives Friendship Bridge Construction Project (captured via Record ID#38037) were restructured through the G-20 Debt Service Suspension Initiative (DSSI).

Debt service payments under the three loans were deferred until December 31, 2020 and the outstanding balances of the loans were transferred to a new China Eximbank loan instrument along with the capitalization of accrued interest (as captured via Record ID#95443).

Debt service payments under the three loans were again deferred from January 1, 2021 to June 30, 2021 and the outstanding balances of the loans were again transferred to a second, new China Eximbank loan instrument along with the capitalization of accrued interest (as captured via Record ID#95441).

Debt service payments were deferred yet again under the three loans from July 1, 2021 to December 31, 2021 and the outstanding balances of the loans was again transferred to a third, new China Eximbank loan instrument along with the capitalization of accrued interest (as captured via Record ID#97751).

The amount outstanding under the first, new China Eximbank loan instrument was RMB 69,163,650 as of December 31, 2021 and RMB 46,109,100 as of December 31, 2022 (after the borrower made repayments worth RMB 23,054,550 in 2022).

The amount outstanding under the second, new China Eximbank loan instrument was RMB 68,467,299 as of December 31, 2021 and RMB 61,620,569 as of December 31, 2022 (after the borrower made repayments worth RMB 6,846,730 in 2022).

The amount outstanding under the third, new China Eximbank loan instrument was RMB 83,443,100 as of December 31, 2021 and RMB 83,443,100 as of December 31, 2022 (after the borrower made no repayments in 2022).