Completed Mixed AidData Chinese Aid

China Eximbank provides $340 million buyer’s credit loan for 86.54 km Gomel-Zhlobin Section of the M5/E271 Minsk-Gomel Highway Upgrading and Reconstruction Project (Linked to Record ID#46413)

$340M USD

Funder	Export-Import Bank of China (China Eximbank)
Recipient Organization	Government of Belarus
Country	Belarus
Start Date	Jun 14, 2011
End Date	Sep 27, 2028
Duration	6,315 days
Number of Grantees	1
Roles	Recipient
Data Source	AidData Chinese Aid
Grant ID	`42336`

Grant Description

China Eximbank provides $340 million buyer’s credit loan for 86.54 km Gomel-Zhlobin Section of the M5/E271 Minsk-Gomel Highway Upgrading and Reconstruction Project On June 14, 2011, China Eximbank and the Government of Belarus signed a $340 million buyer’s credit loan agreement [CHINA EXIMBANK No.

BLA201105] for the 86.54 km Gomel-Zhlobin Section of the M5/E271 Minsk-Gomel Highway Upgrading and Reconstruction Project. The estimated interest rate of this loan is 4.9255%. Its maturity and grace period are unknown. The Government of Belarus issued a sovereign guarantee in support of the loan.

The proceeds of the loan were on-lent to a state-owned company called RUE Gomelavtodor (РУП «Гомельавтодор»).

RUE Gomelavtodor then used the loan proceeds to partially finance a commercial contract that it signed with China Road and Bridge Corporation (CRBC) on September 26, 2010.

The purpose of the project was to upgrade and reconstruct an 86.54 km section of the M5/E271 Minsk-Gomel Highway that runs from Gomel to Zhlobin.

The M5/E271 Highway, located in Southeast Belarus, is a vital communication line connecting Minsk, the capital of Belarus, and Gomel, the second largest city in Belarus.

CRBC was the EPC contractor responsible for implementation The project was officially launched on January 4, 2013 and it was completed on December 24, 2014.

📋 Staff Comments

This project is also known as the Zhlobin-Gomel Road Project. The Russian project title is Дорога Жлобин-Гомель or проекта «Реконструкция автомобильной дороги М-5/Е 271 Минск – Гомель на участке Жлобин – Гомель». The Chinese project title is M5公路日洛宾-戈梅利路段改造项目 or M5公路延长线项目.
The Government of Belarus’ sovereign bond prospectus states that the Chinese Government has lent it $662.1 million for road construction activities. This amount is almost exactly equivalent to the sum of the value of the two loans that China Eximbank issued in 2011 (captured in this Project ID#42336) and 2012 (captured in Project ID#46413) for the reconstruction and upgrading of two sections of the Minsk-Gomel highway M-5/E271 (the Gomel-Zhlobin Section and the Bobruisk-Zhlobin Section).

📚 Sources & References

Belarus to get $600 mln loans from China
Belarus to Get $600 Mln in Loans from China
Highway Minsk-Gomel reconstructed by the Chinese 1
CHINA TO ISSUE A LOAN OF $344 M TO RECONSTRUCT BOBRUISK-ZHLOBIN SECTION OF MINSK-GOMEL HIGHWAY
Zhlobin-Gomel Road, Об уточнении отдельных показателей республиканского бюджета на 2018 год
China’s $322m loan for Bobruisk-Zhlobin road rehabilitation
China and Belarus relation on fast track
Belarus to pour China’s $1bn loan into 4 major projects
Republic of Belarus Prospectus 2018
Investment activity in the Republic of Belarus
Belarus
China Exim Bank sign $1bn loan agreements to finance joint projects
China to lend $340m to repair Zhlobin-Gomel road, 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)
崔启明大使走访慰问中资企业
白俄罗斯M5公路改扩建项目工程经验总结 - 百度文库, В соответствии с Указом Президента Республики Беларусь от 18 апреля 2006 г. No 252 ”Об утверждении Положения о внешних государственных займах и внешних займах, привлеченных под гарантии Правительства Республики Беларусь“ Совет Министров Республики Беларусь ПОСТАНОВЛЯЕТ:, О некоторых вопросах реализации инвестиционного проекта «Реконструкция автомобильной дороги М-5/Е 271 Минск – Гомель на участке Жлобин – Гомель», О некоторых вопросах реализации Кредитного соглашения с Экспортно- импортным банком Китая, Риски размещения прямых китайских инвестиций и несвязанных кредитов в Республике Беларусь, О некоторых вопросах реализации Кредитного соглашения с Экспортно-импортным банком Китая
Belarus
China Exim strike deals to finance projects
Belarusian Prime Minister: China is a strategic partner for Belarus
China's Overseas Development Finance 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.