Active Development AidData Chinese Aid

China Development Bank pledges $300 million USD term loan to support infrastructure and cooperation projects as well as sovereign debt in Papua New Guinea

$300M USD

Funder	China Development Bank (CDB)
Recipient Organization	Government of Papua New Guinea
Country	Papua New Guinea
Start Date	Nov 16, 2018
End Date	Jul 28, 2032
Duration	5,003 days
Number of Grantees	1
Roles	Recipient
Data Source	AidData Chinese Aid
Grant ID	`68774`

Grant Description

China Development Bank pledges $300 million USD term loan to support infrastructure and cooperation projects as well as sovereign debt in Papua New Guinea On November 16, 2018, under the witness of Chinese President Xi Jinping and Papua New Guinea Prime Minister Peter O’Neill, the President of the China Development Bank (CDB), Zheng Zhijie, signed a Term Sheet agreement with the Papua New Guinea Deputy Prime Minister and the Minister of the State Treasury pledging a US$300 million sovereign term loan (line of credit).

CDB will provide Papua New Guinea with a 10-year US$300 million sovereign credit to support the Papua New Guinea government's major infrastructure and cooperation projects as well as assist with debt refinancing (source: 国开行与巴布亚新几内亚签署贷款条件书).

📋 Loan / Grant Terms

💰 Loan Amountcarries 10-year maturity and a 3-year grace period

📅 Maturity10 years

⏳ Grace Period3 years

After twelve months of fruitless negotiations, Australia ended up providing a $300 million USD loan as direct budget assistance to meet PNG’s debt rather than CDB.

📋 Staff Comments

A Term Sheet is a lender's formal expression of interest making a loan. However, it is not a legally binding contract.

📚 Sources & References

China Investment Research- Q4 2018
Term Sheet of Facility For Independent State of PNG
国开行与巴布亚新几内亚签署贷款条件书
The Belt and Road comes to Papua New Guinea: Chinese geoeconomics with Melanesian characteristics?
Australia gives $300 million loan to Papua New Guinea
Australia gives $300 million loan to Papua New Guinea
FIFTH DAY Tuesday 13 November 2018 DRAFT HANSARD
ANNUAL REPORT AND FINANCIAL STATEMENTS 2019, 2020 NATIONAL BUDGET VOLUME 1 ECONOMIC AND DEVELOPMENT POLICIES
Confusion over PNG's reported request for Chinese help with debt
Australia willing to assist Papua New Guinea on debt refinancing: minister
Treasurers Statement “January to May 2019 – Fiscal Position”
MID-YEAR ECONOMIC AND FISCAL OUTLOOK REPORT
SECOND DAY Wednesday 26 June 2019 DRAFT HANSARD
MID-YEAR ECONOMIC AND FISCAL OUTLOOK REPORT 2019 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 Papua New Guinea

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