Completed Development AidData Chinese Aid

Chinese Government provides RMB 46 million interest-free loan for Sana’a Textile Mill Equipment Upgrading and Renovation Project

¥46M RMB

Funder	China Ministry of Commerce
Recipient Organization	Government of Yemen
Country	Yemen
Start Date	Jan 01, 2004
End Date	Oct 09, 2028
Duration	9,048 days
Number of Grantees	1
Roles	Recipient
Data Source	AidData Chinese Aid
Grant ID	`40999`

Grant Description

Chinese Government provides RMB 46 million interest-free loan for Sana’a Textile Mill Equipment Upgrading and Renovation Project In 2003, China’s Ministry of Commerce (MOFCOM) issued an RMB 46 million ($7.5 million) interest-free loan to the Government of Yemen for the Sana’a Textile Mill Equipment Upgrading and Renovation Project.

The proceeds of the loan were used to finance a commercial contract between Yemen Textile Corporation (a state-owned company) and China CAMC Engineering Co., Ltd. (CAMCE), which was signed on September 18, 2004. The purpose of the project was to upgrade and renovate the equipment of a textile mill in the capital city of Sana’a.

CAMCE, a subsidiary of China National Machinery Industry Corporation (SINOMACH), was the contractor responsible implementation. It delivered the requisite equipment in March 2005.

However, the project subsequently stalled because a supporting set of civil works at the textile mill were not undertaken on schedule. On June 1, 2005, the operations of the textile mill were suspended to facilitate the installation of the equipment.

The employees of the textile mill were granted leave with pay from July 2005 during the equipment installation and textile mill renovation process.

In June 2008, CAMCE dispatched a group of engineers and technicians to Sana'a to oversee the installation and commissioning of the new equipment. MOFCOM also undertook a site inspection on June 28, 2008. Other key components of the project were completed in October 2008.

Trial operations of the new equipment took place in later 2010 and early 2011, and a project handover certificate was issued on or around January 16, 2011. However, the textile mill was plagued by several serious problems following the completion of the project.

The mill became financially insolvent (in part because hundreds of employees were granted leave with pay from July 2005 to October 2016). Also, during a set of Saudi-led airstrikes against Houthi rebels in 2015, the mill was bombed.

📋 Staff Comments

This project is also known as the Sana’a Textile and Spinning Factory Equipment Renovation Project. The Chinese project title is 也门萨那纺织厂设备更新项目 or 也门萨那纺织厂更新改造项目. The Arabic project title is مصنع الغزل والنسيج بصنعاء.
The Sana’a textile mill (factory) was originally constructed with financial assistance from the Chinese Government. The Chinese Government and the Government of Yemen agreed to build the factory in 1958 and construction began in 1964. The factory began production in 1967 under the supervision of Chinese technical experts. The factory later fell into a state of disrepair.
Since the borrowing terms of the interest-free loan are unavailable, AidData has set maturity to 20-years by default and the 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 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

Full aspects installation and commissioning of updated equipment granted by China
也门萨那纺织厂更新改造项目
司马义·铁力瓦尔地视察援也门萨那纺织厂设备更新改造项目
中国政府援也门萨那纺织厂更新设备全面开始安装调试
China to update Sana'a Textile and Spinning Factory
援也门萨那纺织厂设备更新改造项目移交, 2004年及以前
中国援助也门萨那纺织厂项目商务合同正式签署
商务部对外援助项目招标委员会通告【2004】第19号, العلاقات اليمنية - الصينية.. 58 عاماً من العطاء و النجاح .. إلى الشراكة والبناء !!, صحيفة أخبار اليوم- كبد الخزينة العامة للدولة قرابة 7 مليارات والمالية لا تعلم أسباب توقفه.. مصنع الغزل والنسيج .. أنشأته الثورة الأولى فهل يعلن وفاته الثوار الجدد؟!!, موقع ( لا ) الأخباري - إعادة تشغيل أول مصنع في الجزيرة العربية وقلعة الصناعة الأولى باليمن .. الغزل والنسيج.. نصف عودة, بوادر تشير إلى قرب حل مشكلة عمال مصنع نسيج صنعاء - الاقتصادي - البيان, مصنع الغزل والنسيج بصنعاء - ويكيبيديا
中国政府援也门萨那纺织厂更新设备全面开始安装调试
也门萨那纺织厂更新改造项目
Document of The World Bank FOR OFFICIAL USE ONLY Report No. 15241 PROJECT COMPLETION NOTE REPUBLIC OF YEMEN TEXTILE REHABILITATION PROJECT (CREDIT 832-YAR), 'الغزل والنسيج' المصنع اليمني الأول في الجزيرة العربية يعاود الإنتاج - سبأنت - وكالة سبأ
China reschedules Yemeni loan 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 Yemen

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