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China Eximbank pledges $827.6 million loan for 315MW Egiin Gol Hydropower Project (Linked to Record ID#49148)
| Funder | Export-Import Bank of China (China Eximbank) |
|---|---|
| Recipient Organization | Government of Mongolia |
| Country | Mongolia |
| Start Date | Nov 10, 2015 |
| End Date | Jun 27, 2030 |
| Duration | 5,343 days |
| Number of Grantees | 1 |
| Roles | Recipient |
| Data Source | AidData Chinese Aid |
| Grant ID | 49412 |
Grant Description
China Eximbank pledges $827.6 million loan for 315MW Egiin Gol Hydropower Project In 2015, the Government of Mongolia was reportedly in negotiations with China Eximbank about a potential $827.6 million subsidiary loan for the 315MW Egiin Gol Hydropower Project under a $1 billion general loan agreement (captured in Record ID#49148) that it signed with China Eximbank on November 10, 2015.
The purpose of the project was to construct a 330MW hydroelectric power generation facility near the confluence of the Egiin river and the Selenge River.
The area within the projected reservoir inundation zone consists mainly of natural pastureland (used sparsely by nomadic locals) with small areas of forest and cropland.
The geographical coordinates of the reservoir area are north latitude from 49°24’23” to 49°39’51” and east longitude from 103°38’15” to 103°06’13”.
However, it was later revealed that China’s National Development and Reform Commission objected to the financing of the project due to concerns about transboundary impacts of the dam.
China Eximbank also received a letter from the people of Russia’s Kabansk District in the Selenge River Delta, warning that the project could harm Lake Baikal, which is the source of cold winter air in China. A subsidiary loan agreement with China Eximbank for the 330MW Egiin Gol Hydropower Project was never finalized.
The Government of Mongolia used the $1 billion general loan agreement to support other projects.
Staff Comments
Under the terms of the general loan agreement, all subsidiary (individual) loan agreements for specific projects were to carry identical borrowing terms: 20-year maturity, 7-year grace period, 2% interest rate, 0% management fee, and 0.25% commitment fee.
Sources & References
- Mongolia : 2017 Article IV Consultation and Request for an Extended Arrangement Under the Extended Fund Facility-Press Release: Staff Report; and Statement by the Executive Director for Mongolia
- US$1 billion proposed 315-MW Egiin Gol hydroelectric project in Mongolia, on hold
- Silk Road project suspended over threats to Lake Baikal
- China’s Silk Road construction stops short of harming Lake Baikal - expert
- 中国葛洲坝集团股份有限公司第六届董事会第十二次会议（临时）决议公告
- Mongolia to receive USD 1 billion loan from China
- Examining the Debt Implications of the Belt and Road Initiative from a Policy Perspective
- NM0245: The 220 MW Egiin Gol Hydroelectric power generation project in Mongolia (The Project or Project activity)
- CDM: Proposed New Methodology Meth Panel recommendation to the Executive Board: “The 220 MW Egiin Gol Hydroelectric power generation project in Mongolia (The Project or Project activity)
- CLEAN DEVELOPMENT MECHANISM PROJECT DESIGN DOCUMENT FORM (CDM-PDD) Version 03 - in effect as of: 28 July 2006
- 俄罗斯称在蒙古建水电站会破坏贝加尔湖，中方项目面临冻结 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
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