Completed Development AidData Chinese Aid

China Eximbank provides RMB 1.2 billion government concessional loan for Procurement of 6 Oil Vessels Project (Linked to Record ID#55046 and #38342)

¥1.2M RMB

Funder	Export-Import Bank of China (China Eximbank)
Recipient Organization	Government of Bangladesh
Country	Bangladesh
Start Date	Nov 14, 2016
End Date	Oct 17, 2031
Duration	5,450 days
Number of Grantees	1
Roles	Recipient
Data Source	AidData Chinese Aid
Grant ID	`52873`

Grant Description

China Eximbank provides RMB 1.2 billion government concessional loan for Procurement of 6 Oil Vessels Project On November 14, 2016, China Eximbank and the Government of Bangladesh signed an RMB 1,200,000,000 government concessional loan (GCL) agreement for the Procurement of 6 Oil Vessels Project.

📋 Loan / Grant Terms

📅 Maturity20 years

⏳ Grace Period5 years

💹 Interest Rate3%

The borrower was expected to use the proceeds of the loan to finance a $184.5 million commercial contract between Bangladesh Shipping Corporation (BSC) and China National Machinery Import and Export Corporation, which was signed in October 2016.

According to the Government of Bangladesh’s Economic Relations Division (ERD), the GCL had achieved a disbursement rate of 58.4% (RMB 701,140,000 out of RMB 1,200,000,000) as of June 30, 2018, 96% (RMB 1,152,910,000 out of RMB 1,200,000,000) as of June 30, 2019, 99.9% (RMB 1,199,990,000 out of RMB 1,200,000,000) as of June 30, 2020, and 99.9% (RMB 1,199,990,000 out of RMB 1,200,000,000) as of June 30, 2021.

No repayments on the GCL had been made as of June 30, 2018, June 30, 2019, June 30, 2020 or June 30, 2021.

The purpose of the project was for Bangladesh Shipping Corporation (BSC) to purchase 3 bulk oil tankers and 3 oil carriers from the China National Machinery Import and Export Corporation. Each ship was expected to have a load of 39,000 tons.

The 3 new bulk oil tankers and 3 oil carriers were to be built by the Yangzijiang Shipbuilding (Holdings) Ltd. for the Bangladesh Shipping Corporation (BSC), and they were expected to be delivered in 2018 to join the BSC's existing fleet of 8 ships. The keel laying for the first vessel was concluded on January 30, 2018.

The second vessel — a bulk oil tanker — was launched from the slipway of the New Yangzi shipyard on June 14, 2018. Two additional vessels were launched on July 25, 2018. Another vessel was launched on February 2, 2018. On January 22, 2019, a 39000DWT tanker was successfully delivered to BSC.

📋 Staff Comments

The Government of Bangladesh's loan identification number for the China Eximbank GCL is L1120161014A.
This project is also known as the 'Purchase of 6 Oil Ships Project'.
Given that the sixth vessel was successfully delivered to BSC on January 22, 2019, AidData has status-coded the project as complete and set the project completion date to January 22, 2019.
The loan's borrowing terms are identified in the Financial Statements of Bangladesh Shipping Corporation for the First Quarter Ended September 30, 2024: https://bsc.portal.gov.bd/sites/default/files/files/bsc.portal.gov.bd/page/99776f24_50a4_4c56_a9e8_7ba73c287726/2024-11-06-05-55-0cbe2a2eadf0d4551418fa406e54fd11.pdf

📚 Sources & References

Chinese Exim Bank to give US$ 1.16b in loan
YANGZIJIANG LAUNCHES SECOND BULKER FOR BANGLADESH SHIPPING CORPORATION
One More Launching at NYZ
New Yangzi Shipyard: Keel laying and Steel Cutting on the same day
Two vessels launched in one day at NYZ shipyard
Erection Ceremony for The Third 39000DWT BC
Bangladeshi Shipping 39000DWT Chemical Tanker departs
Keel laying for two vessels
COMMITMENT
DISBURSEMENT AND REPAYMENT OF EXTERNAL (ODA) LOANS (ACTIVE) Up to 30 June 2017
CHAPTER ELEVEN TRANSPORT AND COMMUNICATION
Grant No.49 152-Ministry of Shipping
The state-owned Bangladesh Shipping Corporation (BSC) is going to get six vessels
COMMITMENT
DISBURSEMENT AND REPAYMENT OF EXTERNAL (ODA) LOANS (ACTIVE)
Jointly Building Belt and Road towards SDGs - Bangladesh
Table-7.2 COMMITMENT
DISBURSEMENT AND REPAYMENT OF EXTERNAL (ODA) LOANS (ACTIVE) Up to 30 June 2019
COMMITMENT
DISBURSEMENT AND REPAYMENT OF EXTERNAL (ODA) LOANS (ACTIVE)
BSC to get 6 ships from China by June 2019
First Quarter Financial Statements (Un- Audited) Of Bangladesh Shipping Corporation (BSC) BSC Bhaban
Saltgola Road
Chattogram Bangladesh For The First Quarter Ended September 30, 2024. 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.