Completed Development AidData Chinese Aid

MOFCOM provides RMB 20 million interest-free loan for Highway Construction and Paving Equipment Project (Linked to Record ID#41144)

¥20M RMB

Funder	China Ministry of Commerce
Recipient Organization	Government of Yemen
Country	Yemen
Start Date	Dec 21, 2003
End Date	Sep 22, 2026
Duration	8,311 days
Number of Grantees	1
Roles	Recipient
Data Source	AidData Chinese Aid
Grant ID	`64779`

Grant Description

MOFCOM provides RMB 20 million interest-free loan for Highway Construction and Paving Equipment Project On December 21, 2003, the Chinese Government and the Government of Yemen signed an RMB 20 million ($2,409,638) interest-free loan agreement for the Highway Construction and Paving Equipment Project.

Then, on October 19, 2004, Yemen’s Parliament signed the loan agreement into law (Law No. 25 of 2004).

The borrower used the proceeds of the loan to finance a commercial contract between the Government of Yemen’s Ministry of Public Works and Highways and Tianjin Machinery Import and Export Co. (天津机械进出口有限公司), which was signed on November 12, 2003.

The purpose of the project was to finance the acquisition of highway construction and asphalting equipment for use in the capital city of Sana'a.

China’s Ministry of Commerce, which provided the loan, identifies this project as having reached completion in one of its annual yearbooks. The Tianjin Machinery Import and Export Co. also provided photographic evidence of project implementation. However, the precise completion date of this project is unknown.

📋 Staff Comments

The Chinese project title is 筑路设备和材料项目 or 提供筑路设备和零配件 or 提供筑路设 or 援也门施工机械项目. The Arabic project title is لتمويل شراء وحدة شق وسفلته لأمانةالعاصمة.
One MOFCOM source identifies the date of the signing of the loan agreement as November 12, 2003. This issue merits further investigation.
Since the borrowing terms of the interest-free loan are unavailable, AidData has set the maturity 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 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

Yemen Economic Update Winter 2004
Parliament approves loan agreements
China Data 032010, بشأن الموافقة على اتفاقية القرض المبرمة بين حكومة الجمهورية اليمنية وحكومة جمهورية الصين الشعبية لتمويل شراء وحدة شق وسفلته لأمانة العاصمة, قانون رقم (25) لسنة 2004م بشأن الموافقة على اتفاقية القرض المبرمة بين حكومة الجمهورية اليمنية وحكومة جمهورية الصين الشعبية لتمويل شراء وحدة شق وسفلته لأمانة العاصمة
对外援助_天津机械进出口有限公司, قبل إجازته - البرلمان يوافق على أربع اتفاقيات وقانون الجامعات الأهلية, قرابة 6 ملايين دولار من الصين لمساعدة اليمن فى تنمية المشروعات الاقتصادية صحيفة الشعب اليومية على الخط, ثانياً / ما يتعلق بالموازنة العامة للدولة (السلطة المركزية)
中国向也门提供筑路设备合同的签署 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.