Question No. 904

Elizabeth May: With regard to the loan Canada provided to China (agreed upon on November 26, 1996, and authorized by Parliament though the Supplementary Estimates in Appropriation Act No. 4, 1995-96), through Export Development Canada’s (EDC) Canada Account in the sum of $1.5 billion CAD, as part of the agreement to sell to China two Atomic Energy of Canada Limited CANDU-6 reactors for Phase III of the Qinshan project at Hangzhou Bay in Zeijiang Province, China: (a) for all monies loaned to China as part of this agreement, (i) what Canadian agency, department, or crown corporation was responsible, (ii) what was the total sum of the loan, (iii) what is the scheduled due date of the loan and on what date did the term commence, (iv) what is the current repayment status of the loan, (v) what portion of the loan has been repaid, (vi) what is the outstanding balance of the loan, (vii) what is the value of the interest to be accrued over the full term of the loan; (b) if any loan associated with this agreement has not been repaid by China in accordance with the original terms of the agreement, (i) what recourse demands have been made, (ii) what further actions has the government, or its departments, agencies, or crown corporations, taken to recover money lent, (iii) as a result of any non-payment by the debtor, what, if any, funds have been paid to EDC from the Consolidated Revenue Fund; (c) what studies, reviews, or audits have been conducted by the government of the loan guarantee associated with this agreement, including by (i) the Department of Foreign Affairs and International Trade, (ii) EDC, (iii) the Department of Finance; and (d) for each study, review, or audit, (i) what are its contents, (ii) on what date(s) was it conducted, (iii) what actions or decisions were taken by the government or its agencies or departments in response?

Hon. Ed Fast: Mr. Speaker, in response to (a)(i), for all monies loaned to China as part of this agreement, Export Development Canada, EDC, entered into a loan agreement in an amount of $1.5 billion in accordance with the terms and conditions of a ministerial authorization implementing a decision of cabinet. In response to (a)(ii) the total sum of the loan was $1,497,354,054. In response to (a)(iii) the scheduled due date of the loan was July 20, 2018, and the commencing date was January 12, 1997. In response to (a)(iv) and (v), the loan has been fully repaid. In response to (a)(vi), there is no outstanding balance of the loan. In response to (a)(vii), the value of the interest accrued over the term of the loan was $414,169,012.51 in U.S. dollars.

Regarding (b), it is not applicable.

Regarding (c)(i) and (iii), they are not applicable. In response to (c)(ii), EDC did not conduct any special studies, reviews or audits aside from its standard due diligence practices.

Regarding (d), it is not applicable.