Completed Mixed AidData Chinese Aid

China Eximbank provides $12.1 million preferential buyer’s credit for Phase 2 of Agricultural Machinery Equipment Acquisition Project (Linked to Record ID#40435, #73192, #67123)

$12.1M USD

Funder	Export-Import Bank of China (China Eximbank)
Recipient Organization	Government of Mongolia
Country	Mongolia
Start Date	Aug 21, 2014
End Date	Oct 03, 2032
Duration	6,618 days
Number of Grantees	1
Roles	Recipient
Data Source	AidData Chinese Aid
Grant ID	`47040`

Grant Description

China Eximbank provides $12.1 million preferential buyer’s credit for Phase 2 of Agricultural Machinery Equipment Acquisition Project In August 2014, China Eximbank and the Government of Mongolia signed a $12.1 million preferential buyer’s credit (PBC) agreement for Phase 2 of the Agricultural Machinery Equipment Acquisition Project.

The PBC was approved under a $500 million line of credit for various projects that was signed by the two governments on June 16, 2011 (captured in Record ID#40435).

📋 Loan / Grant Terms

📅 Maturity20 years

⏳ Grace Period7 years

💹 Interest Rate2%

The proceeds of the PBC were to be used by the borrower to partially finance a purchase contract with Lovol Heavy Industry Co., Ltd. The purpose of the project was to facilitate the acquisition of wheat-harvesting equipment.

China Eximbank also financed Phases 1 and 3 of the Agricultural Machinery Equipment Acquisition Project (captured in Record ID#73192 and ID#67123).

On May 24, 2015, a delivery ceremony for 150 high-horsepower tractors, 60 combine harvesters, and 100 additional pieces of agricultural machinery was held.

📋 Staff Comments

This project is also known as the Purchasing Large Tractors Project. The Chinese project title is 款农机设备采购项目 or 款采购大型农业机械项目（二期). The Mongolian project title is “Бага оврын хөдөө аж ахуйн трактор худалдан авах II” төсөл.
The China Eximbank loan that supported this project is not included in the Overseas Development Finance Dataset that Boston University’s Global Development Policy Center published in December 2020.

📚 Sources & References

Mongolia meeting its domestic wheat demand with subsidised loans
使用中国政府优买贷款采购大型农机具移交蒙方
中蒙农业合作之路越走越宽雷沃重工再获蒙古国大订单, МОНГОЛ УЛС, БНХАУ-ЫН ХООРОНДЫН ХУДАЛДАА, ЭДИЙН ЗАСГИЙН ХАМТЫН АЖИЛЛАГААНЫ ТУХАЙ ТОВЧ ТАНИЛЦУУЛГА, Монгол газар, МАК зэрэг компаниуд гэрээнд гарын үсэг зуржээ, ЗЭЭЛИЙН ЕРӨНХИЙ ХЭЛЭЛЦЭЭР СОЁРХОН БАТЛАХ ТУХАЙ
FOTON LOVOL Successfully Delivered Order Valued 100-million RMB to Mongolia
Offering Memorandum
China 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.

All Grantees

Government of Mongolia

Interested in applying for this grant?

Complete our application form to express your interest and we'll guide you through the process.

Apply for This Grant