Completed Development AidData Chinese Aid

China Eximbank provides RMB 68 million government concessional loan for the Y12 Aircrafts Purchase Project (Linked to Record ID#39257)

¥68M RMB

Funder	Export-Import Bank of China (China Eximbank)
Recipient Organization	Vanuatu Ministry of Finance and Economic Management
Country	Vanuatu
Start Date	Mar 29, 2007
End Date	Nov 16, 2033
Duration	9,729 days
Number of Grantees	1
Roles	Recipient
Data Source	AidData Chinese Aid
Grant ID	`39256`

Grant Description

China Eximbank provides RMB 68 million government concessional loan for the Y12 Aircrafts Purchase Project On March 29, 2007, the Government of the People's Republic of China and the Government of the Republic of Vanuatu entered into a Framework Agreement on Provision of Government Concessional Loans by China to Vanuatu.

On the same day (March 29, 2007), China Eximbank and the Government of the Republic of Vanuatu (represented by the Ministry of Finance and Economic Management) signed an RMB 68 million ($9.78 million) government concessional loan (GCL) agreement [CHINA EXIMBANK GCL NO. (2007) 7 TOTAL NO. (178)] for the Vanuatu Y12 Aircrafts Purchase Project.

📋 Loan / Grant Terms

📅 Maturity20 years

⏳ Grace Period5 years

💹 Interest Rate2%

Vanuatu’s Ministry of Finance and Economic Management on-lent the proceeds of the GCL to Air Vanuatu (Operations) Limited (“Air Vanuatu”), a state-owned airline. The ultimate borrower (end-user) then used the proceeds of the GCL to finance a commercial contract [NO.

ATE/VAN/06M0220] between Air Vanuatu and China National Aero-Technology Import and Export Corporation (CATIC), which was signed on September 28, 2006. The purpose of this project was to acquire two Y12 (Y-12) aircraft for use in Air Vanuatu’s fleet. Both aircraft were officially delivered and handed over to the local authorities on December 18, 2008.

The loan that China Eximbank issued was part of a “buy two get one free deal” in which the Chinese Government donated a third Y12 aircraft (worth $4.89 million).

A Chinese Government delegation handed over an airworthiness certificate for the third Y12 aircraft to the Vanuatu Government in January 2009.

Then, in 2014, Vanuatu’s Minister of Finance and Economic Management reported to Parliament that one Y12 was in use in Vanuatu, another was in disuse, and a third had been leased to the Tongan Government.

The RMB 68 million loan from China Eximbank loan is captured in Record ID#39256 and $4.89 million Chinese Government grant is captured in Record ID#39257.

📋 Staff Comments

The China Eximbank loan that supported this project is not included in the Chinese Overseas Development Finance Dataset published by Boston University’s Global Development Policy Center in December 2020.
The China Eximbank loan agreement can be accessed in its entirety via https://www.documentcloud.org/documents/20488911-vut_2007_450.
In source 35365, the following is detailed: 'An advance of 1 billion vatu was made to Air Vanuatu in 2008 for the purchase of Y12 Aircraftfrom China. The purchase of these aircraft was funded by a loan from the ChineseGovernment which has been on-lent to Air Vanuatu. This loan was made in Chinese YuanRenminbi and has since been revalued to 856 million vatu as at 31 December 2010. Anamount of 856 million vatu is therefore shown as a liability in borrowings and an asset inadvances to Air Vanuatu. The remaining advance balance for Air Vanuatu representadditional loan advances given to the airline in recent years. 'This infers that the first data point for the 2008 being inaccurate, as the project/loan has been revalued.

📚 Sources & References

CHINA GIVES TWO AIRPLANES TO VANUATU
China Overseas Development Finance
CHINA TO SEND 3 COMMERCIAL AIRCRAFT TO VANUATU
Chinese Aid in the Pacific
CHINESE ASSISTANCE IN THE PACIFIC: AGENCY
EFFECTIVENESS AND THE ROLE OF PACIFIC ISLAND GOVERNMENTS
CONCESSIONAL LOAN AGREEMENT BETWEEN THE GOVERNMENT OF THE REPUBLIC OF VANUATU AND THE EXPORT-IMPORT BANK OF CHINA FOR THE PURCHASE OF Y12 AIRCRAFTS
DG
Leader of Vanuatu Delegation- Trade
Tourism and Investment Forum China-Pacific Cooperation
Xiamen City
Financial Statements of the Government of The Republic of Vanuatu
FINANCIAL STATEMENTS OF THE GOVERNMENT OF THE REPUBLIC OF VANUATU (2010)
FINANCIAL STATEMENTS OF THE GOVERNMENT OF THE REPUBLIC OF VANUATU (2011)
FINANCIAL STATEMENTS OF THE GOVERNMENT OF THE REPUBLIC OF VANUATU (2012)
FINANCIAL STATEMENTSOF THEGOVERNMENT OFTHE REPUBLIC OF VANUATU 2010
FINANCIAL STATEMENTSOF THEGOVERNMENT OFTHE REPUBLIC OF VANUATU FOR 2013
I am supporting the Vanuatu Yun 12 aircraft to become an important force in the domestic shipping of the Wa
Remarks by Marokon Alilee
Director General of Ministry of Trade
Commerce and Tourism of Vanuatu at the Investment,Trade and Tourism Ministerial Conference of the China-Pacific Island Countries Economic Development and Cooperation Forum
Republic of Vanuatu Public Financial Management Performance Measurement Report
TENTH LEGISLATURE THIRD EXTRAORDINARYSESSION OF 2014 28 JULY-4A UGUST 2014
The age of choice: Fiji and Vanuatu in the new aid landscape
THE CONCESSIONAL LOAN AGREEMENT BETWEEN THE GOVERNMENT OF THE REPUBLIC OF VANUATU AND THE EXPORT-IMPORT BANK OF CHINA FOR THE PURCHASE OF Y12 AIRCRAFTS (RATIFICATION) ACT NO. 22 OF 2009
The Dragon Looks South
Vanuatu Whole of Government Financial Statements 2014
Vanuatu Whole of Government Financial Statements 2015
Vanuatu Whole of Government Financial Statements 2016
Vanuatu Whole of Government Financial Statements 2017
我国产运12飞机交付瓦努阿图方使用
我国产运12飞机交付瓦努阿图方使用
瓦努阿图总理出席运12飞机交接仪式 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.