Completed Development AidData Chinese Aid

China Eximbank provides RMB 340 million government concessional loan for Faleolo International Airport Upgrade Project (Linked to Record ID#96220, #96219)

¥340M RMB

Funder	Export-Import Bank of China (China Eximbank)
Recipient Organization	Government of Samoa
Country	Samoa
Start Date	Nov 01, 2014
End Date	Sep 08, 2028
Duration	5,060 days
Number of Grantees	1
Roles	Recipient
Data Source	AidData Chinese Aid
Grant ID	`46883`

Grant Description

China Eximbank provides RMB 340 million government concessional loan for Faleolo International Airport Upgrade Project In November 2014, China Eximbank and the Government of Samoa signed an RMB 340 million ($55,344,069.60) government concessional loan (GCL) agreement for the Faleolo International Airport (APW) Upgrade Project.

📋 Loan / Grant Terms

📅 Maturity20.33 years

⏳ Grace Period5.33 years

💹 Interest Rate2%

The borrower was expected to use the proceeds of the GCL to finance an RMB 340 million commercial (EPC) contract with Shanghai Construction Group (SCG).

The lender made disbursements worth WST 33,418,803 between between July 1, 2014 and June 30, 2015, WST 59,500,000 between between July 1, 2015 and June 30, 2016, WST 90,949,061 between between July 1, 2016 and June 30, 2017, WST 127,135,186 between between July 1, 2017 and June 30, 2018, and WST 128,987,342 between between July 1, 2018 and June 30, 2019.

The loan's undrawn (undisbursed) balance was WST 34,671,189 as of June 30, 2017, WST 6,130,208 as of June 30, 2018, and WST 1,071,069 as of June 30, 2019.

The borrower made no principal repayments between July 1, 2016 and June 30, 2017, no principal repayments between July 1, 2017 and June 30, 2018, no principal repayments between July 1, 2018 and June 30, 2019, principal repayments worth WST 4,378,594 between July 1, 2019 and June 30, 2020, and no principal repayments between July 1, 2020 and June 30, 2021.

The loan's amount outstanding WST 0 as of June 30, 2014, WST 33,418,803 as of June 30, 2015, WST 59,500,000 as of June 30, 2016, WST 90,949,061 as of June 30, 2017, WST 127,135,186 as of June 30, 2018, WST 128,987,342 as of June 30, 2019, WST 124,488,667 as of June 30, 2020 and WST 121,732,890 as of June 30, 2021.

The purpose of the project was to make improvements to Faleolo International Airport, which is located 40 kilometers west of Apia, the capital of Samoa (exact locational coordinates: -13.829722, -172.008333).

It involved three primary tasks: (1) rehabilitation and resurfacing of existing airport pavements and upgrade of apron and taxiways including associated drainage works; (2) upgrading the existing terminal building; and (3) upgrading navigational aids and lighting.

Upon completion, the upgraded airport was expected to have the capacity to serve 600,000 passengers a year or 200 passengers per hour. Shanghai Construction Group (SCG) was the general contractor responsible for implementation.

Its Samoan subcontractors included the OTT Construction Company, Silva Transportation Co., Ltd, T&N Tolea Afia Co., Ltd, and Apia Cement Products Co., Ltd. The project was implemented in three phases. The groundbreaking ceremony for Phase 1 (the Departure Lounge) took place on July 22, 2015. However, construction did not begin until November 2015.

Phase 1 was officially completed and handed over to the Samoan Government on November 30, 2016.

As part of Phase 2, the airport’s Training and Emergency Operations Center and Mechanical Workshop were officially inaugurated on March 16, 2018. Phase 2 as a whole, which also involved the upgrading of the arrival area, was officially completed on May 10, 2018. Phase 3 involved the installation of the three new Aerobridges and it was officially completed on May 28, 2019.

The Faleolo International Airport Upgrade Project was a target of criticism and controversy prior to its implementation.

A World Bank report concluded that “[t]here was no economic analysis of this [project], it did not meet Samoa’s own procurement requirements and it contravened the agreed borrowing cost indicator included in the [World Bank’s development policy loan agreement with the Government of Samoa]. In the [World] Bank’s technical view the project is over-scaled and runs a high risk of being a white elephant.

The financial analysis carried out by the Samoa Air Authority indicates that the terminal is not financially viable.

The [China Eximbank] loan is [worth] 7.5 percent of GNP.” The World Bank subsequently decided to provide parallel financing and analytical and advisory assistance for the project.

There are also some indications that the China Eximbank loan for the Faleolo International Airport Upgrade Project has financially underperformed vis-a-vis the original expectations of the lender.

In 2020, as part of G20's Debt Service Suspension Initiative (DSSI), China Eximbank and the Government of Samoa signed a debt suspension agreement.

Under the terms of the agreement, the lender agreed to suspend principal and interest payments due between May 1, 2020 and December 31, 2020 under multiple loan agreements, including the loan agreement for the Faleolo International Airport Upgrade Project. The total estimated suspension amount is $21,906,085.

Then, in 2021, China Eximbank and the Government of Samoa signed another debt suspension agreement.

Under the terms of the agreement, the lender agreed to suspend principal and interest payments due in 2021 under multiple loan agreements, including the loan agreement for the Faleolo International Airport Upgrade Project.

The total estimated suspension amount was $16,436,000 ($13,506,000 in principal payments and $2,929,000 in interest payments). The 2020 debt rescheduling is captured via Record ID#96220. The 2021 debt rescheduling is captured via Record ID#96219.

📋 Staff Comments

This project is also known as the Faleolo International Airport Terminal Building Upgrade Project. The Chinese project title is 萨摩亚国际机场升级改造项目 or 萨摩亚法莱奥诺国际机场升级改造项目 or 萨摩亚法莱奥洛国际机场升级改造项目.
The Government of Samoa loan identification number for this project is 2014001.
The borrowing terms of the loan (20.33-year maturity, 5.33-year grace period, 2% interest rate) are drawn from the World Bank's Debtor Reporting System (DRS): https://www.dropbox.com/s/ab8qt4n6jijcbhd/IDS_Average%20interest%20on%20new%20external%20debt%20commitments.xlsx?dl=0 and https://www.dropbox.com/s/949n5rctiue6d7c/IDS_Average_grace_period_and_maturity_on_new_external_debt_commitments.xlsx?dl=04. The amounts outstanding and repayments data are drawn from the annual Public Accounts of Samoa’s Ministry of Finance: https://www.dropbox.com/s/mqx2n1f5zvzh1l0/Public-Accounts-2014.pdf?dl=0 and https://www.dropbox.com/s/p93si5mz4lpapns/Public-Accounts-2015.pdf?dl=0 and https://www.dropbox.com/s/fye48g5n4yylqgk/Public-Accounts-2016.pdf?dl=0 and https://www.dropbox.com/s/hm8oorga2sqi9na/Public-Account-FY-2017.pdf?dl=0 and https://www.dropbox.com/s/n6miez702ndycis/Public-Accounts-2018.pdf?dl=0 and https://www.dropbox.com/s/1kh3a47s4i2oh3r/Public-Accounts-2019-.pdf?dl=0 and https://www.dropbox.com/s/3i4r1bd0ctjlumo/Public-Accounts-2020.pdf?dl=0 and https://www.dropbox.com/s/jt0expsqan3uy2n/Public-Accounts-2021.pdf?dl=0

📚 Sources & References

Faleolo International Airport upgrade
Remarks by Ambassador Wang Xuefeng at Official Opening of Phase 1 for New Terminal (Departure Lounge)
Samoa opens part of new Faleolo terminal
Pacific Aviation Investment Programme (PAIP) - Samoa
PROJECT PAPER ON A PROPOSED ADDITIONAL CREDIT IN THE AMOUNT OF SDR12.10 MILLION (US$ 16.62 MILLION EQUIVALENT) TO THE INDEPENDENT STATE OF SAMOA AND PROJECT RESTRUCTURING FOR THE SAMOA AVIATION INVESTMENT PROJECT
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Quarterly Public Debt Bulletin
Speech of Ambassador Wang Xuefeng
Samoa, at the Completion Ceremony of the First Phase of the Upgrade of Valeo International Airport
Wang Xuefeng
Ambassador of Samoa
Attends the Completion Ceremony of the First Phase of the Upgrade Project of Valeo International Airport
Address by Ambassador Wang Xuefeng at Samoa at the Completion Ceremony of the Second Phase of the Upgrade and Reconstruction of Valeo Oro International Airport
Ambassador to Samoa Wang Xuefeng announced Chinese aid projects in the Samoa Observer
Ambassador Wang Xuefeng's speech at the completion ceremony of the training and emergency command center and repair station of Valeo Oro International Airport
Ambassador to Samoa Wang Xuefeng inspects the upgrade project of Valeo Oro International Airport
Proposed Programmatic Approach and PolicyBased Grant for Subprogram 1 Independent State of Samoa: Fiscal Resilience Improvement Program
INTERNATIONAL DEVELOPMENT ASSOCIATION PROJECT PAPER ON A PROPOSED ADDITIONAL CREDIT IN THE AMOUNT OF SDR12.10 MILLION (US$ 16.62 MILLION EQUIVALENT) TO THE INDEPENDENT STATE OF SAMOA AND PROJECT RESTRUCTURING FOR THE SAMOA AVIATION INVESTMENT PROJECT
SAMOA STAFF REPORT FOR THE 2015 ARTICLE IV CONSULTATION —DEBT SUSTAINABILITY ANALYSIS
Ambassador Wang Xuefeng attends Grand Opening of Phase 2 of New Faleolo International Airport
Ministry of Finance Annual Report 2004-2015
Interview: China-proposed Belt and Road Initiative provides opportunities for South Pacific island nations: Samoan PM
DIAGNOSTIC TRADE INTEGRATION STUDY
Infrastructure Financing Strategies for Sustainable Development in Samoa
Samoa’s $140million International Gateway
PM Interview
Remarks by Ambassador Wang Xuefeng at Official Opening of Phase 1 for New Terminal (Departure Lounge)
Public Accounts for the Financial Year Ended 30th June 2015
Public Accounts for the Financial Year Ended 30th June 2019
Public Accounts for the Financial Year Ended 30th June 2018
Public Accounts for the Financial Year Ended 30th June 2017
PUBLIC ACCOUNTS FOR THE FINANCIAL YEAR ENDED 30 JUNE 2016
Chinese Aid In the Pacific (Map)
Samoa Airport Authority Annual Report
Samoa Airport Authority Annual Report 2019
Ambassador Wang Xuefeng Attends Official Opening of Phase One of Faleolo International Airport (Departure Lounge)
AIRPORT'S $3 MILLION FACILITY OPENED
Faleolo International Airport upgrade
INTERNATIONAL DEVELOPMENT ASSOCIATION PROJECT PAPER ON A PROPOSED ADDITIONAL CREDIT IN THE AMOUNT OF SDR12.10 MILLION (US$ 16.62 MILLION EQUIVALENT) TO THE INDEPENDENT STATE OF SAMOA AND PROJECT RESTRUCTURING FOR THE SAMOA AVIATION INVESTMENT PROJECT JUNE 6, 2016
Vu l n e r a b i l i t y non-communicable disease remoteness disaster risk management climate change RISING SE A L E V EL diseconomies of scale labor migration volatile growth natural disasters PIC S VO LU M E 2
萨摩亚总理图伊拉埃帕出席集团萨摩亚法莱奥诺国际机场升级改造项目竣工仪式
王雪峰视察集团在建的萨摩亚机场项目
SAMOA Public Expenditure Financial Accountability Assessment JULY 2019
Pacific Aviation Investment Programme (PAIP) - Samoa
驻萨摩亚大使王雪峰出席中国援建项目法雷奥罗国际机场升级改造二期工程竣工仪式
驻萨摩亚大使王雪峰在法雷奥罗国际机场升级改造一期工程竣工仪式上的致辞
钟晓敏出席萨摩亚法莱奥诺国际机场升级改造项目一二期移交仪式
SAMOA 2015 ARTICLE IV CONSULTATION—PRESS RELEASE; STAFF REPORT; AND STATEMENT BY THE EXECUTIVE DIRECTOR FOR SAMOA
驻萨摩亚大使王雪峰在法雷奥罗国际机场培训及应急指挥中心、维修站竣工仪式上的致辞
First Phase Of Samoa Airport Renovations Completed
New aerobridges opened at Faleolo International Airport
中国进出口银行2019年度报告
本行融资支持项目案例
Approved Estimates of Receipts and Payments of the Government of Samoa for the Financial Year Ending 30th June 2016
THE WORLD BANK MONTHLY OPERATIONAL SUMMARY
Monitoring of Graduated and Graduating Countries from the Least Developed Country Category: Samoa
Equatorial Guinea, and Vanuatu
Approved Estimates of Receipts and Payments of the Government of Samoa for the Financial Year Ending 30th June 2019
PUBLIC ACCOUNTS FOR THE FINANCIAL YEAR ENDED 30 JUNE 20 14
PUBLIC ACCOUNTS FOR THE FINANCIAL YEAR ENDED 30 JUNE 2015
PUBLIC ACCOUNTS FOR THE FINANCIAL YEAR ENDED 30 JUNE 2016
PUBLIC ACCOUNTS FOR THE FINANCIAL YEAR ENDED 30 JUNE 2017
PUBLIC ACCOUNTS FOR THE FINANCIAL YEAR ENDED 30 JUNE 2018
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PUBLIC ACCOUNTS FOR THE FINANCIAL YEAR ENDED 30 JUNE 2020
PUBLIC ACCOUNTS FOR THE FINANCIAL YEAR ENDED 30 JUNE 2021
Report and Recommendation of the President to the Board of Directors - Proposed Programmatic Approach and PolicyBased Grant for Subprogram 1 Independent State of Samoa: Fiscal Resilience Improvement Program 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.