Completed Mixed AidData Chinese Aid

China Eximbank provides $280.86 million preferential buyer’s credit for Creation of National Satellite Communications and Broadcasting System Project

$280.87M USD

Funder	Export-Import Bank of China (China Eximbank)
Recipient Organization	Government of Belarus
Country	Belarus
Start Date	Dec 19, 2012
End Date	Oct 14, 2032
Duration	7,239 days
Number of Grantees	1
Roles	Recipient
Data Source	AidData Chinese Aid
Grant ID	`42401`

Grant Description

China Eximbank provides $280.86 million preferential buyer’s credit for Creation of National Satellite Communications and Broadcasting System Project On December 19, 2012, China Eximbank and the Government of Belarus signed a $280,867,500 preferential buyer’s credit (PBC) agreement [CHINA EXIMBANK No. РBC (2012) 55 (243)] for the Creation of a National Satellite Communications and Broadcasting System Project.

Then, on January 24, 2013, the Government of Belarus’ Council of Ministers approved the PBC. The maturity length of the PBC is 15-years. Its interest rate and grace period are unknown.

Open Joint Stock Company "Savings Bank" Belarusbank (or JSC JSSB Belarusbank) is the agent bank responsible for servicing the loan.

The proceeds of the PBC were to be used by the borrower to partially finance a commercial contract with China Great Wall Industry Corporation, which was signed on August 5, 2012.

The project involved the production and launching of a satellite as well as the construction of a ground control center (GCC) in the Minsk region (located 40 kilometers from the city of Minsk).

Its ultimate goal was to improve radio and television broadcasting and improve internet service in Belarus and its neighboring regions.

It was agreed that the satellite would be jointly operated by Belarus and China during the first six months after its launch. However, Belarus would have exclusive control of the satellite thereafter. China Great Wall Industry Corporation was the general EPC contractor responsible for implementation.

It was supported by three Chinese subcontractors: China Academy of Launch Vehicle Technology (CALT), China Academy of Space Technology (CAST), and China Satellite Launch and Tracking Control General (CLTC). The project was officially launched on or around January 30, 2013. However, satellite production did not begin until July 2013.

Technical specialists from Belarus were trained in China from November 2014 to July 2015.

Then, on January 15, 2016, the BELINTERSAT-1 satellite was launched from the Xichan cosmodrome — in the southern part of central China — into an orbital position of 51.5 ° E., providing a full range of advanced satellite services in Europe, Africa and Asia, as well as global coverage in the Eastern Hemisphere.

It was delivered in orbit to Belarus on May 12, 2016. The GCC was delivered to the project owner in April 2016. The satellite was developed by the China Academy of Space Technology based on the DFH-4 satellite platform. Carrying 38 transponders, the satellite has a designed life span of 15-years. The commercial operations of the satellite began in June 2016.

However, problems arose during the commercial operations of the satellite and the Government of Belarus fell into arrears on its loan repayments.

In 2019, the Government of Belarus had only repaid $51.6 million and it asked China Eximbank to write-off (forgive) $232.7 million of outstanding loan principal (and interest). China Eximbank denied its request.

The Prime Minister of Belarus said at the time that 'further payments from the funds of the project cannot be made' ('дальнейшие выплаты за счет средств от реализации проекта осуществляться не могут').

📋 Staff Comments

This project is also known as the Belintersat Project. The Russian project title is проекта 'Белинтерсат' or создании на конкурсной основе национальной системы спутниковой связи и вещания or проекта «Создание национальной системы спутниковой связи и вещания Республики Беларусь». The Chinese project title is 白俄罗斯通信卫星一号 or 白俄罗斯通信卫星一号（BELINTERSAT-1）项目.
The China's Overseas Development Finance Dataset published by Boston University’s Global Development Policy Center in December 2020 identifies the face value of the China Eximbank loan that supported this project as $282 million. It also identifies the loan commitment year as 2011. However, multiple official sources record the face value of the loan as $280,867,500 and identify the loan signature date as December 19, 2012. Therefore, AidData records a loan commitment value of $280,867,500 and a loan commitment year of 2012.

📚 Sources & References

Об уточнении отдельных показателей республиканского бюджета на 2018 год
Investment activity in the Republic of Belarus
In-Orbit Delivery - LaoSat 1 Program
China Great Wall Industry Corporation won the bid for Belarusian communication satellite manufacturing project
On some issues of the implementation of the Credit Agreement with the Export-Import Bank of China
First Belarusian satellite has a mission of profit, not prestige
About, 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 проекте, Национальная система спутниковой связи и вещания Республики Беларусь, Постановление СМ РБ 57 О некоторых вопросах реализации Кредитного соглашения с Экспортно-импортным банком Китая от 24.01.2013 - Законодательство Беларуси 2021 год, Посольство Беларуси в России – Новости – Наука, Постановление Совета Министров Республики Беларусь от 24 января 2013 года № 57 «О некоторых вопросах реализации Кредитного соглашения с Экспортно-импортным банком Китая» (с изменениями от 30.04.2020 г.) - ПАРАГРАФ-WWW
Belarus’ satellite operator feeling good a year after first satellite launch
VeneSat-1 Program, '白俄罗斯通信卫星一号'地面测控站正式投入运营
关于
Belintersat-1 to open doors to global satellite services market for Belarus, Китай выделит Беларуси $280,8 млн кредита на создание системы спутниковой связи и вещания, О некоторых вопросах реализации Кредитного соглашения с Экспортно-импортным банком Китая, КОСМИЧЕСКИЙ ПРОРЫВ, ЗАКОН РЕСПУБЛИКИ БЕЛАРУСЬ 16 декабря 2019 г. No 269-З
中国与白俄罗斯签署通信卫星项目合同 --- 中国长城工业总公司
中国长城工业集团有限公司
白俄罗斯通信卫星一号发射五周年
白俄罗斯通信卫星一号
白俄罗斯银行将代理中国向白俄罗斯通信卫星项目提供的贷款, Китай отказался простить Беларуси $230 млн за создание спутника «Белинтерсат-1»
Mediasat
NATIONAL SYSTEM OF SATELLITE COMMUNICATION AND BROADCAST OF THE REPUBLIC BELARUS, О проведении переговоров по проектам кредитных соглашений между Правительством Республики Беларусь и Экспортно-импортным, О некоторых вопросах реализации Кредитного соглашения с Экспортно-импортным банком Китая
Belarus
China expected to sign contract for creation of communications satellite this year
Belarus to borrow $282 million from China to develop satellite communications
Belarus-China satellite project launched in Beijing
China-Belarus Industrial Park Becoming The First Regional Special Economic Zone of Belarus
China's Overseas Development Finance, КИТАЙ ВЫДЕЛИТ БЕЛАРУСИ $280,8 МЛН КРЕДИТА НА СОЗДАНИЕ СИСТЕМЫ СПУТНИКОВОЙ СВЯЗИ И ВЕЩАНИЯ, ИСТОРИЯ ПРОЕКТА, Китай отказался списать белорусским властям долг за спутник, Китай отказался списать Беларуси 230 миллионов долларов за спутник 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 Belarus

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