Completed Mixed AidData Chinese Aid

China Eximbank provides $135.66 million preferential buyer’s credit for New Enga Provincial Hospital (NEPH) Construction Project

$135.66M USD

Funder	Export-Import Bank of China (China Eximbank)
Recipient Organization	Government of Papua New Guinea
Country	Papua New Guinea
Start Date	May 10, 2017
End Date	Dec 19, 2026
Duration	3,510 days
Number of Grantees	1
Roles	Recipient
Data Source	AidData Chinese Aid
Grant ID	`63688`

Grant Description

China Eximbank provides $135.66 million preferential buyer’s credit for New Enga Provincial Hospital (NEPH) Construction Project In January 2015, the Government of Papua New Guinea submitted a loan application to China Eximbank for the New Enga Provincial Hospital (NEPH) Construction Project. The Chinese Embassy in Papua New Guinea confirmed receipt of the loan application in April 2015.

On May 10, 2017, China Eximbank and the Government of Papua New Guinea signed a $135.66 million preferential buyer’s credit (PBC) agreement for the New Enga Provincial Hospital (NEPH) Construction Project. The borrowing terms of the PBC are unknown.

However, it is known that the proceeds of the loan were to be used by the borrower to finance approximately 85% of the cost of a $159.6 million commercial contract (No. CSTB 3193) with Guangdong Foreign Construction Co. Ltd. (GDFC), which was signed in April 2016. The purpose of the project is to construct a 300-bed hospital complex in the town of Wabag within Enga Province.

The complex, which was designed by an American architect, sits on 34 hectares of land and includes 14 hospital buildings (150 beds, 20,500 square meters in total), 25 staff dormitories (10,500 square meters in total), external works, and a sewage treatment plant. On June 16, 2017, a formal groundbreaking ceremony took place.

However. construction did not begin until December 14, 2017. The first loan disbursement (drawn down) took place on June 19, 2017.

The project was originally expected to reach completion by the end of 2020, but the project had only achieved a 50% completion rate as of June 2020. The Prime Minister of Papua New Guinea conducted an on-site project inspection on January 10, 2020. The project was completed and handed over on June 20, 2022.

📋 Staff Comments

This project is also known as the Construction of New Enga Provincial Hospital Project. The Chinese project title is 新恩加省医院建设项目.
There is a discrepancy between the face value of the loan, as reported by the Government of Papua New Guinea ($162,646,423) and Guangdong Foreign Construction Co. Ltd. ($135.66 million). The value reported by Guangdong Foreign Construction Co. Ltd. is coded, because it was reported in 2018 and the Government of Papua New Guinea value was reported in December 2015 (which appears to have been before the finalization of the loan).
This record has been marked as having evidence of financial distress because it was part of the debt restructuring agreement captured in record #95853.

📚 Sources & References

驻巴布亚新几内亚大使薛冰出席恩加省医院项目开工仪式
驻巴新大使薛冰出席恩加省医院项目开工仪式
Economic & Commercial Counsellor from Chinese Embassy in PNG Visited Our Construction Site of New Enga Provincial Hospital
中国驻巴布亚新几内亚经商处刘林林参赞一行莅临我司恩加医院项目参观指导
我司承建的巴布亚新几内亚新恩加医院建设项目举行隆重开工仪式
PM O’NEILL ARRIVES FOR THE NEW ENGA PROVINCIAL HOSPITAL GROUNDBREAKING
BREAKING NEWS: PNG GOV'T NEGOTIATED HALF A BILLION KINA LOAN FROM EXIM BANK OF CHINA FOR ENGA PROVINCE
PM O'Neill Launches K400 Million Enga Provincial Hospital Project
PM O'Neill Launches K400 Million Enga Provincial Hospital Project, 2015 BUDGET ESTIMATES OF REVENUE AND EXPENDITURE FOR NATIONAL GOVERNMENT DEPARTMENTS: VOLUME 2B, 2018 Government of PNG Bond Prospectus
PNG Prime Minister Marape Visits Enga Provincial Hospital Project
Project Brief September 2018
PRIME MINISTER MARAPE IMPRESSED WITH INFRASTRUCTURE DEVELOPMENT IN ENGA
A Grand Groundbreaking Ceremony Was Held for the New Enga Provincial Hospital Project in PNG Undertaken by GDFC
巴新总理马拉佩赴我司恩加省医院项目参观考察
China's Overseas Development Finance, 2018 Government of Papua New Guinea Bond Prospectus.pdf
曾凡华大使出席我援建巴布亚新几内亚恩加省医院项目竣工交接仪式
State-of-the-art hospital for Enga (Loop PNG)
曾凡华大使出席我援建巴布亚新几内亚恩加省医院项目竣工交接仪式
Volume 3B – PUBLIC INVESTMENT PROGRAM FOR STATUTORY AUTHORITIES AND PROVINCIAL GOVERNMENTS 2023 - 2026 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 Papua New Guinea

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