Completed Mixed AidData Chinese Aid

China Eximbank provides $70 million preferential buyer's credit for the South Kyrgyz Cement Factory Construction Project in Kyzyl-Kiya City

$70.02M USD

Funder	Export-Import Bank of China (China Eximbank)
Recipient Organization	Bank TuranAlem JSC (BTA)
Country	Kyrgyz Republic
Start Date	Jun 01, 2006
End Date	Sep 05, 2033
Duration	9,958 days
Number of Grantees	1
Roles	Recipient
Data Source	AidData Chinese Aid
Grant ID	`40336`

Grant Description

China Eximbank provides $70 million preferential buyer's credit for the South Kyrgyz Cement Factory Construction Project in Kyzyl-Kiya City In 2006, China Eximbank provided a $70,020,000 preferential buyer's credit (PBC) loan to Turan-Alem Bank (or BTA Bank) — a state-owned bank in Kazakhstan — for the construction of the South Kyrgyz Cement Factory in Kyzyl-Kiya City.

BTA Bank then used the proceeds of the loan to on-lend to the project company (South Kyrgyz Cement CJSC or ЗАО "Южно-Кыргызский Цемент") responsible for the construction of the cement factory. This loan was also guaranteed by BTA Bank.

This project officially broke ground on March 25, 2006, with China CAMC Engineering Co Ltd implementing the project (as the EPC contractor) in partnership with South Kyrgyz Cement CJSC. The plant was expected to have an output of 2500 tons of cement per day and it was slated for completion in 2008. The cement production line was successfully put into operation in September 2009.

The plant was officially commissioned on July 12, 2009.

Although there was turmoil in the country including riots near the factory, a technical team successfully completed the performance evaluation of the production line and handed over the factory to the owner for management.

📋 Staff Comments

The Chinese project title is 吉尔吉斯斯坦日产5000吨水泥厂项目 or 吉尔吉斯斯坦南奥什克孜勒基亚水泥厂项目. The Russian project title is 'Түштүк-Кыргыз цементи' Жабык акционердик коому.
This project is the first that the Chinese government provided a preferential credit within the framework of the Shanghai Cooperation Organisation (SCO). Some sources indicate that the face value of the loan was $77.8 million. However, for the time being, AidData uses the more conservative $70.02 million estimate from BTA Bank.
Turan-Alem Bank (or BTA Bank) was privatized in 2014.

📚 Sources & References

China's CAMC to build cement production line in Kyrgyzstan - report
China's CAMC to build cement production line in Kyrgyzstan - report
吉尔吉斯斯坦共和国总统访问国机集团和中工国际
中国进出口银行完成9亿美元优惠出口买方信贷
中工国际在中亚地区的水泥生产第一单签约
China lends Kyrgyzstan $70 mln under security pact
China's Foreign Assistance PPT Presentation
Bank TuranAlem Backs Cement Plant Construction Project in Kyzyl-Kiya
Chinese Foreign Policy Under Xi, https://www.ifri.org/sites/default/files/atoms/files/ifrichinacentralasiakassenovaengjanuary2008.pdf
China’s Foreign Aid and Investment Diplomacy
Volume II: History and
中国建材报：建国际精品工程创凯盛水泥名牌
南吉尔吉斯水泥厂开工简讯
Bank Turan Alem JSC will be the guarantor of the project financing for the construction of the Kyzyl-Kicement plant
China Eximbank Supports Economic and Social Development of SCO Members for Regional Harmony, 2009, 2006, 5,000T/D CEMENT PLANT IN KYRGYZSTAN
Kazakh state fund sells off stake in BTA Bank
Kazkom and BTA received awards of J.P.Morgan for high quality of payment processing 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.