Completed Mixed AidData Chinese Aid

China Eximbank provides $281.1 million buyer’s credit loan for the 1st Stage of the Dushanbe-Khujand-Chanak Road Construction Project (Linked to Record ID#40351)

$281.11M USD

Funder	Export-Import Bank of China (China Eximbank)
Recipient Organization	Tajikistan Ministry of Finance
Country	Tajikistan
Start Date	Jun 15, 2006
End Date	Sep 17, 2029
Duration	8,495 days
Number of Grantees	1
Roles	Recipient
Data Source	AidData Chinese Aid
Grant ID	`39989`

Grant Description

China Eximbank provides $281.1 million buyer’s credit loan for the 1st Stage of the Dushanbe-Khujand-Chanak Road Construction Project On June 15, 2006, at the Shanghai Cooperation Organization (SCO) summit, China Eximbank and the Ministry of Finance of the Republic of Tajikistan signed a $281,105,000 buyer’s credit loan (BLA) agreement [ID#BLA06014] for the 1st Stage of the Dushanbe-Khujand-Chanak Road Construction Project.

The PBC carried the following borrowing terms: a maturity of 20-years, a grace period of 5-years, an interest rate of 2%, a default (penalty) interest rate of 1%, a 0.2% commitment fee, and a 0.2% ($562,210) management fee.

The borrower was expected to use the proceeds of the PBC to finance 95% of the cost of a $295.9 million commercial contract between Tajikistan's Ministry of Transport and China Road and Bridge Corporation (CRBC).

The loan was originally scheduled to disburse in 3 annual tranches: $112.4 million in 2007, $112.4 million in 2008, and $56.2 million in 2009.

The purpose of the project — also known as the Tajikistan-Uzbekistan Highway Rehabilitation/Reconstruction Project — was to reconstruct the 354 km highway connecting Dushanbe with Khujand, the center of the northern province, and the town of Chanak on the border with Uzbekistan.

The project also involved the construction of the 5253 meter Shahristan tunnel (at a cost of $88,424), the 1047 meter Dusti tunnel, the Maikhura tunnel, 39 big and small bridges, and 6 km of avalanche defenses. CRBC was the contractor responsible for project implementation. Construction began on July 11, 2006.

The construction period was originally scheduled to be 38 months in duration. The highway was commissioned in 2010, but work continued on the Shahristan tunnel.

The project was completed on October 27, 2012, with an opening ceremony for the Shahristan tunnel that was attended by President of Tajikistan Emomali Rahmon.

The project reportedly reduced driving times from 12 hours to 4 hours and the Shahristan tunnel was reportedly the longest tunnel in Central Asia when it completed.

To help repay the loan and cover the costs of maintaining the road, the Tajik Government made the highway a toll road in 2010 and allowed the private company Innovative Road Solutions to collect tolls.

📋 Staff Comments

The Russian project title is реабилитацию автомобильной дороги «Душанбе – Чанак» or реабилитации/реконструкции, дороги Таджикистан-Узбекистан (Душанбе - Чапак). The Chinese project title is 塔乌（乌兹别克斯坦）公路.
The China Eximbank loan agreement can be accessed in its entirety (in English and Russian) via https://www.dropbox.com/scl/fi/szwcl32kh4y4h203hyzlc/Tajikistan-2006-China-Eximbank-PBC-for-1st-Stage-of-the-Dushanbe-Khujand-Chanak-Road-Construction-Project-English.pdf?rlkey=5yuov2jrdxetsay01yeeenf6d&dl=0 and https://www.dropbox.com/scl/fi/za0ebi98nyct31g752bio/Tajikistan-2006-China-Eximbank-PBC-for-1st-Stage-of-the-Dushanbe-Khujand-Chanak-Road-Construction-Project-Russian.pdf?rlkey=dw6a7tjotmf60nwmhcujvit89&dl=0 3. This project is linked to Record ID#40351, a RMB 60 million grant offered by the Chinese Government.

📚 Sources & References

主要产品- Major Products
CAREC Corridor Implementation Progress
Planned Actions, and Support Needs TAJIKISTAN
Chairman Zhou Jichang of CCCC Inspects CRBC Tajikistan Office
China as an Emerging Donor in Tajikistan and Kyrgyzstan
China Road без тендера назначена подрядчиком строительства противолавинных галерей на дороге Душанбе-Чанак
China signs Tajik loan deals
CHINA'S FOREIGN POLICY AND ``SOFT POWER'' IN SOUTH AMERICA,ASIA
AND AFRICA
China-built road improves Tajikistan's transport system
China-built road improves Tajikistan's transport system
China’s Strategic Environment and External Relations in the Transition Period
CHINESE INTEREST IN TAJIKISTAN INCREASES
Data Collection Survey On a Road Between Dushanbe and Kurgan-Tyube in the Republic of Tajikistan Final Report
DEVELOPMENT COORDINATION
Dushanbe-Khujand-Chanak highway complete in Nov
Following Up
Implementation of Dushanbe-Chanak road project progressing
INTERNATIONAL MONETARY FUND REPUBLIC OF TAJIKISTAN Staff Report for the 2006 Article IV Consultation
List of Chinese Government-Financed Projects in Tajikistan from the Ministry of Finance via the IMF May 2018
Live: China-built road changes lives in Tajikistan 中国在塔吉克斯坦铺设友谊之路
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
President of Tajikistan Attends the Opening Ceremony of SHAKHRISTAN Tunnel of Tajikistan–Uzbekistan Highway
Project 'Reconstruction of Dushanbe-Chanak road' BLA060014
Repair Project of Tajikistan - Uzbekistan Highway
Road Projects in Tajikistan Impact Its Strategic Geography
Road Projects in Tajikistan Impact Its Strategic Geography
Shahriston Tunnel in Sughd Province Inaugurated
State Debt Report 2009
Status Report on Public Debt of Tajikistan
Strategy for Tajikistan
Tajikistan 2006 China Eximbank PBC for 1st Stage of the Dushanbe-Khujand-Chanak Road Construction
Tajikistan 2006 China Eximbank PBC for 1st Stage of the Dushanbe-Khujand-Chanak Road Construction Project Russian
Tajikistan courts energy investment
Tajikistan-Uzbekistan Highway
Tajikistan: Policy Notes on Public Expenditures
The main works on the Shahriston Tunnel reportedly done to a high standard Read more: https://www.asiaplustj.info/en/news/tajikistan/economic/20130531/main-works-shahriston-tunnel-reportedly-done-high-standard
The meeting of NBT management with China EXIM Bank took place at the National Bank of Tajikistan., КРЕДИТНОЕ СОГЛАШЕНИЕ МЕЖДУ ЭКСПОРТНО - ИМПОРТНЫМ БАНКОМ КИТАЯ И МИНИСТЕРСТВОМ ФИНАНСОВ РЕСПУБЛИКИ ТАДЖИКИСТАН (Контракт № ВLА06014), НА РАЗВИТИЕ ДОРОЖНОГО СТРОИТЕЛЬСТВА И ТРАНСПОРТА В ТАДЖИКИСТАНЕ В ГОДЫ НЕЗАВИСИМОСТИ (1991-2016 гг.), О ратификации кредитных соглашений между Министерством финансов Республики Таджикистан и Экспортно-импортным банком Китайской Народной Республики, Отчет о состоянии государственного долга на 2009 год, Отчет о состоянии государственного долга на 2015 год, Реабилитация автодороги Душанбе-Чанак (гр.Узбекистан). В том числе: строительство тоннеля Дусти, тоннеля Шахристан, Среднесрочная Программа Государственных Расходов (СПГР
塔吉克斯坦（2019年版) 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.

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Tajikistan Ministry of Finance

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