Completed Development AidData Chinese Aid

China Eximbank provides RMB 350 million government concessional loan for Phase 2 of Tanna and Malekula Road Rehabilitation Project (Linked to Record ID#37763)

¥350M RMB

Funder	Export-Import Bank of China (China Eximbank)
Recipient Organization	Government of Vanuatu
Country	Vanuatu
Start Date	Nov 09, 2018
End Date	Dec 01, 2026
Duration	2,944 days
Number of Grantees	1
Roles	Recipient
Data Source	AidData Chinese Aid
Grant ID	`62666`

Grant Description

China Eximbank provides RMB 350 million government concessional loan for Phase 2 of Tanna and Malekula Road Rehabilitation Project On November 9, 2018, the Chinese Government and the Government of Vanuatu signed a preferential loan framework agreement for Phase 2 of the Tanna and Malekula Road Rehabilitation Project.

On the same day, China Eximbank and the Government of Vanuatu signed an RMB 350 million government concessional loan (GCL) agreement in 2018 for Phase 2 of the Tanna and Malekula Road Rehabilitation Project.

📋 Loan / Grant Terms

⏳ Grace Period7 years

💹 Interest Rate2%

The proceeds of the GCL are to be used by the borrower to finance a commercial contract between the Government of Vanuatu and China Civil Engineering Construction Corporation (CCECC). The purpose of the project is the construction of 45 kilometers of roads on Tana and Malekula Island.

Once the project is completed, these Phase 2 roads will be connected with the first-phase project to form a complete road network around the island.

The project aims to help improve the investment environment in the areas along the route, promote the export of local agricultural products and the development of tourism, and raise the level of infrastructure construction in Vanuatu. CCECC is the contractor responsible for implementation. On March 2, 2019, a groundbreaking ceremony took place.

Construction was temporarily suspended due to the Covid-19 global pandemic.

However, in November 2020, the Government of Vanuatu’s Council of Ministers (COM) granted CCECC authorization to bring in 28 engineers and special equipment operators from China to Vanuatu recently.

CCECC assured COM that the workers had complied with the necessary health and safety requirements put in place by the Government of Vanuatu after leaving Shanghai in China and transiting in Auckland before arriving in Port Vila.

The workers returned to Vanuatu intended to deliver major infrastructure projects, including Phase 2 of the Tanna and Malekula Road Rehabilitation Project. As of March 2, 2023, the second phase of the Tanna section of the project had reached completion. However, the second phase of the Malekula section of the project was still under construction as of December 15, 2022.

The project's second phase was officially completed on December 18, 2023.

📋 Staff Comments

On April 14, 2014, China Eximbank and the Government of the Republic of Vanuatu (represented by the Ministry of Finance and Economic Management) signed an RMB 350,000,000 government concessional loan (GCL) agreement [CHINA EXIMBANK GCL NO. 2014 (1) TOTAL NO. (504)] for Phase 1 of the Tanna and Malekula Road Rehabilitation Project. This loan is captured via Project ID#37763.
The preferential loan framework agreement for Phase 2 can be accessed in its entirety via https://www.dropbox.com/s/xruw517m71dl3jw/Loan%20Agreement%20for%20Tanna%20and%20Malekula%20Road%20Project%20Phase%20II.pdf?dl=0. The GCL agreement for Phase 1 can be accessed in its entirety via https://www.documentcloud.org/documents/20488925-vut_2014_448 3. The World Bank’s Debtor Reporting System identifies the face value of the loan for Phase 2 as $52,979,266.
This project is also known as the Tanna and Malekula Road Project Phase II. The Chinese project title is 瓦努阿图塔纳岛和马勒库拉岛公路项目二期.
A similar Loan ID, 39256, the following was identified in the source 35365: 'An advance of 1 billion vatu was made to Air Vanuatu in 2008 for the purchase of Y12 Aircraftfrom China. The purchase of these aircraft was funded by a loan from the ChineseGovernment which has been on-lent to Air Vanuatu. This loan was made in Chinese YuanRenminbi and has since been revalued to 856 million vatu as at 31 December 2010. Anamount of 856 million vatu is therefore shown as a liability in borrowings and an asset inadvances to Air Vanuatu. The remaining advance balance for Air Vanuatu representadditional loan advances given to the airline in recent years. 'This infers that the first data point for the 2008 being inaccurate, as the project/loan has been revalued.

📚 Sources & References

'Roads to nowhere' phase II loan agreement
Ambassador to Vanuatu Li Minggang Visits Malekula Island
CCECC handovers Malekula Road Project Phase II
China-aided road project builds hope in Vanuatu
DRS Official Commitments from China through 2020
HE Zhou Haicheng,the Chinese Ambassador to Vanuatu, attended the Ceremony for the handover of Tanna and Malekula Road Rehabilitation and Construction Phase I Project and the ground-breaking of Phase II Project
HE Zhou Haicheng,the Chinese Ambassador to Vanuatu, attended the Ceremony for the handover of Tanna and Malekula Road Rehabilitation and Construction Phase I Project and the ground-breaking of Phase II Project
Historical List of NCBP Cases
Launching of Vanuatu road rehabilitation on Malekula
Model for being stronger together
The fight against the novel coronavirus has opened up a new chapter for China-Vanuatu relations
The Framework Agreement on Concessional Loan Provided by China to Vanuatu
VANUATU 2019 ARTICLE IV CONSULTATION—PRESS RELEASE; STAFF REPORT; AND STATEMENT BY THE EXECUTIVE DIRECTOR FOR VANUATU
VANUATU Joint World Bank-IMF Debt Sustainability Analysis
Vanuatu PM: New Malekula road signifies new level of partnership with China
Zhou Haicheng
Ambassador of Vanuatu, attended the groundbreaking ceremony for the handover and the second phase of the first phase of the Malekula Island Highway, “感谢中国为我们打造‘希望之路’”
中国企业在瓦努阿图实施的最大公路项目竣工
塔纳岛和马勒库拉岛公路一期工程移交暨二期工程奠基仪式隆重举行
瓦努阿图总理：马勒库拉新公路铸就瓦中合作新高度
进出口银行与瓦努阿图再签署一项公路项目贷款协议
进出口银行与瓦努阿图再签署一项公路项目贷款协议
进出口银行融资支持的瓦努阿图塔纳岛和马勒库拉岛公路二期项目顺利完工移交
驻瓦努阿图大使周海成出席塔纳岛和马勒库拉岛公路一期工程对外移交暨二期工程奠基仪式
驻瓦努阿图大使周海成出席塔纳岛和马勒库拉岛公路一期工程对外移交暨二期工程奠基仪式
驻瓦努阿图大使周海成出席马勒库拉岛公路一期工程移交暨二期工程开工仪式
驻瓦努阿图大使周海成出席马勒库拉岛公路一期工程移交暨二期工程开工仪式
驻瓦努阿图大使李名刚出席马勒库拉岛公路二期项目移交仪式, 𝐂𝐂𝐄𝐂𝐂 𝐰𝐨𝐫𝐤𝐞𝐫𝐬 𝐚𝐥𝐥 𝐠𝐞𝐚𝐫𝐞𝐝 𝐰𝐢𝐭𝐡 𝐏𝐏𝐄 𝐰𝐡𝐨𝐥𝐞 𝐫𝐨𝐮𝐭𝐞, 𝐰𝐡𝐞𝐧 𝐭𝐫𝐚𝐯𝐞𝐥𝐥𝐢𝐧𝐠 𝐭𝐨 𝐕𝐚𝐧𝐮𝐚𝐭𝐮. 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.