Completed Mixed AidData Chinese Aid

China Eximbank provides $129.8 million preferential buyer's credit for the Two Sections of Highway Rehabilitation Project (Osh-Batken-Isfana 127 km Section and Bishkek-Balykchy 25 km Section)

$129.83M USD

Funder	Export-Import Bank of China (China Eximbank)
Recipient Organization	Government of Kyrgyzstan
Country	Kyrgyz Republic
Start Date	Dec 04, 2012
End Date	Mar 01, 2033
Duration	7,392 days
Number of Grantees	1
Roles	Recipient
Data Source	AidData Chinese Aid
Grant ID	`40195`

Grant Description

China Eximbank provides $129.8 million preferential buyer's credit for the Two Sections of Highway Rehabilitation Project (Osh-Batken-Isfana 127 km Section and Bishkek-Balykchy 25 km Section) On December 4, 2012, China Eximbank and the Government of the Kyrgyz Republic signed a $129,825,916 preferential buyer's credit (PBC) agreement [CHINA EXIMBANK PBC NO. (2012) 54 TOTAL NO. (242)] for the Two Sections of Highway Rehabilitation Project.

📋 Loan / Grant Terms

📅 Maturity20 years

⏳ Grace Period9 years

💹 Interest Rate2%

On April 1, 2013, Kyrgyz Parliament approved the loan agreement.

The proceeds of the loan were to be used by the borrower to finance a September 22, 2012 commercial contract [ID#EXMB/KG/0BI-03] worth $129,825,916.30 between the Kyrgyz Ministry of Transport and Communications and China Road and Bridge Corporation (CRBC).

According to the Government of the Kyrgyz Republic’s Aid Management Platform (AMP), the first loan disbursement (of $32,456,479) took place on September 30, 2013 and the second loan disbursement (of $32,456,500) took place on December 31, 2014. The same source notes that, as of 2015, the loan disbursement rate was 50% ($64,912,979 out of $129,825,916).

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 $131,147,402.32 as of December 31, 2021.

The project sought to rehabilitate the Osh-Batken-lsfana road (specifically, a road section from 220km to 232 km and a road section from 248 km to 360 km) and the Bishkek-Balykchi road (specifically, a road section from 147 km to 172 km). CRBC was the contractor responsible for project implementation.

Construction began in July 2013. The Bishkek-Balykchy road segment was completed on July 22, 2015. The 127 km Osh-Batken-Isfana road section was completed on November 10, 2016. The section from kilometer 271 to kilometer 360 was completed in October 2018.

However, there are some indications that the preferential buyer's credit for the Two Sections of Highway Rehabilitation Project (Osh-Batken-Isfana 127 km Section and Bishkek-Balykchy 25 km Section) financially underperformed vis-a-vis the original expectations of the lender.

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 Two Sections of Highway Rehabilitation Project (Osh-Batken-Isfana 127 km Section and Bishkek-Balykchy 25 km Section).

📋 Staff Comments

The Russian name of this project is Реабилитация двух участков автодорог в КР. Balykchi is sometimes also referred to as Balykchy.
CRBC reports on its website that the length of the Osh-Batken-Isfana road being rehabilitated is 123.06 km, and the length of the Bishkek-Balykchy road being rehabilitated is 23.66 km.
The project identification number in the Government of the Kyrgyz Republic’s Aid Management Platform (AMP) is 8718835227.
The China Eximbank (PBC) loan agreement can be accessed in its entirety via https://www.documentcloud.org/documents/20488728-kgz_2012_421.
The 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.

📚 Sources & References

Реабилитация двух участков автодорог в Кыргызской Республике
Almazbek Atambayev attends opening of Bishkek-Balykchy road
AMP Kyrgyz Republic Record ID 8718835227.pdf
CAREC Corridors Implementation Progress and Priority Actions 2020-2030
China and Kyrgyzstan
CHINA EXIMBANK PBC NO. (2012) 54 TOTAL NO. (242)
China's Foreign Assistance PPT Presentation
DSSI Agreement for the Kyrgyz Republic
Kyrgyz president praises opening of road section built by Chinese company in southern Kyrgyzstan
Kyrgyz Republic AMP
Kyrgyzstan and the Belt and Road Initiative
Osh-Batken-Isfana Road Rehabilitation Project Section km220-km232 and km248-km360
Re: Project-Specific Informa5on from the Kyrgyz Aid Management Pla?orm (Кыргызстандагы жардамдарды башкаруу платформасынан Долбоор боюнча Конкреттүү маалымат)
Rehabilitation and constuction of the Osh-Batken-Isfana road
Rehabilitation of Bishkek-Naryn-Torugart Road
Rehabilitation of two road sections in the Kyrgyz Republic, table, table, Реабилитация двух участков автодорог в КР
吉议会批准中方向吉提供1.298亿美元优买贷款协议 [Kyrgyz Parliament Approves Chinese Export Credit of 129.8 million USD]
孙贺参赞参加“比什凯克-巴雷克奇”公路（147-172公里路段）修复项目竣工仪式
驻吉尔吉斯斯坦大使齐大愚出席援吉道路修复项目竣工仪式
驻吉尔吉斯斯坦大使齐大愚出席援吉道路修复项目竣工仪式 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.

All Grantees

Government of Kyrgyzstan

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