Completed Mixed AidData Chinese Aid

China Eximbank provides $59.8 million preferential buyer’s credit for 129.4 km Bayankhongor-Baidrag Bridge Road Construction Project

$59.79M USD

Funder	Export-Import Bank of China (China Eximbank)
Recipient Organization	Government of Mongolia
Country	Mongolia
Start Date	Jul 14, 2016
End Date	Oct 31, 2032
Duration	5,953 days
Number of Grantees	1
Roles	Recipient
Data Source	AidData Chinese Aid
Grant ID	`66280`

Grant Description

China Eximbank provides $59.8 million preferential buyer’s credit for 129.4 km Bayankhongor-Baidrag Bridge Road 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 signed a $59,792,833.10 subsidiary loan (PBC) agreement [CHINA EXIMBANK PBC 2016 (20) TOTAL (408)] for the 129.4 km Bayankhongor-Baidrag Bridge Road Construction Project.

The borrower was responsible for making 26 equal, semi-annual repayments (worth $2,299,724.35) after the expiration of the loan’s grace period.

The borrower was expected to use the proceeds of the loan to finance 100% of the $56,785,696.10 cost of a (1) commercial (construction) contract between Mongolia’s Ministry of Road and Transport and Shanghai Construction Group Co., Ltd. (signed on April 15, 2016) and a (2) $3,007,137 commercial (supervision) contract between Mongolia’s Ministry of Road and Transport and Guangzhou Wanan Construction Supervision Co., Ltd. (signed on May 18, 2016).

The purpose of the project was to construct a new 129.4 kilometer paved road from the center of Bayankhongor soum to Baidrag Bridge in Bayankhongor aimag. The grade 3 road is 7 meters wide and 6 cm thick asphalt paved with a 1.5 meters wide gravel embankment on both sides. Shanghai Construction Group Co., Ltd. was the general EPC contractor responsible for project implementation.

However, a number of Mongolia subcontractors (including Ikh Mongol, Ikh Bogd Zam, DRJ and Tugs Zam LLC) were also involved in implementation. Guangzhou Wanan Construction Supervision Co., Ltd. was responsible for project supervision. A project commencement ceremony took place on June 10, 2017. The road was officially open to traffic on August 17, 2019.

📋 Staff Comments

The Chinese project title is 巴彦洪格尔省129.4公里省际公路项目. The Mongolian project title is БАЯНХОНГОР-БАЙДРАГИЙН ГҮҮР ЧИГЛЭЛИЙН 129.4 КМ ХАТУУ ХУЧИЛТТАЙ АВТО ЗАМЫН ТӨСӨЛ”-ИЙН.
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.
The PBC (loan) agreement can be accessed in its entirety via https://www.dropbox.com/s/893iwvl9pnqka1c/Mongolia%202016%20China%20Eximbank%20Loan%20for%20Bayankhongor-Baidrag%20Bridge%20Direction%20129.4%20km%20Road%20Construction%20Project.pdf?dl=0

📚 Sources & References

129.4 km paved road between Bayankhongor soum and Baidrag Bridge opens
Bilateral cooperation documents signed
China Overseas Development Finance
China-constructed 129.4-kilometer highway in Mongolia opens to traffic
DEVELOPMENT COOPERATION BETWEEN THE GOVERNMENT OF MONGOLIA AND THE GOVERNMENT OF PEOPLE’S REPUBLIC OF CHINA
PREFERENTIAL BUYER'S CREDIT LOAN AGREEMENT: Individual Loan Agreement on Bayankhongor-Baidrag Bridge Direction 129.4 km Road Construction Project, Автодороги будут построены за счёт льготного экспортного кредита, Айлчлалын хүрээнд 15 баримт бичигт гарын үсэг зурлаа, Баянхонгор - Байдрагийн гүүр хүртэлх 129,4 км замын нээлт боллоо, Баянхонгор-Байдраг чиглэлийн 129 км хатуу хучилттай авто замын ажлыг эхлүүллээ, БАЯНХОНГОР-БАЙДРАГИЙН ГҮҮР ЧИГЛЭЛИЙН 129.4 КМ АВТО ЗАМ БАРИХ ТӨСӨЛ, ЗАСГИЙН ГАЗРЫН ГАДААДЫН ЗЭЭЛ, ТУСЛАМЖИЙН ХӨРӨНГӨӨР 2018 ОНЫ ТӨСВИЙН ЖИЛД ХЭРЭГЖҮҮЛЭХЭЭР ТӨЛӨВЛӨЖ БУЙ ТӨСӨЛ, АРГА ХЭМЖЭЭ, МОНГОЛ УЛСЫН ЗАСГИЙН ГАЗАР, БҮГД НАЙРАМДАХ ХЯТАД АРД УЛСЫН ЗАСГИЙН ГАЗАР ХООРОНДЫН ХАМТЫН АЖИЛЛАГААНЫ ТУХАЙ, УЛС, ОРОН НУТГИЙН ТӨСВИЙН ХӨРӨНГӨӨР ХӨРӨНГӨ ОРУУЛАЛТ, ТӨСӨЛ ХӨТӨЛБӨР, АРГА ХЭМЖЭЭ, АЖИЛ ҮЙЛЧИЛГЭЭ ГҮЙЦЭТГЭЖ БАЙГАА АЖ АХУЙН НЭГЖ БАЙГУУЛЛАГЫН МЭДЭЭЛЭЛ ТАЙЛАГНАХ МАЯГТ, “БАЯНХОНГОР-БАЙДРАГИЙН ГҮҮР ЧИГЛЭЛИЙН 129.4 КМ ХАТУУ ХУЧИЛТТАЙ АВТО ЗАМЫН ТӨСӨЛ”-ИЙН ТОВЧ ТАНИЛЦУУЛГА
巴彦洪戈尔
巴彦洪格尔省129.4公里省际公路项目开工仪式隆重举行
巴彦洪格尔省129.4公里省际公路项目开工仪式隆重举行
巴彦洪格尔省129.4公里省际公路项目开工仪式隆重举行
蒙古129.4公里道路项目举行竣工通车典礼 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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