Completed Mixed AidData Chinese Aid

China Eximbank provides $267.2 million buyer's credit loan for 500 kV North-South Power Transmission Line Project (Linked to Record ID#39984, #70910)

$267.22M USD

Funder	Export-Import Bank of China (China Eximbank)
Recipient Organization	Tajikistan Ministry of Finance
Country	Tajikistan
Start Date	Dec 21, 2006
End Date	Jul 08, 2027
Duration	7,504 days
Number of Grantees	1
Roles	Recipient
Data Source	AidData Chinese Aid
Grant ID	`39644`

Grant Description

China Eximbank provides $267.2 million buyer's credit loan for 500 kV North-South Power Transmission Line Project In March 2006, the Government of Tajikistan and the Export-Import Bank of China signed an MoU for various projects proposed by the Government of Tajikistan.

Then, on December 21, 2006, the Export-Import Bank of China signed a $267,219,451.35 buyer’s credit loan [BLA06016] agreement with the Ministry of Finance of the Republic of Tajikistan for the 500 kV North-South Power Transmission Line Project.

📋 Loan / Grant Terms

💰 Loan Amountcarried the following borrowing terms: a 20-year maturity

📅 Maturity20 years

⏳ Grace Period5 years

💹 Interest Rate2%

The borrower was expected to use the proceeds of the PBC to finance 95% of the cost of a $281,283,633 commercial contract [ID#TOJSC/TBEA-2006/002] between Open Joint Stock Holding Company (OHSHC) “Barqi Tojik” -- a state-owned enterprise in Tajikistan responsible for the generation, transmission, and distribution of electricity and thermal energy -- and TBEA, which was signed on April 19, 2006 and amended on May 19, 2006.

The Government of Tajikistan used the proceeds of the PBC to on-lend (through subsidiary loan agreement (No.

BLA06015, #6015) to Open Joint Stock Holding Company (OHSHC) “Barqi Tojik” -- a state-owned enterprise in Tajikistan responsible for the generation, transmission, and distribution of electricity and thermal energy -- at a 3% interest rate between December 21, 2006 and June 21, 2026.

The loan's amount outstanding was TJS 2,104,674,000 as of December 31, 2016, TJS 2,356,608,000 as of December 31, 2017, TJS 2,519,773,000 as of December 31, 2018, TJS 2,588,608,000 as of December 31, 2019, and TJS 2,975,163,000 as of December 31, 2020.

The purpose of the project was to construct a 500 kV electricity transmission line that would connect the northern Sughd region to the national grid.

The project also expected to facilitate the effective dispatching of electricity between Dushanbe and Khujand, completely solve the problem of power shortage in the south during the dry season in winter, build a transmission channel for the implementation of the Tajik Hydropower Strategy, improve the safety, stability, and reliability of the power grid, and reduce the loss of electricity through transmission from 14% to 3.2%.

TBEA Co., Ltd. was the contractor responsible for project implementation.

Construction began on September 16, 2006 and the North-South transmission line has been operational since November 29, 2009.

Construction of the 325 km, 500 kV south–north power transmission line reportedly enabled Tajikistan to become independent of the Uzbek power transmission network and to distribute electricity throughout the country.

There are some indications that the China Eximbank loan for the 500 kV North-South Power Transmission Line Project may have underperformed vis-a-vis the original expectations of the lender.

According to a 2021 IMF report, ‘[OHSHC “Barqi Tojik”] has significant arrears to the government on [foreign exchange] denominated loans.

The government on-lends concessional [foreign exchange] loans […] from multilateral and bilateral agencies to [OHSHC “Barqi Tojik”] on non-concessional terms. These loans are denominated in [foreign exchange] and are intended to develop the energy infrastructure.

However, these debts are not serviced fully, resulting in [foreign exchange] arrears to the government.’ A 2021 report by the International Energy Agency (IEA) elaborated on this point, explaining that ‘[a] high rate of uncollected payments for electricity use due to illegal connections, power theft and outdated metering infrastructure contribute to the worsening financial health of Barki Tojik.’ Then, in March 2023, the IMF published a report, which noted that ‘[I]n 2021 the SOE sector […] kept accumulating debt service losses, where within a year the amount of debt overdue payments […] increased from TJS 14 billion to TJS 17 billion (17.1 percent of GDP).

Some 93 percent of accumulated overdue debt belongs to [OHSHC “Barqi Tojik”].’

📋 Staff Comments

The Russian project title is Строительство ЛЭП 500 кВ “Юг-Север” or строительстве линии высоковольтной электропередачи 500 кВ 'Юг-Север'. The Chinese project title is 塔吉克斯坦南北220—500kV输变电成套工程.
China Eximbank claims that this project was financed by preferential buyer's credit in the '重大项目 Major Projects' source.
This project is linked to Record ID#70910, which captures a $51 million loan from China Eximbank in 2009 for both the 500 kV North-South Power Transmission Line project and a 220 kV Lolazor-Khatlon Transmission Line Project. The original China Eximbank loan commitment for the 220 kV project in 2006 is captured via Record ID#39984.
One official source identifies the loan commitment date as June 14, 2006 (see http://portali-huquqi.tj/publicadliya/view_qonunhoview.php?showdetail=&asosi_id=6939).
The BLA (loan) agreement can be accessed in its entirety (in English and Russian) via https://www.dropbox.com/scl/fi/n5otrekub3voqy4ww9wj4/Tajikistan-2006-China-Eximbank-PBC-for-500-kV-North-South-Power-Transmission-Line-Project-Russian.pdf?rlkey=392cfxvqneyudl0huqlx1uadz&dl=0 and https://www.dropbox.com/scl/fi/nqyuyqdg0ew9dgrv93ewv/Tajikistan-2006-China-Eximbank-PBC-for-500-kV-North-South-Power-Transmission-Line-Project-English.pdf?rlkey=78pb881yqiyt0lvcpiia2zd89&dl=0

📚 Sources & References

2017 Bond Prospectus
Barqi Tojik Consolidated financial statements For the year ended 31 December 2015
Barqi Tojik Consolidated Financial Statements for year ended December 31, 2020
Barqi Tojik Consolidated Financial Statements for year ended December 31, 2021
Barqi Tojik Consolidated Financial Statements for year ended December 31, 2022
Bilteral cooperation
BRI in Central Asia: Energy Connectivity Projects
Case Study: Tajikistan Energy Production and Consumption Sector
China and the Republic of Tajikistan intends to step up implementation of the plan COOPERATION
China as an Emerging Donor in Tajikistan and Kyrgyzstan
Consolidated financial statements for the year ended December 31, 201 8
Consolidated financial statements for the year ended December 31, 2018 and independent auditors’ report
Consolidated Financial Statements for year ended December 31, 2016
Construction of electric main “South-North” to officially commence Saturday
Cross-Border Electricity Trading for Tajikistan: A Roadmap
DEVELOPMENT COORDINATION
Dushanbe NO.2 Thermal Power Plant Stage II Project Completed By TBEA Put Into Operation
Economic Reforms
Helping Tajikistan Build Power “Lifeline”
List of Chinese Government-Financed Projects in Tajikistan from the Ministry of Finance via the IMF May 2018
May 2018 Flat Export from Tajikistan AIMS China Specific Projects
Meeting with the First Vice President of Export-Import Bank of the People’s Republic of China Zhu Hongjie
OPEN JOINT STOCK HOLDING COMPANY “BARQI TOJIK” Consolidated financial statements for the year ended December 31, 2017 and independent auditors’ report
Power Utility Financial Recovery Program-for-Results (P168211) Program Technical Assessment Final Report
Project Construction of 500 kV OHL South-North
Reconnection to Central Asian Power System Project: Development Coordination
REPUBLIC OF TAJIKISTAN SELECTED ISSUES
Republic of Tajikistan: 2006 Article IV Consultation—Staff Report
Republic of Tajikistan: 2022 Article IV Consultation-Press Release; Staff Report; and Statement by the Executive Director for the Republic of Tajikistan
Republic of Tajikistan: Wholesale Metering and Transmission Reinforcement Project
Status Report on Public Debt of Tajikistan
Strategy for Tajikistan
Tajikistan 2006 China Eximbank PBC for 500 kV North-South Power Transmission Line Project English
Tajikistan 2006 China Eximbank PBC for 500 kV North-South Power Transmission Line Project Russian
Tajikistan – Power Generation and Distribution
TAJIKISTAN'S WHOLE 220kV-500kV POWER TRANSMISSION AND TRANFORMATION PROJECT
Tajikistan: Policy Notes on Public Expenditures
Test of power grid Lolazor-Khatlon conducted last Saturday
Wen arrived in Dushanbe to visit, Аудит отчетности ОАХК 'Барки Точик' по МСФО за 2020 год, ЛЭП «юг-север» станет ключевым звеном в энергосистеме Таджикистана, - президент РТ, О ратификации кредитных соглашений между Министерством финансов Республики Таджикистан и Экспортно-импортным банком Китайской Народной Республики, Реализация стратегии ГУП «Таджикская алюминиевая компания» (ТАЛКО) по созданию базовых условий самообеспечения, Таджикские энергетики отмечают высокую эффективность проекта ЛЭП «Юг – Север 500 кВ», “罗拉佐尔－哈特隆”和“南北”输变电线的建成——塔吉克斯坦电网全国联网的标志
中方承建的塔吉克斯坦输变电成套项目工程贯通
塔吉克斯坦500千伏南北输变电工程
特变电工承建塔国输变电项目工程提前竣工
重大项目 Major Projects 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.

All Grantees

Tajikistan Ministry of Finance

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