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China Eximbank provides $82.5 million concessional loan for Oudomxay-Pakmong Section of No.13 Road (NR13) Rehabilitation Project (Linked to Record ID#64756 and ID#64757)
| Funder | Export-Import Bank of China (China Eximbank) |
|---|---|
| Recipient Organization | Government of Laos |
| Country | Lao People's Democratic Republic |
| Start Date | Jan 01, 2012 |
| End Date | Jun 27, 2033 |
| Duration | 7,848 days |
| Number of Grantees | 1 |
| Roles | Recipient |
| Data Source | AidData Chinese Aid |
| Grant ID | 38597 |
Grant Description
China Eximbank provides $82.5 million concessional loan for Oudomxay-Pakmong Section of No.13 Road (NR13) Rehabilitation Project In 2012, China Eximbank and the Government of Laos signed a $82.5 million concessional loan for the Oudomxay-Pakmong Section of No. 13 Road (NR13) Rehabilitation Project.
The purpose of the project was to refurbish the 81.65 km north section of the No.13 Road (NR13), which runs from Pak Mong in Luang Prabang Province to Muang Xay in Oudomasay (Oudomxay) Province. The refurbishment involved upgrading the road surface from one with bituminous surface treatment to asphalt concrete.
Yunnan Sunshine Road and Bridge Co., Ltd. and China Railway Third Survey and Design Institute Group Co., Ltd. were the contractors responsible for implementation.
A groundbreaking ceremony was held on March 7, 2014, and the project was officially completed and handed over to the Lao Government on June 20, 2016.
There are multiple indications that the China Eximbank loan for this project may have financially underperformed vis-a-vis the original expectations of the lender. In 2020, the Laotian authorities urgently sought debt relief from China Eximbank.
At that time, the gross reserves of the Bank of Laos stood at only 1.5 months of import cover and credit rating agencies warned of a high default probability.
In 2020, China Eximbank also agreed to reprofile multiple loan agreements that it had previously signed with the Government of Laos (as captured via Record ID#96464).
These debt service payment deferrals lasted for approximately 4-years (2020 and 2023) and provided approximately $1.892 billion of cash flow relief ($1.422 billion in deferred principal payments and $470 million in deferred interest payments). Deferred principal and interest repayments in 2020 were worth $202 million.
Deferred principal and interest payments were worth $426 million in 2021. Deferred principal and interest payments were worth $594 million in 2022. Deferred principal and interest payments were worth $670 million in 2023.
Staff Comments
- The Chinese project title is North Section of the Pak Mong-Oudomxai Road Refurbishment Project, the Muang Xai-Pa Mong Section Rehabilitation Project of Route 13, the Rehabilitation of Muang Xay-Pakmong Section of Road No.13 Project, or Oudomxay–Pakmong Road Rehabilitation Project.
- The Chinese project title 老挝北13号公路孟赛-巴蒙段公路修复项目 or 老挝13号公路巴蒙至勐赛段总承包修复项目.
- 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.
- The Chinese Government also financed the Pakmong-Nateuy Section of No. 13 Road (NR13) Extension Project (as captured via Record ID#64756 and ID#64757).
- According to the World Bank's Debtor Reporting System (DRS), the weighted average grace period of all official sector lending from Chinese creditors to government and government-guaranteed borrowing institutions in Laos was 6.3382-years in 2012. AidData estimates the grace period of the China Eximbank loan that supported the Oudomxay-Pakmong Section of the No.13 Road (NR13) Rehabilitation Project by using this figure. See https://www.dropbox.com/scl/fi/uno1hf2pjg3nfz78h72c6/Private-and-Official-Sector-PRC-Borrowings-and-Borrowing-Terms-of-Lao-PDR-September-2024.xlsx?rlkey=s7eas067aykllu1lik074l5x5&dl=0
Sources & References
- 援老挝北13号公路孟赛—巴蒙段公路修复项目举行开工仪式
- Work begins on the reconstruction of highway 13 North from Pak Mong (Luang Prabang) to Oudomxay
- Laos starts work in major northern link
- Laos Seeks Second Loan From China to Build Northern Road
- Assessment and Prospect of China-Laos Development Cooperation
- 利用我优惠贷款实施的老挝北13号公路孟赛-巴蒙段公路修复项目举行开工仪式
- Regional Investment Framework Pipeline of Potential Projects (2013–2022)
- Governing aid from China through embedded informality: Institutional response to Chinese development aid in Laos
- NR13 Oudomxay-Pakmong (Upgrade)
- Improvements and Challenges Associated with the Facilitation of Road Transport in Lao PDR
- 老挝13号公路巴蒙至勐塞段总承包修复项目
- 老挝13号公路巴蒙至勐赛段总承包修复项目举行开工仪式
- Brief Introduction to TSDI
- 利用我优惠贷款实施的老挝北13号公路孟赛-巴蒙段公路修复
- 利用我优惠贷款实施的老挝北13号公路孟赛-巴蒙段公路修复项目举行开工仪式
- Feature: Chinese road builders help improve lives in Laos
- 铁三院实现海外工程总承包项目重大突破
- Governing aid from China through embedded informality: Institutional response to Chinese development aid in Laos
- 利用我优惠贷款实施的老挝北13号公路孟赛-巴蒙段公路修复项目举行开工仪式Opening ceremony of the renovation of China-loaned Laos north highway No.13 was held
- Laos Seeks Second Loan From China to Build Northern Road 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 Laos
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