Active Mixed AidData Chinese Aid

Bank of China contributes to $1.18 billion syndicated loan for National Road Line B (Corredor B Toll Road) (Linked Record ID#92369)

$236M USD

Funder	Bank of China (BOC)
Recipient Organization	CCA Green B S.A.
Country	Argentina
Start Date	Apr 25, 2019
End Date	May 25, 2033
Duration	5,144 days
Number of Grantees	1
Roles	Recipient
Data Source	AidData Chinese Aid
Grant ID	`54738`

Grant Description

BOC and ICBC's contributions to National Road Line B (Corredor B Toll Road) On July 26, 2018, the Argentine National Road Agency and CCA Green B S.A. — a special purpose vehicle jointly owned by China Construction America (CCA) Inc. and Green SA (a local Argentinian firm) — signed a $2.13 billion franchise (concession) agreement for the National Road Line B (Corredor B Toll Road) Project.

Under the terms of the agreement, CCA Green B S.A. assumed responsibility for constructing a 538 km Corredor B toll road over a five year period and operating the road for 10-years after the end of the construction period.

Then, on April 25, 2019, CCA Green B S.A. signed $1.18 billion syndicated loan agreement with Bank of China, the Industrial and Commercial Bank of China (ICBC), HSBC, Santander, and Sumitomo Mitsui Banking Corporation (SMBC). ICBC's estimated contribution is captured via Record ID#92369. Bank of China's estimated contribution is captured via Record ID#54738.

📋 Loan / Grant Terms

💰 Loan Amountreportedly carries a 15 year maturity

📅 Maturity15 years

The borrower also purchased a credit insurance policy from Sinosure.

The proceeds of the loan were to be used by the borrower to finance an EPC contract with China State Construction Engineering Corporation (CSCEC).

The purpose of the 538 km National Road Line B (Corredor B Toll Road), which is being financed and implemented on a Public-Private Partnership (PPP) basis, is to convert two sections (113 km and 31 km) of National Route 5 into a highway and convert another 372 km section into a safe highway.

National Route 5 passes through the provinces of Buenos Aires and La Pampa, which are two important industrial and agricultural economic zones in Argentina.

After the completion of the project, the vehicle traveling speed at this road section is expected increase to 130km/h and the road will be widened to a two-way four-lane road.

The highway is also expect top play a key role in accelerating economic growth in the region by effectively contributing to the government’s tax revenue, creating employment opportunities and boosting the development of relevant industries. On December 6, 2018, a project commencement ceremony took place in Suipacha, Buenos Aires.

Then, in January 2019, the former Argentine President Mauricio Macri and the governor of Buenos Aires, María Eugenia Vidal, visited the province of Buenos Aires Suipacha and inspected the project site. However, the project encountered various implementation obstacles in 2019 and 2020. In September 2019, a contractual dispute between CCA and Green SA was taken to the International Court of Arbitration.

Then, in early 2020, Argentina’s Public Works Minister Gabriel Katopodis announced that 5 of 6 PPP contracts were terminated (referring to them as "a ruinous model”). These contractual issues led to major work stoppages.

In December 2020, the Government of Argentina announced that it had agreed to terminate the final PPP contract, which was the agreement with CCA Green B S.A. There was no evidence of loan disbursements or physical progress at the time of cancellation.

📋 Staff Comments

This project is also known as the National Route B Highway Project and the Corredor Vial B Transformation Project. The Chinese project title is 阿根廷国道B线特许经营项目.
According to a 2018 Project Finance International publication, SMBC, ICBC, and Bank of China each contributed $355 million to the loan syndicate. However, this publication does not identify the other members of the syndicate (HSBC and Santander). As such, AidData has assumed equal contributions ($236 million) across all of the (five) known participants in the syndicate. This issue warrants further investigation.
China Construction America (CCA) Inc. is a local subsidiary of China State Construction Engineering Corporation (CSCEC).
Some sources suggest that China Construction America (CCA) Inc. rather than CCA Green B S.A. is the borrower. This issue warrants further investigation.
Some sources refer to the project as the Luján-La Pampa highway6. Some sources indicate the portion of CCA Green B S.A. that was owned by Green SA was purchased by CCA at some point in the implementation process. This issue warrants further investigation and has implications on the organization origin value for CCA Green B S.A.

📚 Sources & References

China backs Argentine highway PPP
Commencement Ceremony Held for National Highway Line B Concession Project in Argentina Undertaken by China State Construction
CCA OFFICIALLY SEALS ITS FIRST PPP PROJECT–ARGENTINE NATIONAL ROAD B LINE FRANCHISE
Agreements with China could add investments for up to US $ 3,550 million
China's State-Owned CSCEC Wins USD2.1 Bln Bid to Build Highway in Argentina
Argentina signs $2bn highway PPP with Chinese giant, 2018 PFI Financial League Tables
News
Argentine President Macri praised China State Construction's first franchise highway project in the United States
China insists: it wants to build the highway on RN 5 and says it has the dollars
They agree with the Chinese CCA and Macri's last PPP falls
Chinese construction company CCA challenges Katopodis to continue with its PPP
CSCEC BRI report
During the period of the Belt and Road Forum China State Construction signs a number of cooperation agreements
中国建筑签约阿根廷国道B线特许经营项目
中建美国公司签署阿根廷国道B线特许经营项目贷款协议
League Tables
CCA Green advances Argentine road loan
Limited Investment Ahead For Argentine Transport Infrastructure
Problemas entre los chinos de CCA y Green dejarán en pausa las obras en Ruta 5
El senador compartirá acto en Entre Ríos con el precandidato a gobernador de JxC. La estrategia de Evolución para ganar terreno en la provincia.
Una constructora que ganó un contrato para obras de PPP se presentó en concurso preventivo
U.S.$ TERM LOAN FACILITY TO CONSTRUCTION FACILITY TRUST (FIDEICOMISO DE ASISTENCIA FINANCIERA PPP-RARS-1), to the international court or arbitration of the international chamber of commerce
CCA Green B S.A. (Concesionaria Green B)
Programa de PPP argentino hace su estreno
中国资金支持境外 EPC 总承包项目融资模式介绍及阿尔及利亚实施探讨
LOS CONTRATOS VIALES DE PARTICIPACION PÚBLICO-PRIVADA EN ARGENTINA. ANÁLISIS CRÍTICO DEL MODELO Y DE SU IMPLEMENTACIÓN. COMPARATIVA CON OTROS PAÍSES DE LA REGIÓN Y CON ESPAÑA
El Gobierno rescindió los contratos de rutas por PPP y se hará cargo de las obras
Se cayó el proyecto de la autopista que uniría La Pampa con Luján
Acuerdan con la china CCA y cae el último PPP de Macri 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.