Completed Mixed AidData Chinese Aid

China Eximbank provides $389.7 million preferential buyer’s credit for Datka-Kemin 500kv Transmission Line Construction Project (Linked to Record ID#40431, #96098)

$389.8M USD

Funder	Export-Import Bank of China (China Eximbank)
Recipient Organization	Ministry of Finance of the Kyrgyz Republic
Country	Kyrgyz Republic
Start Date	Jun 05, 2012
End Date	Apr 27, 2030
Duration	6,535 days
Number of Grantees	1
Roles	Recipient
Data Source	AidData Chinese Aid
Grant ID	`39619`

Grant Description

China Eximbank provides $389.7 million preferential buyer’s credit for Datka-Kemin 500kv Transmission Line Construction Project On February 24, 2012, the Ministry of Finance of the Kyrgyz Republic submitted a loan application to China Eximbank for the Datka-Kemin 500kv Transmission Line Construction Project.

Then, on June 5, 2012, China Eximbank and the Ministry of Finance of the Government of the Kyrgyz Republic signed a $389,795,000 preferential buyer’s credit (PBC) agreement [CHINA EXIMBANK PBC NO. (2012) 20 TOTAL NO. (208)] for the Datka-Kemin 500kv Transmission Line Construction Project. The PBC (loan) agreement was the ratified by the Kyrgyz Parliament June 19, 2012.

📋 Loan / Grant Terms

📅 Maturity20 years

⏳ Grace Period9 years

💹 Interest Rate2%

The State Agency for Budget Credit Management under the Ministry of Finance of the Government of the Kyrgyz Republic on-lent the proceeds of the loan (PBC) to a state-owned company known as National Electric Grid of Kyrgyzstan, OJSC (or Joint Stock Company “National Grid of Kyrgyzstan” or OJSC Natsionalnaya Elektricheskaya set Kyrgyzstana or OJSC NES of Kyrgyzstan or NEGK).

The proceeds of the loan (PBC) were to be used by the end-user (ultimate borrower) — National Electric Grid of Kyrgyzstan, OJSC — to finance 100% of the cost of its $389,795,000 commercial (EPC) contract with Tebian Electric Apparatus Stock Co., Ltd. (TBEA), which was signed on February 23, 2012.

According to the Government of the Kyrgyz Republic’s Aid Management Platform (AMP), the first loan disbursement (of $77,959,000) took place on August 30, 2012 (to support a 20% advance payment to the EPC contractor), the second loan disbursement (of $5,982,563) took place on December 17, 2012 (to support a payment for the manufacturing and supply of equipment); the third loan disbursement (of $159,942,800) took place on December 31, 2013; and the fourth loan disbursement (of $100,489,000) took place on December 31, 2014.

The same source notes that, as of 2014, the loan disbursement rate was 88.3% (and total loan disbursements amounted to $344,373,400).

According to internal data that the Kyrgyz Ministry of Finance shared with AidData in July 2022, this loan achieved a disbursement rate of 100% as of December 31, 2021 and its amount outstanding was $393,713,137.12 as of December 31, 2021.

The purpose of the project was to (a) construct a 288 km, 500kv power transmission line from Datka to Kemin and (b) construct a substation in Kemin. TBEA was the general EPC contractor responsible for implementation. Project implementation commenced on August 20, 2012 and the project reached completion on August 28, 2015.

The official inauguration of the transmission line took place on September 1, 2015.

However, the Datka-Kemin 500kv Transmission Line Construction Project underperformed from a revenue generation and debt repayment perspective.

On December 9, 2019, a Settlement Agreement was signed by Joint Stock Company “National Grid of Kyrgyzstan” and the State Agency for Budget Credit Management under the Ministry of Finance of the Kyrgyz Republic.

Under the terms of the Settlement Agreement, overdue repayments (arrears) were included in an updated repayment schedule (amortization table) without any change to the loan’s final maturity date.

According to the audited financial statement of Joint Stock Company “National Grid of Kyrgyzstan” for the year that ended on December 31, 2019, ‘[t]his restructuring […] led to significant changes in the amortized cost of loans from the Export-Import Bank of China.’ Then, on or around July 1, 2021, China Eximbank and the Government of the Kyrgyz Republic signed a debt suspension agreement [No.

DSSI2021PHASE2-029].

Under the terms of the agreement (captured via Record ID#96102), the lender agreed to suspend principal and interest payments due between July 1, 2021 and December 31, 2021 under the preferential buyer's credit agreement for the Datka-Kemin 500kv Transmission Line Construction Project. The original loan (PBC) that was issued on June 5, 2012 is captured via Record ID#39619.

The December 2019 rescheduling is captured via Record ID#96098. The July 2021 rescheduling is captured via Record ID#96102.

📋 Staff Comments

The Chinese project title is 达特卡—克明输变电项. The Russian project title is Строительство линии электропередачи 500 кВ «Датка-Кемин» и подстанции 500 кВ «Кемин».
The project identification number in the Government of the Kyrgyz Republic’s Aid Management Platform (AMP) is 871882142.
The July 2021 debt suspension agreement [No. DSSI2021PHASE2-028] can be accessed in its entirety via https://www.dropbox.com/s/huwa695j3w9hwig/DSSI%20Agreement%20for%20Kyrgyz%20Republic.pdf?dl=0.
A detailed loan repayment reschedule (that the Kyrgyz Ministry of Finance shared with AidData in July 2022) can be accessed via https://www.dropbox.com/s/xg0cmomv0qk7cbj/Repayments.xlsx?dl=0. The schedule reflects actual repayments through December 31, 2021 and planned/scheduled repayments after December 31, 2021. Note also that (a) China Eximbank granted the Government of Kyrgyz Republic a a deferral of payments for the period from August 2021 to December 2021, and (b) the deferred principal and interest amounts are included in the main body of the debt and the repayment amounts of the deferrals (with additional accrued interest for granting a deferment) are already included in the repayment schedule.
The China Eximbank (PBC) loan agreement can be accessed in its entirety via https://www.dropbox.com/s/p9dn2fd3e1lxz8e/PBC%20LOAN%20AGREEMENT%20FOR%20CONSTRUCTION%20OF%20DATKA-KEMIN%20500KV%20%20TRANSMISSION%20LINE%20PROJECT%20.doc?dl=0.
The Datka-Kemin 500kv Transmission Line Construction Project is linked to another China Eximbank-financed Southern Power Grid Reconstruction Project (captured via Project ID#40431), which supported the construction of the 500 kV Datka power station.

📚 Sources & References

Kyrgyzstan signs $380 mln loan agreement with China for construction of Datka-Kemin power transmission line – PM Babanov
特变电工承建的吉国家级大项目开工仪式日前举行
王开文大使出席吉尔吉斯斯坦“达特卡—克明”输变电项目开工仪式
AMP Kyrgyz Republic Record ID 871882142.pdf
China and Kyrgyzstan sign agreements in four spheres, including construction of Datka-Kemin electric power-lines
China Exim Bank to finance power line in Kyrgyzstan for $390 mln
China improving Kyrgyz electrical grid
China ready to build $342 mln electricity transmission line in Kyrgyzstan
China to help Kyrgyzstan to gain electricity independence from Uzbekistan
China's Foreign Assistance PPT Presentation
Chinese-funded project gives Kyrgyzstan its first independent power transmission line
CONSTRUCTION OF POWER LINES AND SUBSTATIONS
CONSTRUCTION OF POWER LINES AND SUBSTATIONS
Datka-Kemin line contract agreement for $389.74 million signed so far – head of National Electric Grid of Kyrgyzstan
DEVELOPMENT COORDINATION
DSSI Agreement for the Kyrgyz Republic
Electricity Industry and Legal Update
How many grants and loans Kyrgyzstan received in 2012? (Part I)
In-Depth Review of the Energy Efficiency Policy of the Kyrgyz Republic
In-Depth Review of the Energy Efficiency Policy of the Kyrgyz Republic
Joint construction of Economic Belt Silk Road and Maritime Silk Road of the 21st century: the path to the common development and prosperity
Kyrgyz company having difficulty servicing Chinese loan
Kyrgyz Republic AMP
Kyrgyz Republic High Level Development Conference (2013)
Kyrgyz Republic: Gold is Not Enough
Kyrgyz
Chinese presidents sign joint declaration
Kyrgyzstan Declares Energy Independence
Kyrgyzstan gains electricity independence
Kyrgyzstan hails ‘historic’ China-financed power line
National Electric Grid of Kyrgyzstan OJSC - Financial Statements for the year ended 31 December 2019 with independent auditor's report
OJSC Financial Statements for the year ended Dec 31, 2013
PREFERENTIAL BUYER S CREDIT LOAN AGREEMENT
Project Administration Manual:Kyrgyz Republic: Toktogul Rehabilitation Phase 2 Project
Re: Project-Specific Informa5on from the Kyrgyz Aid Management Pla?orm (Кыргызстандагы жардамдарды башкаруу платформасынан Долбоор боюнча Конкреттүү маалымат)
Rehabilitation of Bishkek-Naryn-Torugart Road, table, table, table, Строительство линии электропередачи 500 кВ «Датка-Кемин» и подстанции 500 кВ «Кемин», Строительство линии электропередачи 500 кВ «Датка-Кемин» и подстанции 500 кВ «Кемин»
中吉共建“一带一路” 五大精品工程
中国企业承建的吉国“达特卡-克明”输变电线项目举行竣工仪式
吉尔吉斯斯坦克明500千伏变电站工程
吉总理签署关于“达特卡-克明“输变电线项目的政府令 [Kyrgyz Prime Minister Signs 'Datka-Kemin' Power Transmission Line]
特变电工“点亮”夏夜里的吉尔吉斯斯坦
达特卡－克明输变电工程助推吉尔吉斯斯坦电力发展
驻吉尔吉斯斯坦使馆临时代办吴长虹出席达特卡-克明输变电工程竣工仪式 Loan applications and disbursements are still being received and processed as the projects continue to evolve. Ongoing monitoring and evaluation are in place to ensure project continuity.