Active Development AidData Chinese Aid

Chinese government grants Government of Ecuador 25 million RMB through March 2002 ETCA (Linked to Record ID#37812, #87913, and #35773)

¥25M RMB

Funder	China Ministry of Commerce
Recipient Organization	Government of Ecuador
Country	Ecuador
Start Date	Mar 20, 2002
End Date	Feb 03, 2028
Duration	9,451 days
Number of Grantees	1
Roles	Recipient
Data Source	AidData Chinese Aid
Grant ID	`39424`

Grant Description

On March 20, 2002, representatives of the governments of China and Ecuador signed an Economic and Technical Cooperation Agreement (ETCA) that granted 25 million RMB (or about 3 million USD) to the government of Ecuador. The agreement was signed in Beijing, during a six day visit to China by the President of Ecuador.

Banking procedures were to be handled by the Central Bank of Ecuador and the Bank of China.

Originally, the President of Ecuador indicated funds from the ETCA would be used for emergency projects following severe flooding.

However, in Letters of Exchange signed on August 16, 2004, the two governments agreed to use between 24.65 million RMB and 25 million RMB to help fund a grant of sports equipment to primary and secondary schools, captured in Record ID#37812.

In total, the portion of the sports equipment project funded by this grant was worth 39.23 million RMB, and was additionally funded by the ETCA signed August 26, 2003 (see Record ID#35773) and Letters of Exchange signed November 28, 2002 (see Record ID#87913).

Adding the available amounts provided in these agreements (10 million and 4.58 million RMB respectively) to the 25 million RMB from this ETCA results in a total of 39.58 million RMB.

This is 350,000 RMB above the amount that went to the sports equipment project (39.58 million - 39.23 million = 350,000), indicating 350,000 RMB of either this grant, or one of the other two grants that funded this 39.23 million, was used for (an) additional subproject(s).

📋 Staff Comments

Assumption made that 3 million USD 'emergency aid' described in the media reports linked (for example, 'Ecuador president concludes visit to China [Corrected 03/24/02]') is the same grant provided in the ETCA signed on March 20, 2002. This is because the historic exchange rate between USD and RMB (1:8.28) indicates 3 million USD is worth approximately 25 million RMB (24.84 million RMB, more precisely). Further, the ETCA was signed in Beijing (per the text of the document) and on the President of Ecuador's trip (see '江泽民同厄瓜多尔总统诺沃亚举行会谈'), as was the 3 million USD grant. While it is possible that two grants of approximately the same amount were provided on this trip, given (1) the similarities in transaction amount and (2) the inability to find evidence of two separate grants within the same source, it appears safe to assume they are the same grant. While the reporting that the 3 million USD was to be used for emergency aid projects is reason to be skeptical of this assumption (given that the text of the ETCA itself leaves the projects to be funded by it unspecified at the time of signing, and the eventual usage for sports equipment), due to the uncertainty of officials regarding which emergency projects in particular would be funded (see 'Ecuador president concludes visit to China [Corrected 03/24/02],' for example), it seems entirely possible plans for the grant changed.This ETCA is coded separately as an umbrella project because it is possible that part of it was used to fund (an) additional sub-project(s) (up to 350,000 RMB) that is currently unaccounted for.

📚 Sources & References

2005 Registero Oficial
ANÁLISIS CULTURAL Y POLÍTICO DE ECUADOR Y CHINA Y SU INFLUENCIA EN EL COMERCIO BILATERAL EN EL PERIODO 2000 – 2006
China finances US$40mn bridge contract in Manabi.
China pledges 43 mln dlrs in loan and aid to Ecuador
CONVENIO DE COOPERACION ECONOMICA Y TECNICA ENTRE EL GOBIERNO DE LA REPUBLICA DEL ECUADOR Y EL GOBIERNO DE LA REPUBLICA POPULAR CHINA
Ecuador president concludes visit to China [Corrected 03/24/02]
Ecuador/China.-Noboa gestiona con China un crédito de 40 millones de dólares para la reconstrucción ...
江泽民同厄瓜多尔总统诺沃亚举行会谈 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.