Completed Mixed AidData Chinese Aid

China Eximbank provides $75.4 million buyer’s credit loan for Northern Road Rehabilitation Project (C3 and C7) (Linked to Record ID#71641, #71642, #71643, #71644, #71645, #71647)

$74.76M USD

Funder	Export-Import Bank of China (China Eximbank)
Recipient Organization	Government of Sri Lanka
Country	Sri Lanka
Start Date	Sep 09, 2010
End Date	Jul 29, 2032
Duration	7,994 days
Number of Grantees	1
Roles	Recipient
Data Source	AidData Chinese Aid
Grant ID	`71646`

Grant Description

China Eximbank provides $75.4 million buyer’s credit loan for Northern Road Rehabilitation Project (C3 and C7) On September 9, 2010, China Eximbank and the Government of Sri Lanka signed a $75.4 million buyer’s credit loan (BCL) agreement [No.BLA 201004] for the Northern Road Rehabilitation Project (C3 and C7).

The face value of the BCL was subsequently downsized to $74,758,205.

📋 Loan / Grant Terms

📅 Maturity15 years

⏳ Grace Period3 years

China Eximbank disbursed an unknown amount in 2010, an unknown amount in 2011, an unknown amount in 2012, $14,629,704.46 in 2013, and $17,770,335.30 in 2014. The borrower made repayments worth $6,229,850 in 2018, $6,229,850 in 2019, $6,229,850 in 2020 and $6,229,850 in 2021.

The loan's amount outstanding was $52,953,729 as of December 31, 2017, $46,723,879 as of December 31, 2018, $40,494,029 as of December 31, 2019, $34,264,179 as of December 31, 2020, $28,034,329 as of December 31, 2021, and $24,919,402 as of June 30, 2022. 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 purpose of the Northern Road Rehabilitation Project (C3 and C7) was to rehabilitate and improve the 84 km Jaffna–Point Pedro Road (AB020), Putter-Meesalai Road (AB032), Jaffna–Kankasanturai Road (AB016), and Jaffna–Palali Road (AB018). C3 stands for Contract 3. C7 stands for Contract 7. China Railway No.5 Engineering Group was the contractor responsible for implementation of C7.

China Harbour Engineering Corporation was the contractor responsible for implementation of C3. The preliminary activities of the project commenced on December 1, 2010. Project completion was originally scheduled for December 8, 2013.

However, the project was completed ahead of schedule and handed over to Sri Lanka’s Road Development Authority on October 1, 2013.

📋 Staff Comments

This project also goes by the title Northern Road Rehabilitation Project -(AB020) (AB032) (AB016) (AB018). 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 2010034.

📚 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
Public Investment supported by Export Credit
Completed Project: Roads and Bridges
Northern Road Rehabilitation Project (NRRP)
Monthly Bulletin September 2010
Northern Road Rehabilitation Project for rehabilitation of 84 kilometres of Jaffna - Point Pedro Road Puttur - Meesalai Road
Jaffna - Kankasanturai Road and Jaffna - Palali Road - 2014
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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