FY2004 Yen Loan to China

March 29, 2005

  1. The Government of Japan has decided to extend to the Government of the People's Republic of China a Yen Loan totaling 85,875 million yen, with a view to extending assistance based on the Economic Cooperation Program for China. Notes to this effect were exchanged on March 29 (Tue) in Beijing between Mr. Koreshige Anami, Japanese Ambassador to China, and Mr. Wu Dawei, Vice-Minister of Foreign Affairs of China.

    The following are the projects and their amounts:
    (1) Shaanxi Water Environmental Improvement Project up to 27,264 million yen
    (2) Hunan Changsha Water Environmental Improvement Project up to 19,964 million yen
    (3) Guizhou Guiyang Water Environmental Improvement Project up to 12,140 million yen
    (4) Inner Mongolia Baotou Atmospheric Environmental Improvement Project up to 8,469 million yen
    (5) Sichuan Eco-environmental Construction Project up to 6,503 million yen
    (6) Xinjiang Yining Environmental Improvement Project up to 6,462 million yen
    (7) Inner Mongolia Higher Education Project up to 5,073 million yen
      Total Amount up to 85,875,million yen

  2. Outline of the Projects
    (1) Shaanxi Water Environmental Improvement Project
    This project is intended to improve the overall water environment of Shaanxi Province, by improving sewage treatment and other facilities in Xian City to reduce water pollution as well as by improving waterworks in other cities in the Province which are suffering from bad-quality water and water shortages.
    (2) Hunan Changsha Water Environmental Improvement Project
    This project is intended to improve the overall water environment of the Changsha City, by improving sewage treatment and by developing new water sources to improve the water supply capacity.
    (3) Guizhou Guiyang Water Environmental Improvement Project
    This project is intended to reduce water pollution by improving sewage treatment facilities in Guiyang City in Guizhou Province.
    (4) Inner Mongolia Baotou Atmospheric Environmental Improvement Project
    This project is intended to reduce contaminants in the air to improve the atmospheric environment by improving natural-gas-supply facilities in Baotou City in Inner Mongolia for converting energy sources from coal to natural gas.
    (5) Sichuan Eco-environmental Construction Project
    This project is intended to carry out afforestation and other works to reduce soil runoff and to preserve the ecosystem.
    (6) Xinjiang Yining Environmental Improvement Project
    This project is intended to improve the overall living environment of Yining City in the Xinjiang Uygur Autonomous Region, by improving heat supply facilities, natural gas supply facilities, water supply and sewerage systems, and waste disposal facilities and also by carrying out afforestation.
    (7) Inner Mongolia Higher Education Project
    This project is intended to improve the educational facilities of eight universities in the Inner Mongolia Autonomous Region and provide their teachers with training in Japan.

  3. Terms and conditions of the loan:

    The assistance will be for the following: the sewage and training part in (1) and (2); (3); (4); (5); the aid excluding the water supply in (6); and the training in (7)
    1. Interest rate: 0.75% per annum (preferential terms)
    2. Repayment period: 40 years (including a 10-year grace period)
    3. Procurement method: general untied

    The aids will cover the following: the assistance excluding the sewage and training part of (1); the water supply in (2) and (6); and the assistance for educational facilities in (7).
    1. Interest rate: 1.5% per annum (general terms)
    2. Repayment period: 30 years (including a 10-year grace period)
    3. Procurement method: general untied

  4. With this loan, the total amount of Yen loan that Japan has extended to China including Special Yen Loan will be 3,133,056 million yen on an Exchange-of-Notes basis.
(END)


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