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China Eximbank provides RMB 405 million government concessional loan for Belarusian Telecommunications Network (BeST) Construction and Equipment Supply Project (Linked to Record ID#42133)
| Funder | Export-Import Bank of China (China Eximbank) |
|---|---|
| Recipient Organization | Belarus Ministry of Finance |
| Country | Belarus |
| Start Date | Dec 31, 2005 |
| End Date | Jun 05, 2032 |
| Duration | 9,653 days |
| Number of Grantees | 1 |
| Roles | Recipient |
| Data Source | AidData Chinese Aid |
| Grant ID | 43258 |
Grant Description
China Eximbank provides RMB 405 million government concessional loan for Belarusian Telecommunications Network (BeST) Construction and Equipment Supply Project On December 5, 2005, the People’s Republic of China and the Government of Belarus signed a loan framework agreement, which specified that China Eximbank intended to issue an RMB 405,000,000 government concessional loan (BCL) to the Government of Belarus for the Belarusian Telecommunications Network (BEST) Construction and Equipment Supply Project.
Later that month, China Eximbank reportedly signed a GCL agreement worth RMB 405 million (captured via Record ID#43258) and a buyer’s credit loan agreement worth $184.2 million (captured via Record ID#42133) for the Belarusian Telecommunications Network (BEST) Construction and Equipment Supply Project.
Both of these loans reportedly carried 9-year maturities (from 2006 to 2014) and 3-year grace periods (from 2006 to 2008).
Belarus’ Ministry of Finance evidently on-lent the proceeds from the GCL and buyer’s credit loan to a newly-established state-owned company called CJSC Belarusian Telecommunications Network (BeST).
BeST, in turn, used the proceeds from the GCL and the buyer’s credit loan to finance a $234 million commercial contract that it signed with Alcatel Shanghai Bell Company Limited (a Chinese subsidiary of Alcatel, a French telecommunications and engineering company) in the fall of 2005.
The purpose of this project was to build a cellular (GSM) communication network and facilitate the acquisition of telecommunication equipment from Alcatel Shanghai Bell Company Limited. As of November 15, 2007, China Eximbank had disbursed $170 million in support of the implementation of this project.
According to the Council of Ministers of Belarus, the project was ultimately completed in 2008.
Staff Comments
- The Russian project title is Создание оператора мобильной связи «Бест» or проекта телекоммуникационной сети (GSM) для компании 'BeST'.
- This loan is not included in the Overseas Development Finance Dataset published by Boston University’s Global Development Policy Center in December 2020. For the time being, AidData assumes that the GCL and buyer’s credit loan maturities and grace periods are identical (since the General Director of BeST, Mikhail Demchenko, announced on November 15, 2007 that his company was responsible for repaying China Eximbank and repayments would begin in 2009 and end in 2014)
Sources & References
- Belarus-China trade may exceed pre-crisis level in 2010 – V.Semashko
- Cooperation between China Development Bank and Belarus’ banks discussed in Beijing, 8th meeting of the Belarusian-Chinese Commission Composition of the group for participation in the eighth meeting of the Belarusian-Chinese Commission on Trade and Economic Cooperation, Соглашение Правительства Республики Беларусь и Правительства Китайской Народной Республики от 5 декабря 2005 г. 'Рамочное соглашение между Правительством Республики Беларусь и Правительством Китайской Народной Республики о предоставлении льготного кредита Китайской Народной Республикой Республике Беларусь', Компания Alcatel Shanghai Bell намерена открыть представительство в Беларуси, Соглашение Правительства Республики Беларусь от 5 декабря 2005 г. 'Рамочное соглашение между Правительством Республики Беларусь и Правительством Китайской Народной Республики о предоставлении льготного кредита Китайской Народной Республикой Республике Беларусь', Товарооборот Беларуси и Китая по итогам 2010 года может превысить докризисный уровень – В.Семашко, Визит У Банго станет новой точкой в развитии белорусско- китайских отношений -- вице-премьер Беларусь А. Тозик, Беларусбанк и Экспортно-импортный банк Китая в июле планируют подписать соглашение о сотрудничестве (БелТА, 12.06.2006), Беларусь рассчитывает на успешную реализацию проекта по созданию белорусско-китайского индустриального парка – М.Мясникович, «БеСТ» выплатит китайский кредит за счет собственных средств, РАМОЧНОЕ СОГЛАШЕНИЕ МЕЖДУ ПРАВИТЕЛЬСТВОМ РЕСПУБЛИКИ БЕЛАРУСЬ И ПРАВИТЕЛЬСТВОМ КИТАЙСКОЙ НАРОДНОЙ РЕСПУБЛИКИ О ПРЕДОСТАВЛЕНИИ ЛЬГОТНОГО КРЕДИТА КИТАЙСКОЙ НАРОДНОЙ РЕСПУБЛИКОЙ РЕСПУБЛИКЕ БЕЛАРУСЬ, Соглашение о предоставлении Беларуси льготного правительственного кредита подписано с Эксимбанком Китая
- Belarus-China trade may exceed pre-crisis level in 2010
- 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.
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Belarus Ministry of Finance
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