Active Mixed AidData Chinese Aid

China Eximbank signs $1.666 billion framework agreement with Cambodian Petrochemical Company for Cambodia's First Oil Refinery Project (Linked to Record ID#62466, #85525)

¥1.67M RMB

Funder	Export-Import Bank of China (China Eximbank)
Recipient Organization	Cambodian Petrochemical Company
Country	Cambodia
Start Date	Jan 01, 2013
End Date	Jan 26, 2028
Duration	5,503 days
Number of Grantees	1
Roles	Recipient
Data Source	AidData Chinese Aid
Grant ID	`85490`

Grant Description

China Eximbank signs $1.666 billion framework agreement with Cambodian Petrochemical Company for Cambodia's First Oil Refinery Project On December 28, 2012, Cambodian Petrochemical Company (CPC) — a private company — formed an unnamed joint venture with China Perfect Machinery Industry Co., Ltd. (also known as China Pufa Machinery Industry Co., Ltd.- a subsidiary of Sinomach) to invest in the construction of Cambodia’s first oil refinery, which at the time was expected to cost $2.3 billion USD in total (see linked Record ID#85525).

Then, during the visit of Cambodian Prime Minister Hun Sen to China on April 8, 2013, China Development Bank (CDB), Sinopec (Sinomach), China Export and Credit Insurance Corporation (Sinosure), and Cambodian Petrochemical Company (CPC or 柬埔寨石油化工有限公司) signed a Memorandum of Understanding for cooperation on the project in which CDB pledged a $1.67 billion loan for the construction of a five-million-ton oil refinery in Cambodia.

The refinery would be located on 365 hectare (ha) site — in Toek Thla commune within Prey Nop district — that straddles Kampot and Preah Sihanouk provinces and it was expected to reduce petroleum imports, lower costs, and improve national energy security, particularly once ‘Block A’ begins producing oil.

CDB's $1.67 billion pledge towards this project appears to have been canceled, as China Eximbank subsequently conducted due diligence on the oil refinery project, and on October 16, 2013, CPC and China Eximbank signed a $1.666 billion financing framework agreement for the Oil Refinery Project.

This agreement specified that the $1.96 billion project (lowered from $2.3 billion as stipulated in the 2012 construction agreement) would be implemented in two phases.

CPC and China National Petroleum Corporation (CNPC) Northeast Refining & Chemical Engineering Company signed an engineering, procurement and construction (EPC) contract for Phase 1 on May 5, 2016.

However, this contract appears to have canceled because CPC signed another EPC contract worth $620 million (RMB 4.135 billion) Lanzhou LS Heavy Equipment Co., Ltd. (兰州兰石重型装备股份有限公司) on September 20, 2016.

China Eximbank approved a loan to finance 85% of the cost ($527 million) of this contract (as captured in linked Record ID#62466), and CPC agreed to allow the lender to disburse funds directly to the EPC contractor. Sinosure also agreed to insure the loan.

However, this EPC contract also appears to have been canceled because CPC signed another EPC contract (worth RMB 4,268,000,000) with Sino Great Wall International Engineering Group of the People’s Republic of China (PRC) on April 26, 2017.

A formal groundbreaking ceremony then took place on May 4, 2017; however, Sino Great Wall International Engineering Group subsequently announced that its work on the project was halted.

Media reports in mid-2019 indicate that the project encountered ‘financing problems’ and would likely recommence in 2022. Work is currently still paused.

📋 Staff Comments

This project is also known as the Kinlandmark Oil Refinery Project. The Chinese project title is 柬埔寨500万吨炼油厂项目 or 的柬埔寨500 万吨/年炼油厂项目一期工.
Some sources suggest that this project is being implemented by a joint venture between CPC and CNPC, while other suggest the joint venture consists of CPC and Sinomach.
Even though CPC agreed to allow the lender to disburse funds directly to the EPC contractor, which was Lanzhou LS Heavy Equipment Co., Ltd. at the time of signing, because of the change in contractors, it is unknown whether the China Eximbank funding was disbursed directly to Sino Great Wall Co., Ltd.; therefore, Cambodian Petrochemical Company has been coded as the receiving_agency.

📚 Sources & References

中国浦发机械工业股份有限公司与国家开发银行、中国出口信用保险公司、柬埔寨石油化工有限公司四方共同签署了柬埔寨500万吨/年炼油厂“项目开发合作谅解备忘录
Cambodia Asks Sinopec To Build Oil Refinery By 2018
Cambodian PM's visit to China ends successfully with fruitful outcome: minister
Government Goes to China in Search of Loans
Sino Great Wall Co.
Ltd. 2018 Annual Report
柬中企业携手共建柬埔寨首个500万吨炼油厂
上海企业承建柬埔寨第一家大型炼油厂项目
Strategic Analysis: Chinese Business Activity in Cambodia (Abstract)
Lao People's Democratic Republic: Energy Sector Assessment
Strategy, and Road Map
ASEAN Investment Report 2013-2014
中国进出口银行李若谷行长访问柬埔寨
柬埔寨500万吨炼油厂项目EPC总承包合同在京签署
年产五百万吨炼油厂正式动工兴建投产后将解决柬埔寨成品油依赖进口局面
柬埔寨500万吨/年炼油厂项目，兰石重装终止合同，神州长城接手！
中企参建柬埔寨炼油厂举行奠基动工仪式
兰州兰石重型装备股份有限公司海外重大合同补充公告
中国进出口银行与柬埔寨石化公司签署协议
柬埔寨500万吨炼油厂项目
兰石重装签订柬埔寨500万吨/年炼油厂项目一期工程合同
Oil refinery to receive a $1.67b loan, @HD New Opinion Head S/C;The special
China’s Exim Bank to fund US$1.7b refinery in Cambodia
Ground broken for oil refinery
国机集团所属中国浦发承建柬埔寨首个炼油厂项目
中国进出口银行将向柬炼油厂项目提供16.7亿美元融资
China to fund $1.67bn Cambodian oil refinery
Cambodian PM urges China's Sinopec Corp to build oil refinery by 2018
China's Exim Bank inks deal to fund 1.67 bln USD for oil refinery in Cambodia
Exim Bank to fund $1.67b for Cambodia oil refinery
China's Exim Bank inks deal to fund $1.67b for oil refinery in Cambodia
Cambodian
Chinese firms unveil 1st oil refinery project in Cambodia
New oil refinery joint venture
Chinese
Cambodian firms to jointly build first oil refinery in Cambodia
中国为柬埔寨炼油厂项目融资16.7亿美元
中国民企承建柬埔寨首家炼油厂, 【兴业建筑孟杰&黄杨】柬埔寨调研见闻全纪录！2万字市场最全调研纪要！
Oil refinery construction ‘on schedule’, says official
Oil refinery construction pushed to 2021
Construction of Cambodia’s First Oil Refinery Plant Temporarily Paused
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Oil and gas regulation in Cambodia - Commentary on prospects for investors
兰州兰石重型装备股份有限公司
Cambodia’s First Oil Refinery Breaks Ground in Preah Sihanouk
BU_PITCH_ENGLISH_2019-clean5.xlsx
ASEAN Investment Report 2015
Chinese
Cambodian firms to jointly build first oil refinery in Cambodia
Ground broken for oil refinery
Chinese firm bags contract for oil refinery
New oil refinery joint venture
Nation’s First Oil Refinery Online for 2018
Cambodian Petrochemical Lets Contract for Grassroots Refinery
兰石重装：关于公司海外重大合同终止的公告
柬埔寨颁发首个炼油厂执照将由中国企业承建
Cambodia Breaks Ground On First Oil Refinery 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.