Completed Mixed AidData Chinese Aid

China Eximbank provides $48.3 million buyer’s credit loan for Northern Road Rehabilitation Project (C2) (Linked to Record ID#71641, #71642, #71643, #71644, #71646, #71647)

$48.34M USD

Funder	Export-Import Bank of China (China Eximbank)
Recipient Organization	Government of Sri Lanka
Country	Sri Lanka
Start Date	Apr 29, 2011
End Date	Jun 21, 2027
Duration	5,897 days
Number of Grantees	1
Roles	Recipient
Data Source	AidData Chinese Aid
Grant ID	`71645`

Grant Description

China Eximbank provides $48.3 million buyer’s credit loan for Northern Road Rehabilitation Project (C2) On April 29, 2011, China Eximbank and the Government of Sri Lanka signed a $48,337,233 buyer’s credit loan (BCL) agreement [No. BLA 201111] for the Northern Road Rehabilitation Project (C2).

📋 Loan / Grant Terms

📅 Maturity15 years

⏳ Grace Period3 years

China Eximbank disbursed an unknown amount in 2011, an unknown amount in 2012, $13,499,882.22 in 2013, $12,678,718.48 in 2014, and $1,584,648.31 in 2015. The borrower made repayments worth $4,028,102 in 2018, $4,028,102 in 2019, $4,028,103 in 2020 and $4,028,102 in 2021.

The loan's amount outstanding was $38,266,978 as of December 31, 2017, $34,238,873 as of December 31, 2018, $30,210,771 as of December 31, 2019, $26,182,668 as of December 31, 2020, $22,154,566 as of December 31, 2021, and $20,140,519 as of June 30, 2022.

The purpose of the Northern Road Rehabilitation Project (C2) was to rehabilitate the 67 km Navatkuli-Karaitivu-Mannar (A032) Road. C2 stands for Contract 2. China Harbour Engineering Corporation was the contractor responsible for project implementation. By early 2022, it was clear that the loan was non-performing.

On April 12, 2022, the Government of Sri Lanka announced a ‘pre-emptive’ sovereign debt default, noting that it would suspend debt repayments to all external creditors other than multilateral institutions.

Its decision to suspend external debt service reportedly affected all China Eximbank loans with amounts outstanding at the time of the announcement. The preliminary works of the project commenced on November 10, 2011. The project was originally slated for completion by May 9, 2014.

The activities of the project had been “substantially completed” by May 12, 2014 and handed over to Sri Lanka’s Road Development Authority. However, the project was not fully and officially complete until December 31, 2014.

📋 Staff Comments

This project is also known as Rehabilitation & Improvement of 67km Length of Navatkuli-Karaitivu-Mannar Road Project and the 67Km Length of Navatkuli-Karaitivu-Mannar Road (A032) - C2 Project. The Chinese project title is 北部道路改造与基建恢复项目.
Some official sources identify the management fee as 0.3%. This issue warrants further investigation.
For loan and debt rescheduling records with variable interest rates, AidData calculates the all-in interest rate at T0 based on the reference rate (such as LIBOR or EURIBOR) on the loan start date, plus any known margin. Please see the methodology for additional details.
The Government of Sri Lanka loan key number is 2011008.

📚 Sources & References

RDA annual report 2012
Sri Lanka National Road Network_as-at_2019
The Export-Import Bank of China
MID – YEAR FISCAL POSITION REPORT 2013
Public Investment supported by Export Credit
Monthly Bulletin - 2010
Northern Road Rehabilitation Project (NRRP)
Completed Project: Roads and Bridges
Access Engineering PLC Annual Report 2014/15
Northern Road Rehabilitation Project (Rehabilitation of 67 kilometres of NavatkuliKaraitivu-Mannar Road ) - 2014
斯里兰卡“最美公路”，你走过了吗？（高清组图）
CS-DRMS Report 814
Disbursements in 2014 January to December.pdf, 814 Disbursements Jan to Dec 2015
Disbursement from January to December 2016.pdf, 814-1 Annual 2017 for WEB New.pdf
Transactions For the period from to 2019/01/01 2019/12/31, 814 up to Oct 2018.PDF
Transactions For the period from to 2020/01/01 2020/12/31
Transactions For the period from to 2021/01/01 2021/11/30
Actual Disbursement by Transaction Date
FINANCIAL STATEMENTS OF THE GOVERNMENT FOR THE YEAR ENDED 31ST DECEMBER 2018
FINANCIAL STATEMENTS OF THE GOVERNMENT FOR THE YEAR ENDED 31ST DECEMBER 2019
FINANCIAL STATEMENTS OF THE GOVERNMENT FOR THE YEAR ENDED 31ST DECEMBER 2021
Instrument-wise Details of Central Government External Debt obtained under Foreign Law as at 2022/06/30, 2015 Annual Report Ministry of Finance Sri Lanka
FINANCIAL STATEMENTS OF THE GOVERNMENT FOR THE YEAR ENDED 31 ST DECEMBER 2020 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 Sri Lanka

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