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ICBC provides $366 million buyer’s credit for Mandisovi-Chico and La Paz-Estacas de Entre Ríos Irrigation Project
| Funder | Industrial and Commercial Bank of China (ICBC) |
|---|---|
| Recipient Organization | Government of the Province of Entre Ríos |
| Country | Argentina |
| Start Date | Oct 22, 2014 |
| End Date | Mar 13, 2028 |
| Duration | 4,891 days |
| Number of Grantees | 1 |
| Roles | Recipient |
| Data Source | AidData Chinese Aid |
| Grant ID | 54581 |
Grant Description
ICBC provides $366 million buyer’s credit for Mandisovi-Chico and La Paz-Estacas de Entre Ríos Irrigation Project In mid-June 2013, the China State Construction Engineering Company expressed interest in investing in infrastructure works in the province of Entre Ríos.
Then, on October 22, 2014, the Industrial and Commercial Bank of China (ICBC) and the Government of the Province of Entre Ríos signed a $366,000,000 buyer's credit loan agreement for the Mandisovi-Chico and La Paz-Estacas de Entre Ríos Irrigation Project. The agreement was signed by Mr. Gustavo Bordet, Governor of Entrios Rios Province, and Mr.
Gailigo, Ambassador of Argentina to China.
The loan agreement also included a 1.5% management fee and a commitment fee of 1.45% per year on undisbursed funds.
Sinosure provided insurance for 95% of the buyer’s credit loan, and the remaining 5% of the loan was guaranteed by China State Construction Engineering Corporation (CSCEC).
The proceeds of the loan were to be used by the borrower to finance approximately 85% of the cost of a $390 million (RMB 2.68 billion) commercial contract with CSCEC, which was signed on July 18, 2014.
The purpose of the project is to develop and construct two aqueducts: one Mandisovi to Chico and one from La Paz to Estacas de la Provincia Entre Ríos.
More specifically, the project consists of an aqueduct from North Entrerriano to La Paz Estacas (Acueducto del Norte Entrerriano-La Paz Estacas) and the distribution of water for irrigation from Mandisovi to Chico (Sistematizacioón y Distribución de Agua Para Riego-Mandisoví Chico).
The aqueducts are expected to provide 200,000 hectares of irrigation to the region and help increase agricultural productivity (specifically for citrus fruits, rice, and corn).
The project has provoked three different types of objections: the direct issuance (without public bidding) of a contract to a Chinese company, potential environmental degradation, as well as excessive public debt.
The M’biguá Foundation and Environmental Justice has also warned about a lack of transparency and information about the project.
Additionally, an Entre Ríos local organization brought an unconstitutionality action (with respect to the law No. 10.352) against the provincial government's authorization of the project.
In May 2016, the government of Entre Ríos took the decision to suspend the La Paz-Estacas Aqueduct due to these concerns.
The Mandisovi-Chico aqueduct was not affected by this decision, however there is no evidence of whether or not that aqueduct has begun construction. No further implementation status updates could be identified by AidData as of July 2023. CSCEC identifies the project on its website in a list of major ongoing projects being implemented by the company
Staff Comments
- The loan agreement can be accessed in its entirety via https://www.dropbox.com/s/qf0vvpfa4iy4rh1/2015%20ICBC%20loan%20for%20the%20development%20and%20construction%20of%20irrigation%20projects%20.pdf?dl=0 and https://www.documentcloud.org/documents/20484884-arg_2015_4592. The Spanish project title is Proyecto de riego Mandisovi-Chico y La Paz-Estacas de Entre Ríos.
- The China-Latin America Commercial Loans Tracker, which is produced by the Inter-American Dialogue, does not capture the syndicated loan that supported this project.
- For loan and debt rescheduling records with variable interest rates, AidData calculates the all-in interest rate at T0 based on the reference rate (such as LIBOR or EURIBOR) on the loan start date, plus any known margin. Please see the methodology for additional details.
Sources & References
- A Chinese Agreement
- Acueducto chino: las dudas son las mismas
- ACUERDOS DE COOPERACIÓN
- Anger over Chinese aqueducts in Argentina
- Argentina. Entre Rios. Bordet buscó consenso para conseguir un crédito de capitales chinos
- Argentina: el asunto de los acueductos chinos
- Bordet le bajó el pulgar a uno de los acueductos chinos
- China-Latin America Finance Database
- Chinese investments in Argentina: the aqueducts in Entre Ríos
- CÁMARA DE DIPUT ADOS 1 3 5 º P E R Í O D O L E G I S L A T I V O
- Entre Ríos: harán una asamblea para tratar la demanda contra la Ley de Acueductos
- Nación estudia el proyecto del acueducto chino en Entre Ríos
- Proyectos chinos en infraestructura en Argentina y mecanismos de acaparamiento de tierras: Un análisis desde la gobernanza de la tierra
- Se confirmó que China construirá dos acueductos en Entre Ríos
- 中国建筑股份有限公司重大项目公告
- 阿根廷省级公共工程与中国企业在上海签署第一个融资协议 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 the Province of Entre Ríos
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