Completed Mixed AidData Chinese Aid

China Eximbank provides $140.3 million preferential buyer’s credit for Ulaanbaatar-Khushigt Valley New Airport Highway Construction Project (Linked to Record ID#49148)

$140.34M USD

Funder	Export-Import Bank of China (China Eximbank)
Recipient Organization	Government of Mongolia
Country	Mongolia
Start Date	Jul 14, 2016
End Date	May 30, 2030
Duration	5,068 days
Number of Grantees	1
Roles	Recipient
Data Source	AidData Chinese Aid
Grant ID	`49208`

Grant Description

China Eximbank provides $140.3 million preferential buyer’s credit for Ulaanbaatar-Khushigt Valley New Airport Highway Construction Project On November 10, 2015, China Eximbank and the Government of Mongolia signed a general loan agreement regarding the utilization of a $1 billion preferential buyer's credit (PBC) for various projects (as captured in Record ID#49148).

📋 Loan / Grant Terms

💰 Loan Amountagreement

📅 Maturity20 years

⏳ Grace Period7 years

💹 Interest Rate2%

Then, on July 14, 2016, China Eximbank and the Government of Mongolia subsequently signed two subsidiary loan (PBC) agreements: a $140,335,893.00 loan (PBC) agreement for the Ulaanbaatar-Khushigt Valley New Airport Highway Construction Project and a $7,207,921 loan (PBC) agreement [CHINA EXIMBANK PBC 2016 (19) TOTAL (407)] for the Ulaanbaatar-Khushigt Valley New Airport Highway Consultancy Service Project.

The proceeds from the first PBC were to be used by the borrower to finance 100% of the cost of a $140,335,893 EPC (turnkey) contract between China Railway 4th Bureau Group (also known as China Tiesiju Civil Engineering Group Co., Ltd. or CTCE) and Mongolia’s Ministry of Roads and Transportation Development, which was signed on September 18, 2015 (and possibly amended on June 6, 2016).

The proceeds from the second PBC were to be used by the borrower to finance 100% of the cost of a $7,207,921 supervision and consulting contract between Mongolia’s Ministry of Roads and Transportation Development and Guangzhou Wanan Construction Supervision Co., Ltd and "SRP Engineer Consulting Mongolia" LLC , which was signed on May 18, 2016.

The purpose of the project was to construct a 32.226 km, two-way, six-lane expressway from Yarmag toll station to the new international airport in Khushig Valley and Tuv Province (Khushig Valley International Airport). The expressway passes through Sergelen soum of Tuv aimag, Altanbulag soum and Khan-Uul district.

CTCE was the general EPC contractor responsible for implementation.

However, “Arj Capital” LLC, “Erdene Zam” LLC and “Badrakh Oil” LLC were also involved in implementation as subcontractors. Guangzhou Wanan Construction Supervision Co., Ltd was responsible for project supervision. Construction commenced on May 6, 2016 and ended on October 12, 2018. The project was officially handed over to the local authorities on July 10, 2019.

📋 Staff Comments

This project is also known as the Mongolian International Airport Highway Project and the Ulaanbaatar-Khushig Valley International Airport Expressway Project. The Chinese project title is 的蒙古国乌兰巴托新国际机场高速公路及那莱哈20.9公里公路 or 蒙古国乌兰巴托新机场高速公路项目 or 乌兰巴托新国际机场高速. The Mongolian project title is “Улаанбаатар-Хөшигийн хөндийн шинэ нисэх онгоцны буудлын хурдны автозам барих” төсөл or Улаанбаатар-Хөшигийнхөндий шинэнисэхонгоцныбуудлынхурдны замтөсөл or Улаанбаатар-Хөшигийн хөндийн хурдын авто зам.
The loan (PBC) agreement for the Ulaanbaatar-Khushigt Valley New Airport Highway Consultancy Service Project can be accessed in its entirety via https://www.dropbox.com/s/g47ysacy1k7r4zh/Mongolia%202016%20China%20Eximbank%20Loan%20for%20the%20Ulaanbaatar-Khushig%20Valley%20New%20Airport%20Road%20Construction%20Project.pdf?dl=0

📚 Sources & References

CAREC 16th TSCC MEETING Corridor Implementation Progress
Planned Actions, and Support Needs
China Overseas Development Finance
Examining the Debt Implications of the Belt and Road Initiative from a Policy Perspective, https://www.shilendans.gov.mn/org/10625?form=3618382&year=2019&month=9&group=1&task=10600
Mongolia 2016 China Eximbank Loan for the Ulaanbaatar-Khushig Valley New Airport Road Construction Project
Mongolia to receive USD 1 billion loan from China
Mongolia's first highway construction commences
NEW ULAANBAATAR INTERNATIONAL AIRPORT TO BE JOINTLY MANAGED
When Will the New Airport Be Ready?, ЗАСГИЙН ГАЗРЫН ГАДААДЫН ЗЭЭЛ, ТУСЛАМЖИЙН ХӨРӨНГӨӨР 2018 ОНЫ ТӨСВИЙН ЖИЛД ХЭРЭГЖҮҮЛЭХЭЭРТӨЛӨВЛӨЖ БУЙ ТӨСӨЛ, АРГА ХЭМЖЭЭ, МОНГОЛ УЛСЫН 2018-2021 ОНЫ ХӨРӨНГӨ ОРУУЛАЛТЫН ХӨТӨЛБӨРТ ЗАМ, ТЭЭВРИЙН ХӨГЖЛИЙН САЙДЫН ХАРИУЦАН ХЭРЭГЖҮҮЛЭХ АРГА ХЭМЖЭЭНИЙ 2019 ОНЫ ЖИЛИЙН ЭЦСИЙН ХЭРЭГЖИЛТ, Төсөл, Улаанбаатар - Хөшигийн хөндийн олон улсын шинэ нисэх онгоцны буудал чиглэлийн хурдны авто замын төсөл, “УЛААНБААТАР-ХӨШИГИЙН ХӨНДИЙН ОЛОН УЛСЫН ШИНЭ НИСЭХ ОНГОЦНЫ БУУДАЛ ЧИГЛЭЛИЙН ХУРДНЫ АВТО ЗАМ”-ЫН ТӨСЛИЙН ТОВЧ ТАНИЛЦУУЛГА
中铁四局中标承建蒙古国首条高等级公路项目
中铁四局承建蒙古国第一条高速公路顺利移交
光明日报客户端：中铁四局承建的蒙古新机场高速公路获境外工程鲁班奖
王岐山副主席与蒙古总理呼日勒苏赫共同为使用中国优惠性质贷款建成的蒙古国乌兰巴托新国际机场高速公路及那莱哈20.9公里公路开工揭牌
王岐山副主席与蒙古总理呼日勒苏赫共同为使用中国优惠性质贷款建成的蒙古国乌兰巴托新国际机场高速公路及那莱哈20.9公里公路开工揭牌
蒙古国中央省省长到中铁四局蒙古国新机场高速公路项目调研
邢海明大使赴中铁四局乌兰巴托新机场高速公路项目部考察 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.