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China Eximbank provides $51.8 million preferential buyer’s credit for Phase 2 of Orsha Linen Mill Modernization Project
| Funder | Export-Import Bank of China (China Eximbank) |
|---|---|
| Recipient Organization | Government of Belarus |
| Country | Belarus |
| Start Date | May 11, 2015 |
| End Date | Jan 19, 2026 |
| Duration | 3,906 days |
| Number of Grantees | 1 |
| Roles | Recipient |
| Data Source | AidData Chinese Aid |
| Grant ID | 66960 |
Grant Description
China Eximbank provides $51.8 million preferential buyer’s credit for Phase 2 of Orsha Linen Mill Modernization Project On December 30, 2015, China Eximbank and the Government of Belarus signed a $51,834,700 preferential buyer’s credit (PBC) agreement [CHINA EXIMBANK № PBC (2015) 44 (387)] for Phase 2 of the Orsha Linen Mill Modernization Project.
The PBC carries a maturity of 15-years. Its interest rate and grace period are unknown. BSP-Sberbank OJSC is the loan servicing agent.
The proceeds of the PBC were on-lent from the Government of Belarus to a state-owned company called RUPTP Orsha Linen Mill (РУПТП Оршанский льнокомбинат), which in turn used the proceeds to finance 85% of the cost ($60.982 million) of its commercial (EPC) contract with CITIC Construction, which was signed on May 11, 2015.
The purpose of this project was to upgrade and reconstruct the Orsha Linen Mill (Orša Flax Mill), which is a textile enterprise in the city of Orsha that processes linen fiber and produces linen fabrics. Upon completion of the project, it was envisaged that the processing capacity of the factory would increase by 80%.
Labor costs were also expected to fall by 45% and value-added per worker was expected to rise to $15,100 per year. CITIC Construction was the EPC contractor responsible for implementation. This project was implemented between 2015 and 2017.
On December 11, 2017, the Vitebsk State Construction Supervision Bureau of the National Standards Committee of Belarus formally issued a project acceptance certificate, which marked the successful completion of the project.
Staff Comments
This project is also known as Phase 2 of Orsha Flax Mill Modernization Project, Orsha Flax Mill Technological Transformation Project, and the Second Phase of the Project to Upgrade Orša Flax Factory. The Chinese project title is 白俄罗斯奥尔沙亚麻厂技改项目 or 奥尔沙亚麻联合厂. The Russian project title is проекта «Модернизация РУПТП «Оршанский льнокомбинат» or модернизацию второй фабрики Оршанского льнокомбината or Оршанский льнокомбинат. The China Eximbank loan that supported this project is not included in the Overseas Development Finance Dataset published by Boston University’s Global Development Policy Center in December 2020. The Government of Belarus’ sovereign bond prospectus states that the Chinese Government has lent $51.8 million to the Government of Belarus for textile industry activities. This amount is almost exactly equivalent to the face value of the China Eximbank loan that supported Phase 2 of the Orsha Linen Mill Modernization Project.
Sources & References
- Где «застряли» китайские миллиарды
- Information on investment regulations adopted in the Republic of Belarus in January - February 2016
- Belarus plans to raise $52m loan from China Eximbank to upgrade Orsha Linen Mill, Около $52 млн кредита Эксимбанка Китая планируется привлечь на модернизацию Оршанского льнокомбината, Нехватка отечественного сырья остается одной из ключевых проблем Оршанского льнокомбината
- Republic of Belarus Prospectus 2018, 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), УКАЗ ПРЕЗИДЕНТА РЕСПУБЛИКИ БЕЛАРУСЬ
- 白俄罗斯奥尔沙亚麻厂技改项目
- 中信建设白俄罗斯奥尔沙亚麻厂技改项目圆满竣工, Оршанский льнокомбинат, Оршанский Льнокомбинат – Официальный сайт, Оршанскому льнокомбинату возместят в 2019 году проценты по кредиту Экспортно-импортного банка Китая, - Законодательство Беларуси 2021 год, Указ Президента Республики Беларусь от 21 июля 2015 года № 335 О внесении изменений и дополнений в Указ Президента Республики Беларусь, Для второго этапа модернизации Оршанского льнокомбината привлекут китайский кредит на сумму около 52 миллионов долларов. Читать дальше: https://sputnik.by/economy/20160101/1019348662.html, На модернизацию второй фабрики Оршанского льнокомбината предполагается привлечь кредит КНР, Благодаря модернизации на фабрике №2 Оршанского льнокомбината полностью обновились ее мощности, История, 9 августа 2011 г. состоится заседание Президиума Совета Министров Республики Беларусь
- 融入“一带一路”建设 升华中白国际友谊 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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