Active Mixed AidData Chinese Aid

China Eximbank provides $434.5 million preferential buyer’s credit for the 415 km Kalbatau-Maykapshagai Road Reconstruction Project (Linked to Record ID#54989, #54991, and #55016)

$434.5M USD

Funder	Export-Import Bank of China (China Eximbank)
Recipient Organization	JSC NC KazAvtoZhol
Country	Kazakhstan
Start Date	May 17, 2017
End Date	Jul 17, 2031
Duration	5,174 days
Number of Grantees	1
Roles	Recipient
Data Source	AidData Chinese Aid
Grant ID	`54990`

Grant Description

China Eximbank provides $434.5 million preferential buyer’s credit for the 415 km Kalbatau-Maykapshagai Road Reconstruction Project On May 15, 2017, the Export-Import Bank of China and JSC KazAutoZhol National Company Joint Stock Company (JSC NC KazAvtoZhol or азАвтоЖол)— a Kazakh state-owned transportation company — signed a $434.5 million preferential buyer’s credit (PBC) agreement for the 415 km Kalbatau-Maykapshagai Road Reconstruction Project.

📋 Loan / Grant Terms

📅 Maturity20 years

⏳ Grace Period5 years

💹 Interest Rate2%

The Government of Kazakhstan provided a sovereign guarantee for the loan.

The proceeds of the PBC were to be used by the borrower to finance 85% of the cost of a $511 million commercial (EPC) contract between China Xinxing Construction and Development Co. Ltd (Xinxing Construction) and KazAutoZhol.

The purpose of the project is to upgrade a 415 km road that runs from the village of Kalbatau and the checkpoint Maykapshagai on the border with China in the East Kazakhstan region.

Xinxing Construction (211 km in total) and JV KazGerStroy LLP (204 km in total) were the general EPC contractors responsible for implementation. However, China General Technology Group (Genertec) is also involved in implementation. Quality control of the work performed is carried out by YuVPEC-Astana LLP.

As of December 2021, 127 km of roads had been covered with new asphalt concrete pavement. Construction began in May 2019 and the project was originally expected to reach completion in June 2022.

However, it has encountered several implementation problems, including the COVID-19 pandemic, an increase in the cost of road construction materials, and contractor performance problems. In October 2021, Xinxing Construction completed one of the eight road sections (measuring 43.228 in length).

📋 Staff Comments

The Chinese project title is 卡尔巴套-麦卡普沙盖公路改造 or 卡尔巴套-麦卡普沙盖公路 or 的卡尔巴套-迈哈布奇盖公路项目（415公里). The Russian project title is реконструкции участка автодороги 'Калбатау-Майкапшагай”. The project is sometimes known as the 'KM415 Project' in English.
In its 2018 financial statements, JSC NC KazAutoZhol disclosed that it signed 4 preferential buyer’s credit (PBC) agreements with China Eximbank in 2017 worth $1,667,577,000 to support 4 road reconstruction projects: a $434.5 million PBC for the Kalbatau–Maikapshagai Road Reconstruction Project (captured via Record ID#54990), a $796 million PBC for the Taldy-Korgan-Kalbatau-Ust-Kamenogorsk Road Reconstruction Project (captured via Record ID#55016), a $253.3 million PBC for the Merke-Burylbaital Highway Reconstruction Project (captured via Record ID#54989), and a $183.95 million PBC for the Astana Bypass Road Reconstruction Project (captured via Record ID#54991) (see that the loans were PBCs at '哈萨克斯坦总理马明视察中国企业承建公路项目': see rest at pg.14 of 'Financial Statements for the year ended 31 December 2018'). The combined monetary value of these 4 PBC is $1,667,750,000, which is very close to $1,667,577,000 figure reported in the 2018 financial statements of JSC NC KazAutoZhol.
This China Eximbank loan is not included in the China’s Overseas Development Finance Dataset that Boston University's Global Development Policy Center published in December 2020.
The borrowing terms of the loan are specified in this official source (https://www.dropbox.com/s/5bx9wt7r2tq10ag/%D0%93%D0%BE%D0%B4%D0%BE%D0%B2%D0%BE%D0%B9%20%D0%BE%D1%82%D1%87%D0%B5%D1%82%20%D0%B7%D0%B0%202020%D0%B3.pdf?dl=0).

📚 Sources & References

Nurly Zhol State Program: highways, logistics, housing and communal services, Компания «КазАвтоЖол» подписала двустороннее соглашение в рамках Форума 'Один пояс, один путь'.
哈萨克斯坦MB266项目举行开工典礼
新兴集团承接的哈萨克斯坦两段公路改造项目贷款协议签约
Chairman of JSC “NC“ KazAvtoZhol ”checked the work progress of objects of reconstruction in the East Kazakhstan region
童总经理参加中国进出口银行与哈萨克斯坦国家公路股份公司贷款协议签字仪式
Financial Statements for the year ended 31 December 2018, 'ҚазАвтоЖол' ұлттық компаниясы' акционерлік қоғамының 2013 - 2022 жылдарға арналған даму стратегиясын бекіту туралы
哈萨克斯坦总理马明视察中国企业承建公路项目
KazAvtoZhol Company signed a bilateral agreement within the framework of the Forum 'One Belt
One Way'.
中国新兴建设开发有限责任公司, О внесении изменения в постановление Правительства Республики Казахстан от 26 декабря 2013 года № 1409 'Об утверждении Стратегии развития акционерного общества 'Национальная компания 'ҚазАвтоЖол' на 2013 – 2022 годы'
State-owned Assets Supervision and Administration Commission official website reports on emerging construction projects in Kazakhstan
They are running ahead of time, О реконструкции участка автодороги 'Калбатау-Майкапшагай'
哈萨克斯坦总理马明视察中国企业承建公路项目
中企承建哈公路建设改造项目稳步推进, ГОДОВОЙ ОТЧЕТ АО «НК «ҚазАвтоЖол» за 20 20 год
新兴集团承接的哈萨克斯坦两段公路改造项目贷款协议签约
Financial Statements for the year ended 31 December 2018
Financial Statements for the year ended 31 December 2019 (Финансовая отчетность за год, закончившийся 31 декабря 2019 года)
Financial Statements for the year ended 31 December 2020 (Финансовая отчетность за год, закончившийся 31 декабря 2020 года)
Financial Statements for the year ended 31 December 2021 (Финансовая отчетность за год, закончившийся 31 декабря 2021 года)
Financial Statements for the year ended 31 December 2022 (Финансовая отчетность за год, закончившийся 31 декабря 2022 года)
Consolidated Financial Statements for the Year Ended 31 December 2023 with Independent Auditor's Report (Консолидированная финансовая отчетность за год, закончившийся 31 декабря 2023 года с Аудиторским заключением независимого аудитора) 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.