The Export-Import Bank of China (China Exim Bank) has agreed to provide credit of up to US$15.5 million to the China Electric Power Technology Import and Export Corp to help it construct a BOT (build-operate-transfer) hydropower project in the Kingdom of Cambodia.

The China Exim Bank and the electric power company signed the major loan agreement in Beijing on Saturday.

The loan, consisting of US$4.5 million and 91.5 million yuan (US$11.0 million), will be used to construct the hydropower project, which has been named the Kirirom I Hydropower Plant Rehabilitation Project, the first overseas BOT project by China's power industry, said Ye Yingchun, president of the China Electric Power Technology Import and Export Corp.

The project, which will use a total investment of US$19.4 million, will be able to generate 64 million kilowatt hours of electricity a year after completion.

"The Chinese side will run the project for 30 years and then transfer control to the Cambodian government,'' Ye said.

The project has played an important role in increasing the exports of China's machinery and electronics products and beefing up friendly bilateral ties between China and Cambodia, he said.

Yang Zilin, president of the China Exim Bank, said his bank has always supported the country's exports of electronics, machinery and high-tech products, since his bank is a major state exports credit institution.

"The China Exim Bank will beef up its efforts to support Chinese companies overseas," Yang said. "We plan to help more enterprises carry out their export strategies and boost exports."

The bank has already granted 30 billion yuan (US$3.6 billion) in credit this year, 12 percent more than last year.

The president earlier said a number of financial measures including credit, preferential loans and guarantees will be taken to help strong enterprises set up overseas plants, conduct processing trade overseas and resources exploration projects.

More representative offices will be established this year and services will be improved to facilitate its core businesses, he said.

The bank played an active role last year in underpinning the country's exports. It lent 26.8 billion yuan (US$3.2 billion) during the year, supporting exports worth US$10.3 billion in contractual value.

The bank also helped exporting enterprises win orders and circumvent financial risks.

(China Daily 12/11/2000)