Completed Development AidData Chinese Aid

China Eximbank provides RMB 117.7 million government concessional loan for Rarotonga Water Ring Main Upgrade Project

¥117.7M RMB

Funder	Export-Import Bank of China (China Eximbank)
Recipient Organization	Government of Cook Islands
Country	Cook Islands
Start Date	Dec 01, 2012
End Date	May 12, 2030
Duration	6,371 days
Number of Grantees	1
Roles	Recipient
Data Source	AidData Chinese Aid
Grant ID	`38181`

Grant Description

China Eximbank provides RMB 117.7 million government concessional loan for Rarotonga Water Ring Main Upgrade Project On August 30, 2012, China, New Zealand, and the Cook Islands jointly announced the ‘Cook Islands Water Partnership’—locally known as Te Mato Vai—at the Pacific Islands Forum. This tripartite initiative aimed to upgrade Rarotonga’s aging water supply network.

The announcement was made in a joint statement by China’s Vice Foreign Minister Cui, Cook Islands Prime Minister Henry Puna, and New Zealand Prime Minister John Key. In December 2012, China Eximbank and the Government of the Cook Islands signed an RMB 117.7 million (approx. USD 18.7 million or NZD 22.8 million) government concessional loan (GCL) agreement to support the project.

📋 Loan / Grant Terms

📅 Maturity20 years

⏳ Grace Period5 years

💹 Interest Rate2%

The final maturity date of the loan is December 2032.

According to financial statements, the outstanding amount was RMB 24.64 million as of September 2019 and RMB 22.59 million as of December 2019.

The purpose of Te Mato Vai was to deliver potable water to Rarotonga’s residents by laying 26 kilometers of new ring mains and upgrading key water intakes. The project was implemented in two main stages.

Stage 1 began on February 20, 2014, and focused on replacing the island’s inner and outer water ring mains and connecting them to the existing network.

This work, carried out by China Civil Engineering Construction Corporation (CCECC), was completed in December 2016 and followed by a 12-month defect liability period.

Testing was conducted by Opus International Consultants Ltd., and CCECC agreed to remediate any deficiencies at its own cost. The project was formally handed over to local authorities on February 16, 2017.

Stage 2, which began in 2018, involved the upgrade of 10 existing water intakes across the island and was implemented by McConnell Dowell in collaboration with local contractors.

This second phase faced challenges, including complex negotiations with landowners across 10 intake sites, which were resolved with their eventual support for community development.

On October 24, 2023, the project was officially declared complete at a landowner recognition ceremony for the new Papua water intake in Vaimaanga.

Prime Minister Mark Brown hailed Te Mato Vai as a “historic” initiative—the largest infrastructure project undertaken by the Cook Islands since the construction of the Rarotonga International Airport.

The total project cost reached approximately NZD 90 million and was jointly funded by China, New Zealand, and the Cook Islands Government.

The Papua intake, one of the final components, had already been operational for six months prior to the handover, undergoing extensive testing including over 10,000 environmental and quality assessments.

Moving forward, management of the upgraded water infrastructure will be overseen by the newly established To Tatou Vai Authority.

📋 Staff Comments

This project is also known as the Te Mato Vai-Rarotonga Water Ring Main Upgrade Project. The Chinese project tittle is 中方援建库克群岛供水项目 or 库克群岛供水项目 or 拉罗汤加岛上的供水管道升级改造项目.
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.

📚 Sources & References

China,Cook Islands,New Zealand : PM JOHN KEY welcomes a new partnership between the COOK ISLAND
CHINA and NEW ZEALAND to deliver better water mains system in RAROTONGAommon development: Chinese vice FM
NZ
China and Cook Islands work to improve water quality
Cook Islands drives world-first NZ-China aid project
China-NZ aid project in Cooks shaping up as model for region
Te Mato Vai supervisor in the Cooks Islands defends project
NZ
China and Cook Islands work to improve water quality
China–New Zealand–Cook Islands Triangular Aid Project on Water Supply
The Tripartite Cook Islands/ China/New Zealand Water Project in the Cook Islands – A New Zealand perspective
CHINESE ASSISTANCE IN THE PACIFIC: AGENCY
EFFECTIVENESS AND THE ROLE OF PACIFIC ISLAND GOVERNMENTS
China-NZ joint Pacific aid project targets water in Cook Islands
China
New Zealand to aid water development project in Cook Islands
Te Mato Vai Pipeline
Te Mato Vai now in full flow
MINISTRY OF FINANCE AND ECONOMIC MANAGEMENT Cook Islands Debts
Cook Islands Government Quarterly Financial Report 31 December 2018
中国同库克群岛的关系
The Cook Islands 2014/2015 Budget Policy Statement and 2013/2014 Half Year Economic and Fiscal Update
Govt drops Te Mato Vai bombshell
A Promising New Trend? Factors Driving China’s Growing Trilateral Aid Cooperation, 2015 Cook Islands National Infrastructure Investment Plan
Te Mato Vai Cook Islands-China and NZ Delivering Water to Rarotonga
Ambassador Wang Lutong attended Tripartite Water Project Launching Ceremony in the Cook Islands
张帆参赞与库方谈供水项目三方合作
Government Contract Awards Notifications
Contract awarded for Cook Islands water upgrade
Contract awarded for Cook Islands water upgrade
Initiative With Add-ons
China likely to team up more on aid to Pacific
Chinese take cautious approach to trilateral aid
Mounting costs to a major water project and the prospect of expensive, legal...
US, allies distort China in South Pacific
The Tripartite Cook Islands/ China/New Zealand Water Project in the Cook Islands – A New Zealand perspective
Bishop tries to calm row over China aid
TE MATO VAI – MASTER PLANNING A POTABLE WATER SUPPLY FOR RAROTONGA
COOK ISLANDS'Institute of Public Works Engineering Australasia
China in the Pacific: The New Banker in Town
Contract Awards Notifications
Loan Repayment Fund Report
Quarterly Financial Results
Handover Ceremony of China-aided Cook Islands Water Supply Project Held
China's participation in the Cook Islands water supply project starts
China's Overseas Development Finance, 'Xikedao' Cook Islands 'Proving Ground': Chinese companies invest in island countries to adapt to 'internationalization'
Cook Islands Government Budget Estimates 2016/2017
Sanitation in the Cook Islands Three Year Plan 2013-2016
A Development Process of PPP Scheme
Te Mato Vai Cook Islands‐China and NZ Delivering Water to Rarotonga
Chinese Aid in the Pacific
Cook Islands Medium - Term Debt Management Strategy 2022 - 2026
Vice Foreign Minister Ma Zhaoxu visits Cook Islands
Vice Foreign Minister Ma Zhaoxu visits Cook Islands
Media Release: Prime Minister Mark Brown hosts visit by Executive Vice Foreign Minister Ma of the People’s Republic of China 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.