Completed Mixed AidData Chinese Aid

China Eximbank provides $43.124 million preferential buyer's credit for Locomotive Construction Plant Project (Linked to Record ID#98029, 96221)

$43.12M USD

Funder	Export-Import Bank of China (China Eximbank)
Recipient Organization	Myanmar Central Bank\|Myanmar Railways
Country	Myanmar
Start Date	Oct 18, 2013
End Date	Apr 14, 2031
Duration	6,387 days
Number of Grantees	1
Roles	Recipient
Data Source	AidData Chinese Aid
Grant ID	`64081`

Grant Description

China Eximbank provides $43.124 million preferential buyer's credit for Locomotive Construction Plant Project On October 18, 2013, China Eximbank and Myanmar Railway — a state-owned railway company under the Ministry of Rail Transportation — signed a $43.124 million preferential buyer’s credit (PBC) agreement for the Locomotive Construction Plant Project.

📋 Loan / Grant Terms

📅 Maturity20 years

⏳ Grace Period5 years

💹 Interest Rate2%

The proceeds of the PBC were to be used by the borrowing to finance 90% of the cost of a $47.916 million EPC contract between Myanmar Railway and China National Machinery Import and Export Corporation, which was signed on July 19, 2013. The purpose of this project was to build a locomotive construction plant (factory) in the city of Naypyidaw.

Upon completion, it was expected that the plant would be able to produce 20 locomotives each year. China National Machinery Import and Export Corporation was the general EPC contractor responsible for implementation. CRRC Dalian Company Limited was also involved in implementation of the project (most likely as a subcontractor).

Construction began on June 1, 2015. Then on March 26, 2018, the assembly of the first locomotive commenced. The project was officially completed on December 29, 2018. The locomotive construction plant (factory) reportedly employs 450 people.

There are some indications that the China Eximbank loan for the Locomotive Construction Plant Project may have financially underperformed vis-a-vis the original expectations of the lender.

In 2020, China Eximbank and the Government of Myanmar signed a debt suspension agreement as part of the G-20 Debt Service Suspension Initiative (DSSI).

Under the terms of the agreement, the lender agreed to suspend principal and interest payments due between May 1, 2020 and December 31, 2020 under 3 buyer’s credit loan (BCL) agreements, 6 government concessional loan (GCL) agreements, and 27 preferential buyer’s credit (PBC) agreements (as captured via Record ID#98029).

Debt service payments under many of these loan agreements were again deferred in 2021 (as captured via Record ID#96221).

📋 Staff Comments

The China Eximbank loan that supported this project is not included in the Overseas Development Finance Dataset that Boston University’s Global Development Policy Center published in December 2020.
Myanmar’s Ministry of National Planning and Economic Development puts the face value of the China Eximbank loan at $47.02 million.
This project is also known as the Locomotive Construction Plant and Locomotive Component Assemblies Project. The Chinese project title is 缅甸铁路机车厂项目 or 缅甸新建机车和客车组装厂 or 造厂和铁路客车制造厂项目. The Burmese project title is လူစီးတြဲ၊ ကုန္တြဲသစ္တည္ေဆာက္ေရး.
An additional China Eximbank PBC was issued for a Passenger Carriage Manufacturing Plant Project on October 18, 2013 (captured via Project ID#63759).

📚 Sources & References

中缅合作的内比都机车厂将年产20辆机车
洪亮大使考察缅甸铁路机车厂
洪亮大使出席缅甸铁路机车制造厂和客车车厢制造厂项目新车交付和通车仪式
Myanmar Railways to buy Chinese materials in return for pledged US$92m loan
驻缅甸大使杨厚兰出席中缅铁路机车合作项目签约仪式
China and Myanmar Sign $100 Million Loan Agreement for Rural Development
中国进出口银行与缅方签署小额农贷等协议
China's Overseas Development Finance
Myanmar celebrates completion of rolling stock assembly plants
Nay Pyi Taw locomotive factory and Myitnge carriage factory to open soon
Ambassador Yang Houlan attended the signing ceremony of China-Myanmar Railway Locomotive Cooperation Project
CRRC Myanmar's localized manufacturing of locomotives and buses is put into operation
MR’s locomotive factory expected to be completely operational in late 2018
Nay Pyi Taw locomotive factory and Myitnge carriage factory to open soon
Nay Pyi Taw Railway Locomotive Factory to produce new locomotives
China CNR Long Passenger Equipment Company will build a railway passenger car manufacturing plant in Myanmar
Diesel locomotives for Myanmar rolled out
Over $ 3 billion and nearly 2 billion yuan in loans from China in four years
Sustainable Development Report 2012-2013
Manufacturing and Assembling: New Locomotive Assembling Factory in NPT inspected
国鉄の車両工場、ネピドーで12月に完成へ 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

Myanmar Central Bank|Myanmar Railways

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