Completed Mixed AidData Chinese Aid

China Development Bank provides $85 million buyer’s credit loan for Melnykov Coal Mine Modernization Project (Linked to Record ID#42513)

¥85M RMB

Funder	China Development Bank (CDB)
Recipient Organization	OJSC Lysychanskvuhillya
Country	Ukraine
Start Date	Dec 21, 2011
End Date	Aug 19, 2033
Duration	7,912 days
Number of Grantees	1
Roles	Recipient
Data Source	AidData Chinese Aid
Grant ID	`42515`

Grant Description

China Development Bank provides $85 million buyer’s credit loan for Melnykov Coal Mine Modernization Project On September 2, 2010, China Development Bank and the Government of Ukraine’s Ministry of Energy and the Coal Industry signed a $1.03 billion loan framework agreement (as captured via Record ID#42513).

The agreement was signed by Yuriy Yaschenko, the Ukrainian Minister of Energy and the Coal Industry and Chen Yuan, the Chairman of CDB.

It identified seven investment projects that the CDB would consider supporting via subsidiary loans under the framework agreement.

Then, on December 21, 2011, China Development Bank and OJSC Lysychanskvuhillya (also known as ВАТ "Лисичанськвугілля" or товариство "Лисичанськвугілля”) — a state-owned Ukrainian coal company — signed an $85 million subsidiary buyer’s credit loan agreement [№15010-02/191].

📋 Loan / Grant Terms

💰 Loan Amountwere as follows: a 9-year maturity

📅 Maturity9 years

⏳ Grace Period3 years

The loan’s final maturity date is December 21, 2020.

On December 26, 2011, the Government of Ukraine’s Ministry of Finance issued a sovereign guarantee in support of this loan.

The borrower was expected to use the loan proceeds to finance a commercial contract (№ 06-214 / 2) that it signed with Tian Di Science & Technology Co., Ltd (Ukrainian: "Тіанди" Сайнес енд Технолоджи Ко., Лтд”) on March 7, 2012.

The CDB loan's principal amount outstanding was $46.24 million as December 31, 2017, $33.2 million as of December 31, 2018, $20.4 million as of December 31, 2019, $0 as of December 31, 2020, $0 as of December 31, 2021, $0 as of December 31, 2022, and $0 as of December 31, 2023.

The purpose of the project was to re-equip and modernize the Melnikov (Melnykov) Coal Mine (Ukrainian: Шахта ім. Мельникова) in the city of Lysychansk within Luhansk Region.

OJSC Lysychanskvuhillya received and tested the equipment that it acquired from Tian Di Science & Technology Co., Ltd on October 20, 2012. The project was completed in September 2013.

📋 Staff Comments

This project is also known as the Melnikov Coal Mine Modernization Project. The Ukrainian project title is проекту щодо технічного переоснащення та модернізації ВП «Шахти ім. Д.Ф. Мельникова». The Chinese project title is 乌克兰梅利尼科瓦煤矿现代化技术改造项目 or 款的乌克兰梅利尼科娃煤矿改造项目 or 梅利尼科娃煤矿改造项目.
This CDB loan was not included in the Overseas Development Finance Dataset published by Boston University’s Global Development Policy Center in December 2020.
The loan's principal amounts outstanding (between 2017 and 2023) were provided to AidData by Ukraine's Ministry of Finance. See https://www.dropbox.com/scl/fi/w0ddyrsl5xxd195flfsky/Request-for-List-of-Loans-from-Chinese-Government-Institutions-to-Ukraine.pdf?rlkey=pzx7izhwzqkqvz7c6ovrq190v&dl=0 and https://www.dropbox.com/scl/fi/95ly20xn48i8rz8zofmms/China-Ukraine_31.12.2023.xlsx?rlkey=9xzpwdmraz2wvjuzcbv4wai63&dl=0 and https://www.dropbox.com/scl/fi/j0goga9grge5lm8d0jsda/China-Ukraine_31.12.2017.xlsx?rlkey=60u01uv5k64nzlf3njgz0mzkl&dl=04. We are disregarding principal payment debt data found in sources 205911, 205912, 205913, 205914, 205915, and 205916. We found that these observations of principal payments were conflicting with observed amount outstanding debt data point found in sources 86310, 205908, 205909, 205910. Upon further investigations, we decided that the amount outstanding observations were more reliable.

📚 Sources & References

China Development Bank to Finance Ukraine Coal Mine Projects
Ukraine
China sign 7 documents
Ukrainian coal producer eyes $85 mln loan from China Development Bank
Ukraine has attracted 85 million dollars of Chinese investment in the coal industry
Ukraine,China sign $3.7 bil loan deal to move power plants from gas to coal
Ukraine
China sign $3.7 bil loan deal to move power plants from gas to coal
STUDY ON STATE SUPPORT TO UNDERTAKINGS IN UKRAINE
Ukraine, 2012 Ukraine Government Bond Prospectus
罗伟东参赞会见国家开发银行代表团
Meeting of Minister Eduard Stavytsky with delegation of People's Republic of China takes place
Ukraine Attracted USD 85 mn of Chinese Investment in Coal Industry
Loans with state guarantees from China to Ukraine as of 31.12.2017, про платежі з виконання державою гарантійних зобов'язань, ІНФОРМАЦІЙНЕ ПОВІДОМЛЕННЯ, Опис бізнесу, Шахта імені Д. Ф. Мельникова, АТ 'Лисичанськвугілля', Регулярна інформація за 2017 рік Назва: ПУБЛІЧНЕ АКЦІОНЕРНЕ ТОВАРИСТВО 'ЛИСИЧАНСЬКВУГІЛЛЯ'
Complete set of mining equipment, Річна інформація емітента цінних паперів (річний звіт) за 2019 рік, ЗВІТ ПРО УПРАВЛІННЯ ПУБЛИЧНОГО АКЦІОНЕРНОГО ТОВАРСТВА «Лисичанськвугілля» за 2019 рік
Decree № 52682023, 19.10.2015
Luhansk Circuit Administrative Court, Регулярна інформація за 2015рік, Опис бізнесу, ЗВІТ ПРО УПРАВЛІННЯ ПУБЛИЧНОГО АКЦІОНЕРНОГО ТОВАРСТВА «Лисичанськвугілля» за 2018 рік
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