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CMEC provides $67.3 million supplier's credit for Phase II of the Electricity System and Open Access Network of Hulhumale Project
| Funder | China Machinery Engineering Corporation (CMEC) |
|---|---|
| Recipient Organization | Housing Development Corporation Ltd. (HDC) |
| Country | Maldives |
| Start Date | Jul 16, 2018 |
| End Date | Oct 13, 2026 |
| Duration | 3,011 days |
| Number of Grantees | 1 |
| Roles | Recipient |
| Data Source | AidData Chinese Aid |
| Grant ID | 54279 |
Grant Description
CMEC provides $67.3 million supplier's credit for Phase II of the Electricity System and Open Access Network of Hulhumale Project On July 16, 2018, China Machinery Engineering Corporation (CMEC) and the Housing Development Corporation (HDC) signed a $67,313,003 supplier's credit (loan) agreement for Phase II of the Electricity System and Open Access Network of Hulhumale Project.
The loan was to be repaid bi-annually. The borrower purchased credit insurance from Sinosure. The Government of the Maldives also issued a sovereign guarantee in support of the loan.
The borrower was expected to use the proceeds of the loan to finance 80% of the cost of a $84,113,003 commercial contract between CMEC and HDC.
The remaining 20% of the cost of the commercial contract was financed with a $16,800,000 loan from Seylan Bank PLC (Sri Lanka), which was signed on August 16, 2018. CMEC made loan disbursements worth $5,131,221 during calendar year 2021 and $16,229,092 during calendar year 2022. No repayments were made during calendar year 2020 or calendar year 2021.
The loan's amount outstanding was $5,131,221 as of December 31, 2021 and $21,360,313 as of December 31, 2022.
The project involves the construction of a power transmission and distribution system in Hulhumale' with transmission-level voltage of 132kV.
More specifically, this project involves the construction of 132 kV transmission line from the existing STELCO Power House to a new 132 kV substation on Hulhumalé island. China Machinery Engineering Corporation (CMEC) is the contractor responsible for project implementation. The project was originally expected to commenced on February 18, 2021 and conclude on June 18, 2022.
The project ultimately commenced on January 18, 2021.
Staff Comments
- The grace period and the LIBOR term of the CMEC loan are unknown; a term of 6 months LIBOR has been estimated.
- 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.
- This project is also known as the Phase II Electricity Network Project and the 132KV Electrical Network in Hulhumale' Project.
- The amounts outstanding and repayments data are drawn from https://www.dropbox.com/s/q82x5hte85kc20e/105._Statement_of_Government_Guarantees_Audit_Report_2021.pdf?dl=0 and https://www.dropbox.com/s/rik8ynrjweat5aw/StatementOfGovernmentGuaranteesFinancialYear2020%20%281%29.pdf?dl=0 and https://www.audit.gov.mv/Uploads/AuditReports/2024/02February/25._Statement_of_Government_Guarantees_2022___Financial_Statement_Audit.pdf5. Several sources identify the lender as Browns-CMEC.
Sources & References
- The Maldives counts the cost of its debts to China
- CMEC:Building Projects for People's Livelihood by Performing Responsibility
- DESIGN AND CONSTRUCTION OF HULHUMALÉ PHASE II ELECTRICAL
- WATER AND SEWERAGE SYSTEMS2017
- Section 7: Employer's Requirements for the Design and Construction of Hulhumale Phase II Electrical
- Water and Sewerage Systems-2017
- The Maldives Power Distribution Phase II Project Successfully Underwritten by Sinosure
- Government Guaranteed Debt
- Government of Maldives Active Sovereign Guaranteed Debt as at end June 2019
- Consultancy Service for development of 132KV Electrical Network in Hulhumale
- Isles - Details.pdf
- HOUSING DEVELOPMENT CORPORATION LIMITED FINANCIAL YEAR 201 9, 'Design and Construction of Electricity System & Open Access Network of Hulhumalé Phase II'
- STATEMENT OF GOVERENMENT GUARANTEES FINANCIAL YEAR 2018
- Maldives Public Expenditure Review
- Medium Term Debt Management Strategy 2021 - 2023
- Amendment -1
- Statement of Government Guarantees Financial Year 2021
- Statement of Government Guarantees Financial Year 2022, 2022 annual report 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
Housing Development Corporation Ltd. (HDC)
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