PROJECT FINANCING and EPC CONTRACTS

The proposed loans find their origin in initiatives launched by the Chinese Government, which, through selected state and parastatal companies, has given to these latter the possibility of committing large capitals and considerable human resources for the construction of social projects in each country of the world in compliance with the provisions of the ECA (Export Credit Agency) of China.

The capital comes from state assets managed by the major Chinese banks competent in this type of operations (Exim Bank, China Development Bank, Bank of China) through the direct intervention of   the largest state insurance company, SINOSURE, as main intermediary for approval guarantees to protect the main Chinese partners, main actors in the process.

Loan contracts are defined between the “Promoter/Developer” of the project guaranteeing the repayment of the loan and the appointed Chinese bank.

It is useful to specify that the type of proposed Financial provides for the disbursement of funds intended solely for the “Construction of the Project“, therefore corresponding to the amount of the EPC contract between the “Promoter/Developer” of the project and the selected General Contractor.

The flows, therefore, move directly from the Chinese banks in favor of the General Contractor in charge of carrying out the project and are not credited directly to the promoter.

All Preliminary Studies and Technical Studies are the responsibility and charge of the Promoter/Developer.

NEW Since February 19th, 2021, as guarantee of loan reimbursement, Confirmed and Irrevocable, active for all duration of reimbursement period SBLC (Stand by Letter of Credit) is accepted.
In this case, the amount of the loan could cover all complementary charges (studies, for example, even if obligatory anticipated by the promoter during project preliminary phases) and not only project construction ones.

If the “Promoter” of the project has opted for the FINANCING + EPC package option, the realization of the works will be entrusted to selected large Chinese contractors specialized in the fields of  competence  of each specific project.