Completed Mixed AidData Chinese Aid

China Eximbank provides $200 million preferential buyer’s credit for Section 1 of Bishkek–Naryn–Torugart Road Rehabilitation Project (9km-272km)

$200M USD

Funder	Export-Import Bank of China (China Eximbank)
Recipient Organization	Government of Kyrgyzstan
Country	Kyrgyz Republic
Start Date	Oct 15, 2009
End Date	Sep 05, 2031
Duration	7,995 days
Number of Grantees	1
Roles	Recipient
Data Source	AidData Chinese Aid
Grant ID	`46348`

Grant Description

China Eximbank provides $200 million preferential buyer’s credit for Section 1 of Bishkek–Naryn–Torugart Road Rehabilitation Project (9km-272km) On October 15, 2009, China Eximbank and the Government of the Kyrgyz Republic signed a preferential buyer’s credit (PBC) agreement [CHINA EXIMBANK PBC NO. 2009 (25) TOTAL NO. (87)] worth $199,999,703 for the Section 1 of Bishkek–Naryn–Torugart Road Rehabilitation Project (from kilometer 9 to kilometer 272).

📋 Loan / Grant Terms

📅 Maturity20 years

⏳ Grace Period5 years

💹 Interest Rate2%

According to the Government of the Kyrgyz Republic’s Aid Management Platform (AMP), the first loan disbursement (of $189,999,717.85) took place on July 1, 2013 and the second and final loan disbursement (of $10,000,000) took place on December 31, 2014. The same source notes that, as of 2014, had achieved a 100% disbursement rate ($199,999,717.85 out of $199,999,703).

According to internal data that the Kyrgyz Ministry of Finance shared with AidData in July 2022, this loan achieved a disbursement rate of 10% as of December 31, 2021 and its amount outstanding was $114,486,759.69 as of December 31, 2021.

This project sought to upgrade rehabilitate a 223 km stretch along the Bishkek–Naryn–Torugart Road between kilometer 9 to kilometer 272 (9km-272km).

The Bishkek-Naryn-Torugart road is one of the main transport routes within Kyrgyzstan and comprises part of "Europe-East Asia" CAREC Transport Corridor. China Road and Bridge Corporation was the contractor responsible for project implementation. A “notice to commence” was issued to the contractor on May 1, 2010.

Section 1 (from kilometer 9 to km 103) was completed on December 31, 2012.

However, there are some indications that the preferential buyer's credit for the Section 1 of Bishkek–Naryn–Torugart Road Rehabilitation Project (9km-272km) financially underperformed vis-a-vis the original expectations of the lender.

On or around July 1, 2021, China Eximbank and the Government of the Kyrgyz Republic signed a debt suspension agreement [No. DSSI2021PHASE2-029].

Under the terms of the agreement (captured via Record ID#96102), the lender agreed to suspend principal and interest payments due between July 1, 2021 and December 31, 2021 under the preferential buyer's credit agreement for the Section 1 of Bishkek–Naryn–Torugart Road Rehabilitation Project (9km-272km).

📋 Staff Comments

The Russian project title is проекту реабилитации дороги Бишкек-Нарын-Торугарт (участок с 9 по 272 км, протяженностью 223 км).
The project identification number in the Government of the Kyrgyz Republic’s Aid Management Platform (AMP) is 871881777.
The debt suspension agreement [No. DSSI2021PHASE2-028] can be accessed in its entirety via https://www.dropbox.com/s/huwa695j3w9hwig/DSSI%20Agreement%20for%20Kyrgyz%20Republic.pdf?dl=0.
A detailed loan repayment reschedule (that the Kyrgyz Ministry of Finance shared with AidData in July 2022) can be accessed via https://www.dropbox.com/s/xg0cmomv0qk7cbj/Repayments.xlsx?dl=0. The schedule reflects actual repayments through December 31, 2021 and planned/scheduled repayments after December 31, 2021. Note also that (a) China Eximbank granted the Government of Kyrgyz Republic a a deferral of payments for the period from August 2021 to December 2021, and (b) the deferred principal and interest amounts are included in the main body of the debt and the repayment amounts of the deferrals (with additional accrued interest for granting a deferment) are already included in the repayment schedule.
Some sources identify the creditor's loan identification number as China Eximbank PBC NO. (2009) 25 TOTAL NO. (87).
This loan participated in DSSI with China. AidData acquired the number of loans that were rescheduled in late 2021 from Kyrgyz Republic’s ministry of finance.

📚 Sources & References

Letter of the Ministry of Economy of the Kyrgyz Republic dated February 18, 2013 No. 16-4 / 1567
Action Plan on Implementing CAREC TTFS 2020
AMP Kyrgyz Republic Record ID 871881777.pdf
Bishkek - Naryn - Torugart
Bishkek - Naryn - Torugart
Bishkek-Naryn Road Rehabilitation Project in Kyrgyzstan
Bishkek-Naryn-Torugart road rehabilitation project
China's Foreign Assistance PPT Presentation
China’s Foreign Aid: Current Status and Future Challenges
Country-TTFS-Implementation-KGZ
DEVELOPMENT COORDINATION
DSSI Agreement for the Kyrgyz Republic
Due Diligence Report
Financing
Km 9 to 272 of the CAREC Transport Corridor 1 Rehabilitation Project
Kyrgyz Republic AMP
Monthly Progress Report From 1 June to July, 2011
MONTHLY REPORT ABOUT IMPLEMENTATION OF WORK FOR OCTOBER 2012
Preferential loan agreement for the rehabilitation project of the Bishkek - Naryn - Torugart road section from 9 to 272 km, length 223 km between the Government of the Kyrgyz Republic as a borrower and the Export-Import Bank of China as a lender
Re: Project-Specific Informa5on from the Kyrgyz Aid Management Pla?orm (Кыргызстандагы жардамдарды башкаруу платформасынан Долбоор боюнча Конкреттүү маалымат)
Rehabilitation of Bishkek-Naryn-Torugart (section 9 to 272 km 223 km)
Rehabilitation of Bishkek-Naryn-Torugart Road
Rehabilitation of the Bishkek–Naryn-Torugart Road Project, table, table, Комитета по международным делам и межпарламентскому сотрудничеству Жогорку Кенеша Кыргызской Республики по проекту Закона Кыргызской Республики «О ратификации Льготного Кредитного соглашения по проекту реабилитации дороги Бишкек - Нар ын - Торугарт (участок с 9 по 272 км, протяженностью 223 км) между Правительством Кыргызской Республики в качестве Заемщика и Экспортно - Импортным Банком Китая в качестве Кредитора, подписанного 15 октября 2009 года в г. Пекин, КНР», О ратификации Льготного кредитного соглашения по проекту реабилитации дороги Бишкек-Нарын-Торугарт (участок с 9 по 272 км, протяженностью 223 км) между Правительством Кыргызской Республики в качестве Заемщика и Экспортно-Импортным Банком Китая в качестве Кредитора, подписанного 15 октября 2009 года в г.Пекин, КНР, Письмо Министерства экономики Кыргызской Республики от 18 февраля 2013 года № 16-4/1567 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.