Completed Development AidData Chinese Aid

China Development Bank provides EUR 260 million loan for 399.6MW Minsk No. 5 Thermal Power Plant Upgrading Project

€260M EUR

Funder	China Development Bank (CDB)
Recipient Organization	Government of Belarus
Country	Belarus
Start Date	May 06, 2009
End Date	Feb 21, 2027
Duration	6,500 days
Number of Grantees	1
Roles	Recipient
Data Source	AidData Chinese Aid
Grant ID	`42183`

Grant Description

China Development Bank provides EUR 260 million loan for 399.6MW Minsk No. 5 Thermal Power Plant Upgrading Project On May 6, 2009, China Development Bank and the Government of Belarus signed an EUR 260 million loan agreement for the Minsk No. 5 Thermal Power Plant Upgrading Project.

📋 Loan / Grant Terms

📅 Maturity10.7471 years

⏳ Grace Period3.0941 years

💹 Interest Rate6.1693%

However, it is known that the Government of Belarus issued a sovereign guarantee in support of the loan.

It also known that the Government of Belarus on-lent the loan proceeds to a Belarusian state-owned energy company called Minskenergo RUE ( "Минскэнерго").

The proceeds of the loan were then used by Minskenergo RUE to finance a commercial (EPC) contract [№ 08ВY01GTI1EZG0005/144-и] worth EUR 208,274,600 that it signed with China National Corporation for Overseas Economic Cooperation (CCOEC) on September 29, 2008.

The purpose of the project was to upgrade the 399.6MW Minsk-5 CHP CCGT Power Plant (Минская ТЭЦ-5), which is located at Pukhovichy district within the city of Minsk (Latitude= 53.612, Longitude= 27.954). North China Electric Power Engineering Company was the contractor responsible for project design.

CCOEC (the EPC contractor) and Minskenergo RUE (a Belarusian state-owned power company) were jointly responsible for project implementation. At the end of December 2008, North China Electric Power Engineering Company completed the design of the project. Construction then began in 2009. The 399.6 MW power generation unit was successfully connected to the power grid on December 25, 2011.

Then, it passed a 72-hour full-load trial on February 13, 2012. A project completion ceremony took place on February 17, 2012.

📋 Staff Comments

This project is also known as the First Stage of the Minsk CHPP-5 Construction Project, the First Phase of the Minsk CHPP-5 Construction Project, and the 399.6MW Minsk No. 5 Thermal Power Plant Upgrading Project. The Chinese project title is 白俄罗斯明斯克5号电站设 or 白俄罗斯明斯克5号热电站改造项目 or 明斯克5号热电站一期改建工程. The Russian project title is Минская ТЭЦ-5 or проектапервой очереди строительства Минской ТЭЦ-5.
Some official sources suggest that the commercial (EPC) contact was signed on October 29, 2008, and other official sources suggest that it was signed on September 29, 2008.
The Overseas Development Finance Dataset published by Boston University’s Global Development Policy Center in December 2020 identifies the face value of the CDB loan that supported this project as $260 million. It also identifies the loan commitment year as 2008. However, multiple official sources record the face value of the loan as EUR 260 million and identify the loan signature date as May 6, 2009. Therefore, AidData records a loan commitment value of EUR 260 million and a loan commitment year of 2009.
The estimated borrowing terms (6.1693% interest rate, 3.0941-year grace period, 10.7471-year maturity) are drawn from the World Bank's Debtor Reporting System (DRS). See https://www.dropbox.com/s/ab8qt4n6jijcbhd/IDS_Average%20interest%20on%20new%20external%20debt%20commitments.xlsx?dl=0 and https://www.dropbox.com/s/949n5rctiue6d7c/IDS_Average_grace_period_and_maturity_on_new_external_debt_commitments.xlsx?dl=0

📚 Sources & References

Belarus
China sign ˆ260m loan agreement to upgrade Minsk CHP-5 plant
President makes working trip to Minsk Oblast, Об утверждении перечня финансируемых за счет внешних государственных займов и внешних займов, привлеченных под гарантии Правительства Республики Беларусь, инвестиционных проектов и предназначенных для реализации таких проектов технологического оборудования и запасных частей к нему, которые при ввозе на территорию Республики Беларусь освобождаются от таможенных пошлин и налога на добавленную стоимость
CТРОИТЕЛЬСТВО ВТОРОГО ЭНЕРГОБЛОКА МИНСКОЙ ТЭЦ-5 БУДЕТ ЗАВЕРШЕНО К КОНЦУ 2011 ГОДА
白俄罗斯总统卢卡申科出席中白新建合作项目启动仪式, Об уточнении отдельных показателей республиканского бюджета на 2018 год
Cooperation between China Development Bank and Belarus’ banks discussed in Beijing
Economic cooperation between Republic of China and Republic of Belarus in the context of implementing the One Belt
One Road Foreign Economic Strategy
Ambassador Cui Qiming inspects the Minsk No. 5 thermal power station renovation project
Minsk No.5 Thermal Power Plant Rehabilitation Project in Belarus (abbreviated as Minsk 5 Project).
Investment activity in the Republic of Belarus, ПЕРЕЧЕНЬвнешних государственных займов, обслуживание и погашение которых осуществляются с привлечением средств республиканского бюджета ( LIST of external government loans, servicing and repayment of which are carried out with the involvement of funds from the republican budget), О нас в прессе - НА ПОРОГЕ ПЕРЕМЕН., Делегация представителей Государственного банка развития Китая посетила филиал «ТЭЦ-5» РУП «Минскэнерго»
International financial institutions and invest. foundations in Belarus
Minsk-5 CHP CCGT Power Plant is located at Pukhovichy district
Minsk
Belarus. Location coordinates are: Latitude= 53.612
Longitude= 27.954. This infrastructure is of TYPE Gas Power Plant with a design capacity of 780 MWe. It has 2 unit(s). The first unit was commissioned in 1999 and the last in 2012. It is operated by RUE Minskenergo., УКАЗ ПРЕЗИДЕНТА РЕСПУБЛИКИ БЕЛАРУСЬ
Power Construction-China National Corporation for Overseas Economic Cooperation
Cao Weizhou Headed NPC Delegation to Inspect CCOEC’s Minsk 2 and Minsk 5 Project
通用技术集团完成白俄罗斯明斯克5号热电站改造项目
辽宁省电力有限公司顺利完成白俄罗斯明斯克5号热电站一期改建工程
中国海外经济合作总公司白俄罗斯明斯克5号热电站一期改建工程项目, Минская ТЭЦ-5
Minskaya Tets-5, филиал 'ТЭЦ-5' РУП 'Минскэнерго', ТЭЦ-5 - РУП 'Минскэнерго', Постановление Совета Министров Республики Беларусь от 16.05.2009 № 636 'О некоторых вопросах реализации соглашения с Государственным банком развития Китая'
中国海外经济合作有限公司
Oao Krasnosel'skstroymaterialy
China's Overseas Development Finance
BU_PITCH_ENGLISH_2019-clean5.xlsx, Кредитно-инвестиционное сотрудничество Беларуси и Китая 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.