China Eximbank reschedules loan - via 4.5 years grace period extension - for 60MW Upper Trishuli 3A Hydroelectric Power Plant Construction Project (Linked to Record ID#53716)

On February 28, 2011, the Government of Nepal and China Eximbank signed a government concessional loan (GCL) agreement [CHINA EXIMBANK GCL NO. (2011) 9 TOTAL NO. (1399)] worth RMB 640 million for the 60MW Upper Trishuli 3A Hydroelectric Power Plant Construction Project.

The Government of Nepal used the proceeds of the loan to develop an on-lending arrangement (through a ‘Subsidiary Loan Agreement’) with NEA on April 15, 2011. The loan agreement went into effect on June 1, 2011.

However, the scope of the project was subsequently expanded and the face value of the loan was increased to $149,378,539.

The loan achieved a disbursement rate of at least 66.3% ($99,047,167 out of $149,378,539), with 58 disbursements taking place between June 2011 and June 2021. The loan's amount outstanding was RMB 537,862,139 ($83,124,966) as of July 15, 2021.

NEA (the ultimate borrower) was expected to use the proceeds of the loan to finance a commercial (EPC) contract that it signed with China Gezhouba Group Co. Ltd. (CGGC) on May 31, 2010. Some time in 2016, China Eximbank agreed to start negotiations with Nepal to restructure this loan.

In September 2017, China agreed to extend the 5-year grace period attached to its 2011 loan for the 60MW Upper Trishuli 3A hydroelectric power plant by an additional 4.5-years (increasing the total grace period to 9.5-years).