Active Development AidData Chinese Aid

Chinese Government provides RMB 200 million interest-free loan — via March 2004 ETCA — for various activities (linked to Record ID#s #49942, #49943, #49946, #49947, #49945, #69987)

¥200M RMB

Funder	China Ministry of Commerce
Recipient Organization	Government of Myanmar (Burma)
Country	Myanmar
Start Date	Mar 24, 2004
End Date	Dec 11, 2027
Duration	8,662 days
Number of Grantees	1
Roles	Recipient
Data Source	AidData Chinese Aid
Grant ID	`64759`

Grant Description

Chinese Government provides RMB 200 million interest-free loan — via March 2004 ETCA — for various activities During Vice Premier Madam Wu Yi's visit to Myanmar in March 2004, an Economic and Technical Cooperation Agreement was signed.

According to the ETCA, the Chinese government provided a grant of RMB 50 million and a low-interest concessional loan of RMB 200 million, which is recorded in this project. The agreements were signed on March 24, 2004. The loan was divided among various ministries and was used to fund multiple projects.

The exact division of the loan is listed in the subsidiary projects below: Record ID#49942: Ministry of Agriculture and Irrigation bought nearly 200 electric water pumps at the cost of RMB 60 million.

Record ID#49943: Ministry of Mines plans to buy an oxygen plant and spare parts for the iron and steel plants in Pyin Oo Lwin at the cost of RMB 10.33 million. Record ID#69987: Ministry of Industry (1) used RMB 44 million for unspecified projects. Record ID#49945: Ministry of Industry (2) RMB 20 million for engine modification for vehicle use.

Record ID#49946: RMB 30 million for the production of hydro turbine and generators. Record ID#49947: The Ministry of Electric Power received RMB 35.65 million for three hydropower projects.

📋 Staff Comments

While the source describes the loan as 'low-interest,' AidData assumes the loan as being interest-free due to its status as coming from an ETCA. Since loan terms for the interest-free loan are unavailable, AidData has set maturity period to 20-years by default and grace period to 10-years by default per China's Foreign Assistance White Paper (http://www.cidca.gov.cn/2018-08/06/c_129925064_3.htm) which states that the maturity period of interest-free loans is 20-years, with a drawdown period of 5-years, grace period of 5-years, and repayment over 10-years. AidData treats the drawdown period as providing 5-years of additional grace.

📚 Sources & References

Asia Research Institute Working Paper Series No. 86
Modern China-Myanmar Relations Dilemma of Mutual Dependence
In the Name of Pauk-Phaw: Myanmar's China Policy Since 1948 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 Myanmar (Burma)

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