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China gets light rail loan from Japanese bank

(Xinhua)
Updated: 2009-02-27 11:24

Chinese Ministry of Finance signed an agreement Thursday with the Japan Bank for International Cooperation (JBIC) for one light rail project loan of 22.75 billion yen ($234.3 million).

The ministry said the loan will be used for equipment purchase in the first-phase construction of the No 3 light rail project in Chongqing municipality in southwest China.

According to the ministry, the city's first-phase construction of the No 3 light rail project will cost 5.815 billion yuan ($851 million). The drawdown period of the loan will last till Dec 31, 2011, to be paid back over 16.5 years, including a grace period of three years.

The ministry said so far China has received about $14.6 billion loans from JBIC, a government financial institution facilitating cross-border economic cooperation, for 84 projects.