Completed Development AidData Chinese Aid

China Eximbank provides RMB 2.54 billion government concessional loan for Phase 2 of the Agro-Industrial Complex Project (Linked to Record ID#66525 and #67382)

¥2.54M RMB

Funder	Export-Import Bank of China (China Eximbank)
Recipient Organization	JSC Belagroprombank
Country	Belarus
Start Date	Jun 11, 2018
End Date	Feb 25, 2028
Duration	3,546 days
Number of Grantees	1
Roles	Recipient
Data Source	AidData Chinese Aid
Grant ID	`66526`

Grant Description

China Eximbank provides RMB 2.54 billion government concessional loan for Phase 2 of the Agro-Industrial Complex Project On February 11, 2018, the Export-Import Bank of China (China Eximbank) and Belagroprombank — a state-owned bank in Belarus — signed two loan agreements for Phase 1 of the Agro-Industrial Complex Project: an RMB 1.75 billion government concessional loan (GCL) agreement [CHINA EXIMBANK GCL No. (2017) 36 TOTAL NO. (641)] and a $50 million USD buyer’s credit loan (BCL) agreement.

📋 Loan / Grant Terms

📅 Maturity15 years

It is collateralized against a cash deposit in an escrow (special) account at Belagroprombank where BNBC is expected to maintain a minimum cash balance equivalent to two semi-annual debt service (principal, interest, and fee) payments. The borrowing terms of the BCL, which is captured via Record ID#67382, are unknown.

Then, on June 11, 2018, China Eximbank and Belagroprombank signed an RMB 2.54 billion government concessional loan (GCL) agreement [CHINA EXIMBANK GCL No. (2017) 37 TOTAL NO. (642)] for Phase 2 of the Agro-Industrial Complex Project.

📋 Loan / Grant Terms

📅 Maturity15 years

It is collateralized against a cash deposit in an escrow (special) account at Belagroprombank where BNBC is expected to maintain a minimum cash balance equivalent to two semi-annual debt service (principal, interest, and fee) payments.

Belagroprombank on-lent the proceeds from the GCLs and the BCL to a minority state-owned special purpose vehicle (SPV) called CJSC Belarusian National Biotechnology Corporation (BNBC).

The proceeds from the GCLs and the BCL were then to be used by the ultimate borrower, BNBC, to finance a three-year, $853.19 million (RMB 4.29 billion) commercial engineering, procurement, and construction (EPC) contract between CITIC Construction Co., Ltd. and BNBC, which was signed on November 26, 2016.

The project involved the construction of a new amino acid plant, a high-tech balanced compound feed production plant, a grain silo project with drying facilities, a combined heat and power station, and supporting infrastructure (such as railways, highways, natural gas pipelines, and transmission lines) in Pukhovichi District within Minsk Oblast.

Upon completion, the agro-industrial complex is expected to process 250,000 tons of grain (wheat/triticale) per year and produce 64,700 tons of lysine, 5,900 tons of L-threonine, 1,300 tons of L-tryptophan, 23,000 tons of gluten, 99,000 tons of lysine-containing feed, 15,000 tons of ammonium sulfate crystals, and 10,000 tons of liquid ammonium sulfate.

The project was also expected meet the future needs of cattle breeders for ‘essential amino acids.’ Its products will be sold domestically and abroad. CITIC Construction Co., Ltd. is the EPC contractor responsible for implementation.

Construction commenced on July 27, 2018 and was originally expected to last for 36 months (estimated end date: July 27, 2021). On March 26, 2019, a formal groundbreaking ceremony for the Belarusian agro-industrial complex project took place. By end of 2020, the project had achieved a 73% completion rate.

On October 31, 2021, CITIC Construction Co., Ltd. produced the first batch of lysine sulfate. Then, on November 8, 2021, CITIC Construction Co., Ltd. produced the first batch of first wheat gluten. Then, on December 21, 2021, CITIC Construction Co., Ltd. produced the first batch of threonine.

The construction of all Phase 1 and Phase 2 facilities was completed in December 2021 and all facilities were put into operation in November 2022.

On August 6, 2020, CITIC Construction Co., Ltd. and BNBC signed a $547 million (RMB 3.8 billion) general EPC contract for Phase 3 of the Agro-Industrial Complex Project.

A Phase 3 feasibility study was subsequently completed and Phase 2 was approved by a Government of Belarus Commission for Foreign Exchange and Credit.

Then, on November 5, 2021, CITIC Construction Co., Ltd. and BNBC signed a revised EPC contract for Phase 3 of the Agro-Industrial Complex Project worth RMB 4.8 billion.

Yang Jianqiang, Deputy President of CITIC Construction Co., Ltd. and Danil Uritsky, General Director of BNBC, signed the contract on behalf of their respective organizations at the project site.

📋 Staff Comments

This project is also known as Phase I of Hi-Tech Agro-Industrial Full Cycle Complex Project for 2016-2032, the First Stage of a High-Tech Agribusiness Project in Pukhovichi District, the First Stage of the Hi-Tech Agro-Industrial Full Cycle Complex Project for 2016-2032, and the Organization high-tech agro-industrial production of complete cycle for 2016 - 2032 (Stage 1) Project. The Russian project title is «Организация высокотехнологичного агропромышленного производства полного цикла на 2016 – 2032 годы» (I этап). The Chinese project title is 白俄罗斯全循环高科技农工综合体项目 or 高科技农工生产项目（二期] or 白俄罗斯全循环高科技农工综合体项目 or 2０1６－２０３２年全循环高科技农工综合体.
None of the China Eximbank loans that supported this project are included in the China’s Overseas Development Finance Dataset that Boston University's Global Development Policy Center published in December 2020.
Some sources claim that Bank of China rather than China Eximbank provided a $50 million USD loan for this project. This issue merits further investigation.
CJSC Belarusian National Biotechnology Corporation (BNBC) is a special purpose vehicle that is minority-owned by the Government of Belarus. It is a joint venture of the Government of Belarus (a 25% ownership stake), CITIC Construction Co., Ltd. (a 20% ownership stake), COFCO Corporation (a 9% ownership stake), Russian Viren-Invest (a1% ownership stake). Two Scottish companies (Maxforce LP and Altastar LP) and two companies from the United Arab Emirates (Al Salaam Biotech Investments Ltd and Al Ziad Agro Investments Ltd) collectively hold a 45% ownership stake in BNBC. The Russian name and abbreviation for CJSC Belarusian National Biotechnology Corporation (BNBC) is ЗАО «Белорусская национальная биотехнологическая корпорация» (ЗАО «БНБК»). BNBC's website can be found here: https://bnbc.by/.
The agro-industrial complex uses modern biotechnology to deeply process the grains of crops, produce irreplaceable amino acids (lysine, tryptophan, etc.), and further produce high-yield and high-tech balanced compound feed and biological activator. The complex consists of a lysine plant with an annual output of 50,000 tons, a tryptophan plant with an annual output of 5,000 tons, a high-tech balanced compound feed production plant with an annual output of 1 million tons, an oil crop processing plant with an annual output of 300,000 tons, 600,000-ton silos and grain depots with drying facilities, construction of a grain raw material production base with an annual output of 1 million tons, supporting infrastructure projects, and on-site pipe networks.

📚 Sources & References

Belarusian Biotechnology Corporation starts building high-tech agricultural company
Chairman of CITIC Group Chang Zhenming Attends Groundbreaking Ceremony of Belarus Agro-industrial Complex Project
中企承建的白俄罗斯大型农工综合体项目开工建设, ПОСТАНОВЛЕНИЕ СОВЕТА МИНИСТРОВ РЕСПУБЛИКИ БЕЛАРУСЬ 8 июня 2018 г. № 440
China to grant loans worth $680 mln for agriculture project in Belarus
Belarus to take out RMB2.54bn credit from China govt to implement agricultural project
The Export-Import Bank and the Ministry of Finance of Belarus signed a loan agreement for the full-circulation high-tech agricultural production project(Phase II)
进出口银行与白俄罗斯财政部签署全循环高科技农工生产项目（二期）贷款协议
AGRO-HOLDING NEWS; Belarus begins building $733 mln full-cycle agricultural complex, Об организации высокотехнологичного агропромышленного производства полного цикла, Сельское хозяйство
Belarus to take out RMB2.54bn credit from China govt to implement agricultural project, ПЕРЕЧЕНЬвнешних государственных займов, обслуживание и погашение которых осуществляются с привлечением средств республиканского бюджета ( LIST of external government loans, servicing and repayment of which are carried out with the involvement of funds from the republican budget)
白俄罗斯农工综合体项目
白俄罗斯总统召开会议研究全循环高科技农工综合体项目建设进展
Belarusian-China Intergovernmental Committee on Cooperation
Belarus state to contribute $2.5 million to biotech corporation's statutory fund
CITIC Limited Annual Report
CJSC Belarus National Biotechnology Corporation Presentation, БНБК, УКАЗ ПРЕЗИДЕНТА РЕСПУБЛИКИ БЕЛАРУСЬ, Указ Президент РБ 175 11.05.2018 Об изменении Указа Президента Республики Беларусь, Постановление СМ РБ 657 11.09.2018 О реализации Кредитного соглашения Подробнее: https://zakony-by.com/norm_akt/source-%D0%A1%D0%9C%20%D0%A0%D0%91/type-%D0%9F%D0%BE%D1%81%D1%82%D0%B0%D0%BD%D0%BE%D0%B2%D0%BB%D0%B5%D0%BD%D0%B8%D0%B5/657-11.09.2018.htm 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.

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JSC Belagroprombank

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