Active Mixed AidData Chinese Aid

Chinese Government pledges $130 million grant to Government of Costa Rica

$130M USD

Funder	Unspecified Chinese Government Institution
Recipient Organization	Government of Costa Rica
Country	Costa Rica
Start Date	Jun 01, 2007
End Date	Sep 06, 2026
Duration	7,037 days
Number of Grantees	1
Roles	Recipient
Data Source	AidData Chinese Aid
Grant ID	`52427`

Grant Description

On June 1, 2007, the Chinese Government promised to donate $130 million of grant funding to the Government of Costa Rica.

This aid was to be used for various purposes, and it was expected to include material goods, such as police vehicles and equipment. This memorandum also included a scholarship for 20 Costa Rican students a year to study in China. This memorandum was co-signed by China's then-foreign minister Yang Jiechi.

This aid was promised alongside a $300 million purchase of Costa Rican bonds.

These bonds, according to the leaked agreement documents, were to be purchased in two payments: China's State Administration of Foreign Exchange would purchase $150 million of the bonds at 2% interest with a term of 12-years, and purchase the remaining $150 million in January 2009.

📋 Staff Comments

1. This donation and the associated purchases of bonds is thought to have been an attempt to push Costa Rica away from Taiwan/the Republic of China and rescind its recognition of the Taipei government. The memorandum was originally not available to the public but was leaked by the the Costa Rican news organization La Nación, leading to the constitutional court of Costa Rica forcing the government to release the terms of the agreement to the public.

📚 Sources & References

When disaster strikes, should China do more?
A detailed look at the relationship between China and Costa Rica - Costa Rica Star News
China Used Reserves To Sway Costa Rica - WSJ
Cash Helped China Win Costa Rica’s Recognition - The New York Times
The Final Frontier_ China
Taiwan, and the United States in Strategic Competition for Central America _ SpringerLink
China Courts Costa Rica; Expands its Presence in Washington’s Backyard 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.

All Grantees

Government of Costa Rica

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