China Eximbank provides RMB 200 million government concessional loan for Gas Field Drilling Equipment Acquisition and Installation Project

📋 Staff Comments

1. This project is also known as the Dauletabad-3 Gas Deposit Drilling Equipment Project, the Dowletabat-3 Gas Deposit Drilling Equipment Project, and the Daulatabad-3 Gas Deposit Drilling Equipment Project.
2. The Dauletabad–Sarakhs–Khangiran pipeline (also known as Dauletabad–Salyp Yar pipeline) is a natural gas pipeline from the Dauletabad gas field in Turkmenistan to Khangiran in Iran, where it is connected with the Iran Gas Trunkline system. It is significant as it has allowed for the diversification of Turkmenistan's gas export routes, doubling the nation's export of gas to Iran. The decision to build the pipeline was made in July 2009. The pipeline was completed in October 2009 and was inaugurated on January 6, 2010. The total length of the pipeline is 182 km. It starts at the Dauletabad gas field where it branches off from the Dovletabad–Deryalyk pipeline (Central Asia – Center gas pipeline system). It runs 30.5 km (19.0 mi) to Sarakhs, where it crosses the Iran–Turkmenistan border. From there, the 35-km (22 mi) long section transports gas to the Shahid Hasheminejad (Khangiran) Gas Refinery in Khangiran, Khorasan Province.
3. According to the World Bank's Debtor Reporting System (DRS), the weighted average grace period of all official sector lending from all Chinese creditors to government and government-guaranteed borrowing institutions in Turkmenistan was 4.6-years in 2006. AidData estimates the grace period of the China Eximbank loan by using this figure. See https://www.dropbox.com/scl/fi/k9rnqdib5fdz2vv9fjc4k/August-2024-IDS-Download-Turkmenistan-s-Borrowings-and-Borrowing-Terms-from-Official-Sector-PRC-Creditors.xlsx?rlkey=l952qne9jm8bstvvf6ub9ybiq&dl=0 4. Data on amounts outstanding can be accessed via https://tfeb.gov.tm/web/upload/global/2110%20SBFEA_2019_%28eng%29_signed%20%281%29.pdf and https://tfeb.gov.tm/web/upload/global/en%202012.pdf and https://tfeb.gov.tm/web/upload/global/TVEB_eng_2013_final.pdf and https://www.tfeb.gov.tm/page/41

📚 Sources & References

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• August 2024 IDS Download -- Turkmenistan's Borrowings and Borrowing Terms from Official Sector PRC Creditors 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.