Completed Mixed AidData Chinese Aid

China Eximbank provides $24.5 million preferential buyer’s credit for Phase 3 of Agricultural Machinery Equipment Acquisition Project (Linked to Record ID#73192, #47040, #40435)

$24.5M USD

Funder	Export-Import Bank of China (China Eximbank)
Recipient Organization	Government of Mongolia
Country	Mongolia
Start Date	Jan 01, 2018
End Date	Jul 23, 2027
Duration	3,490 days
Number of Grantees	1
Roles	Recipient
Data Source	AidData Chinese Aid
Grant ID	`67123`

Grant Description

China Eximbank provides $24.5 million preferential buyer’s credit for Phase 3 of Agricultural Machinery Equipment Acquisition Project In 2018, China Eximbank and the Government of Mongolia signed a $24.5 million preferential buyer’s credit (PBC) agreement for Phase 3 of the Agricultural Machinery Equipment Acquisition Project.

The PBC was approved under a $500 million line of credit for various projects that was signed by the two governments on June 16, 2011 (see Umbrella Record ID#40435).

📋 Loan / Grant Terms

📅 Maturity20 years

⏳ Grace Period7 years

💹 Interest Rate2%

The proceeds of the PBC were to be used by the borrower to partially finance a purchase contract with Lovol Heavy Industry Co., Ltd. The purpose of the project was to facilitate the acquisition of agricultural machinery and equipment.

The project was completed on May 23, 2019 when 797 sets of large tractors and combine harvesters were successfully delivered (including 180 tractors with 50-165 horsepower and haymaking equipment).

Upon completion, the project was expected increase the technical capacity of the agricultural labor force by 10 percent, prepare 100,000 tons of hay and fodder, 10,000 tons of fodder per year, irrigate 9,200 hectares of crops, irrigate 450 hectares of potatoes and vegetables, and irrigate 240 hectares of fruits and vegetables.

📋 Staff Comments

This project is also known as the Support the Production of Agricultural Products Project and the Project on supporting production of agricultural products. The Chinese project title is 采购大型农业机械项目(三期) or 中蒙合作农机采购项目. The Mongolian project title is “Хөдөө аж ахуйн бүтээгдэхүүний үйлдвэрлэлийг дэмжих” төсөл.
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.
Since this loan agreement was signed in 2018, it's possible that this subsidiary loan was carried out under a general preferential buyer's credit agreement signed in 2015 (Project ID #49148). This issue warrants further investigation.
Phase 1 is captured in Project ID #73192, Phase 2 is captured in Project ID #47040, and Phase 3 is captured in Project ID #67123.

📚 Sources & References

DEVELOPMENT COOPERATION BETWEEN THE GOV...REPUBIC OF C…inistry of Finance
邢海明大使出席“一带一路·发展之路”中蒙合作农机采购项目交机仪式
中蒙合作农机采购项目交机仪式在乌兰巴托举行
中蒙农业合作之路越走越宽雷沃重工再获蒙古国大订单, “ХАА-н үйлдвэрлэлийг дэмжих” төслийн эхний ээлжийн техник тоног төхөөрөмжүүдийг оруулж ирлээ, Элчин сайд Шин Хаймин 'Нэг бүс нэг зам · Хөгжлийн зам' –ын Хөдөө аж ахуйн бүтээгдэхүүний үйлдвэрлэлийг дэмжих төслийн тоног төхөөрөмжийг хүлээлгэж өгөх ёслолд оролцлоо, ЗАСГИЙН ГАЗРЫН ГАДААДЫН ЗЭЭЛ, ТУСЛАМЖИЙН ХӨРӨНГӨӨР 2018 ОНЫ ТӨСВИЙН ЖИЛД ХЭРЭГЖҮҮЛЭХЭЭР ТӨЛӨВЛӨЖ БУЙ ТӨСӨЛ, АРГА ХЭМЖЭЭ
Official Document
中国向蒙古国交付第三期优买贷款采购项目
邢海明大使出席“一带一路·发展之路”中蒙合作农机采购项目交机仪式
Invitation for Bid (No.: NCB/17/CGL/17-03-SAP)
China Overseas Development Finance
Source 152806 Translated Document 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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