Completed Mixed AidData Chinese Aid

China Eximbank provides $51 million preferential buyer’s credit to provide additional support to 500 kV North-South Power Transmission Line Project and 220 kV Lolazor-Khatlon Transmission Line Project (Linked to Record ID#39984 and #39644)

$51M USD

Funder	Export-Import Bank of China (China Eximbank)
Recipient Organization	Tajikistan Ministry of Finance
Country	Tajikistan
Start Date	May 15, 2009
End Date	Sep 13, 2030
Duration	7,791 days
Number of Grantees	1
Roles	Recipient
Data Source	AidData Chinese Aid
Grant ID	`70910`

Grant Description

China Eximbank provides $51 million preferential buyer’s credit to provide additional support to 500 kV North-South Power Transmission Line Project and 220 kV Lolazor-Khatlon Transmission Line Project On May 15, 2009, China Eximbank and Government of Tajikistan signed a $51,000,000 preferential buyer’s credit (PBC) agreement to provide supplemental financing for the 500 kV North-South Power Transmission Line Project and 220 kV Lolazor-Khatlon Transmission Line Project.

Both of these projects were supported by China Eximbank loans issued in 2006 (as captured via Record ID#39984 and Record ID#39644).

📋 Loan / Grant Terms

💰 Loan Amountare unknown

However, it is known that the Government of Tajikistan used the proceeds from this PBC loan to on-lend to OHSHC “Barqi Tojik” -- a state-owned enterprise in Tajikistan responsible for the generation, transmission, and distribution of electricity and thermal energy -- at a 3% interest rate between May 29, 2007 and December 21, 2028.

OHSHC “Barqi Tojik” was expected to use the loan proceeds to partially finance a commercial contract with TBEA Co., Ltd.

The loan's amount outstanding was TJS 401,686,000 as of December 31, 2016, TJS 449,769,000 as of December 31, 2017, TJS 480,910,000 as of December 31, 2018, and TJS 413,643,000 as of December 31, 2019.

The purpose of the 500 kV North-South Power Transmission Line Project was to construct a 500 kV electricity transmission line that would connect the northern Sughd region to the national grid.

The project also expected to facilitate the effective dispatching of electricity between Dushanbe and Khujand, completely solve the problem of power shortage in the south during the dry season in winter, build a transmission channel for the implementation of the Tajik Hydropower Strategy, improve the safety, stability, and reliability of the power grid, and reduce the loss of electricity through transmission from 14% to 3.2%.

The purpose of the 220 kV Lolazor-Khatlon Transmission Line Project was to construct a 90 km, 220 kV electricity transmission line between Dangara and Kulab. The transmission line was designed to connect the southern region to the national grid.

It was also expected to provide the Khatlon region with electricity from the Sangtuda 1 and 2 hydroelectric power plants, and allow for the export of electricity to Afghanistan. The 220 kV Lolazor-Khatlon transmission line has a capacity of approximately 4 billion kWh of electricity a year. TBEA Co., Ltd. was the contractor responsible for the implementation of both projects.

The North-South transmission line has been operational since November 29, 2009. The Lolazor-Khatlon transmission line has been operational since June 25, 2008.

📋 Staff Comments

The project is linked to previous financial commitments for the 500 kV North-South Power Transmission Line Project (as captured via Record ID#39644) and the 220 kV Lolazor-Khatlon Transmission Line Project (as captured via Record ID#39984) in 2006.
For the time being, the interest rate field (3%) and the maturity field (19.5-years) are based on the interest rate and final maturity date identified in the subsidiary loan agreement with OHSHC “Barqi Tojik” rather than the PBC agreement with Tajikistan's Ministry of Finance. This issue warrants further investigation.
The Russian project title is проекта 'Реконструкция и строительство высоковольтной линии электропередач 500 кВ в районах республиканского подчинения'. The Chinese project title is 塔国输变电项目.

📚 Sources & References

Consolidated financial statements for the year ended December 31, 2018 and independent auditors’ report
BRI in Central Asia: Energy Connectivity Projects, Пресс-релизы : Подписание Кредитного соглашения между Правительством Республики Таджикистан и Экспортно – импортным банком Китая по проекту «Реабилитации автомобильной дороги Душанбе – Дангара, фаза I»
特变电工承建塔国输变电项目工程提前竣工
Tajikistan: Policy Notes on Public Expenditures
State Debt Report 2009
China as an Emerging Donor in Tajikistan and Kyrgyzstan
OPEN JOINT STOCK HOLDING COMPANY “BARQI TOJIK” Consolidated financial statements for the year ended December 31, 2017 and independent auditors’ report
Consolidated financial statements for the year ended December 31, 201 8, ОТКРЫТАЯ АКЦИОНЕРНАЯ ХОЛДИНГОВАЯ КОМПАНИЯ «БАРКИ ТОЧИК» Консолидированная финансовая отчетность за год, закончившийся 31 декабря 2019 г. и отчет независимых аудиторов, О ратификации Кредитного соглашения между Правительством Республики Таджикистан и Экспортно импортным банком Китая по дополнительному строительству линии электропередач 500 кВ 'Юг-Север' и 220 кВ 'Лолазор-Хатлон', Об образовании государственной приёмочной комиссии завершённого строительством объекта проекта 'Реконструкция и строительство высоковольтной линии электропередачи 500 кВ в районах республиканского подчинения'
OPEN JOINT-STOCK COMPANY 'BARKI TOCHIK' Consolidated financial statements for the year ended December 31, 2023 and independent auditors' report 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.