Completed Development AidData Chinese Aid

Chinese Government provide RMB 20 million interest-free loan — via ETCA — for Melanesian Spearhead Group Headquarters Building Construction Project (Linked to Record ID#39258, #62571)

¥20M RMB

Funder	China Ministry of Commerce
Recipient Organization	Government of Vanuatu
Country	Vanuatu
Start Date	Apr 07, 2006
End Date	Jul 21, 2026
Duration	7,410 days
Number of Grantees	1
Roles	Recipient
Data Source	AidData Chinese Aid
Grant ID	`39210`

Grant Description

Chinese Government provide RMB 20 million interest-free loan — via ETCA — for Melanesian Spearhead Group Headquarters Building Construction Project On August 7, 2004, the Chinese Government and the Government of the Republic of Vanuatu signed an Economic and Technical Cooperation Agreement (ETCA), which committed an RMB 20 million (VUV 214 million) interest-free loan for an unspecified purpose.

Then, on April 7, 2006, the Chinese Government and the Government of the Republic of Vanuatu signed letters of exchange and agreed to use the proceeds of the interest-free loan for the Melanesian Spearhead Group Headquarters Building Construction Project. The loan’s repayment period was scheduled to begin in December 2015.

The purpose of this project was to construct a building to house the Melanesian Spearhead Group (MSG) secretariat in the city of Port Vila on behalf of the MSG member countries. Ningbo Construction Group was the contractor responsible for implementation. Construction began on January 22, 2007 and ended on September 20, 2007.

A formal project handover ceremony was held on October 31, 2007. The building was officially inaugurated in May 2008.

Then, on November 9, 2018, the Chinese Government and the Government of the Republic of Vanuatu signed a partial debt exemption protocol, which relieved the Government of the Republic of Vanuatu of its loan repayment obligations under the August 7, 2004 ETCA (captured in Record ID#62571).

According to reporting in the Vanuatu Daily Post, officials from Vanuatu’s Ministry of Finance and Economic Management believed that the Melanesian Spearhead Group Headquarters Building Construction Project was financed with a grant that did not need to be repaid.

📋 Staff Comments

The Chinese project title is 美拉尼西亚先锋集团办公楼 or 美拉尼西亚先锋集团（MSG）秘书处办公楼项目.
There are some indications that Ningbo Construction Group may have also used some of the loan proceeds from the August 7, 2004 ETCA to build housing for the Chinese medical team in Vanuatu (See Project ID#39258).
This record has been marked as having evidence of financial distress because it was subject to debt forgiveness captured in record #62571.
The November 9, 2018 debt exemption protocol can be accessed in its entirety via https://www.dropbox.com/sh/yslxk77s3e8ewsi/AABkl3dmQoUZhX6UEFyBWIZ-a?dl=0&preview=China_Protocol+on+remitting+partial+debt_09112018.pdf.
Since loan terms for the interest-free loan are unavailable, AidData has set maturity period to 20-years by default and grace period to 10-years by default per China's Foreign Assistance White Paper (http://www.cidca.gov.cn/2018-08/06/c_129925064_3.htm) which states that the maturity period of interest-free loans is 20-years, with a drawdown period of 5-years, grace period of 5-years, and repayment over 10-years. AidData treats the drawdown period as providing 5-years of additional grace.

📚 Sources & References

08 Jun 2012 - China Special Envoy to the Pacific Islands Forum Dialogue visits MSG Secretariat
中国驻瓦努阿图大使程树平出席援瓦美拉尼西亚先锋集团秘书处办公楼项目交接仪式
From China with love
China forgives overdue debt Vanuatu thought was gift
Agreement 'Remitting partial debt'
Current location: Home > Business News The handover ceremony of the office building project of the Secretariat of the Venezuela Pioneer Group was held in Port Vila.
Chinese funding
CHINA
VANUATU SIGN AGREEMENTS
瓦努阿图与亚洲国家的关系
美拉尼西亚先锋集团（MSG）秘书处办公楼项目内部验收组访瓦
援瓦美拉尼西亚先锋集团秘书处办公楼项目交接仪式在维拉港举行
驻瓦努阿图大使谢波华出席美拉尼西亚先锋集团银禧庆典活动
China Protocol on remitting partial debt
驻瓦努阿图大使谢波华出席美拉尼西亚先锋集团银禧庆典活动
援瓦努阿图美拉尼西亚先锋集团秘书处办公楼项目举行对外交接仪式
Financial Statements of the Government of the Republic of Vanuatu
Quarterly Economic Review December 2007
商务部关于请为援瓦努阿图美拉尼西亚先锋集团办公楼和中国医疗队宿舍项目派遣设计代表人员的通知
The Dragon looks South
Protocol on Remitting Partial Debt of the Vanuatu Government between the Government of the People's Republic of China and the Government of the Republic of Vanuatu
Lowy Institute Pacific Aid Map
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.

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Government of Vanuatu

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