Completed Mixed AidData Chinese Aid

China Eximbank provides $113.04 million preferential buyer’s credit for Ulaanbaatar-Mandalay Gobi Transmission Line Project (Linked to Record ID#49148)

$113.05M USD

Funder	Export-Import Bank of China (China Eximbank)
Recipient Organization	Government of Mongolia
Country	Mongolia
Start Date	May 15, 2017
End Date	Apr 21, 2030
Duration	4,724 days
Number of Grantees	1
Roles	Recipient
Data Source	AidData Chinese Aid
Grant ID	`72302`

Grant Description

China Eximbank provides $113.04 million preferential buyer’s credit for Ulaanbaatar-Mandalay Gobi Transmission Line 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 via Record ID#49148).

📋 Loan / Grant Terms

💰 Loan Amountagreement

📅 Maturity20 years

⏳ Grace Period7 years

💹 Interest Rate2%

Then, on May 15, 2017, China Eximbank and the Government of Mongolia signed a $113,049,692 subsidiary loan (PBC) agreement [CHINA EXIMBANK PBC 2017 (18) TOTAL NO. (444)] for the Ulaanbaatar-Mandalay Gobi Transmission Line Project. The PBC agreement officially went into effect on September 21, 2017 (after the borrower met all conditions precedent).

The proceeds of the PBC (loan) were to be used by the borrower to finance 95% of the cost of a $118,999,676 million EPC (commercial) contract between Mongolia’s Ministry of Energy and TBEA Co., Ltd., which was signed on July 5, 2016.

The purpose of the project was to construct a 330 kV transmission line — measuring 250km in length — between Ulaanbaatar and Mandalay Gobi (Mandalgobi) and evacuate power from the 330MW Tavan Tolgoi power station. It also involved the construction of a 220 kV substation in Mandalgobi.

Upon completion, the transmission line was expected to supply Oyu Tolgoi, Tsagaansuvarga, Tavan Tolgoi and other mining deposits in the southern region with domestic energy (and reduce the use of foreign currency on energy imports). TBEA Co., Ltd. was the contractor responsible for implementation. On June 21, 2017, a formal groundbreaking ceremony was held.

The transmission line went into operation on October 7, 2019. The project was officially completed and handed over to the local authorities on October 18, 2019.

📋 Staff Comments

This project is also known as the Ulaanbaatar-Mandalgobi Transmission Line Project. The Chinese project title is 乌兰巴托至曼德勒戈壁输变电项目 or 建的乌兰巴托—曼德勒戈壁330kV输变电项目 or 蒙古国330千伏输变电工程 or 第一条跨区域高压输变电线路（乌兰巴托至曼德勒戈壁输变电线路. The Mongolian project title is “УБ-Мандалговь цахилгаан дамжуулах агаарын шугам, дэд станц барих” төсөл or Улаанбаатар – Мандалговийн цахилгаан дамжуулах агаарын шугам, дэд станцууд барих.
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/yyek06kd44bxds4/Mongolia%202017%20China%20Eximbank%20Loan%20for%20UB-Mandalgovy%20overhead%20line%20and%20substation%20construction%20project.pdf?dl=0.

📚 Sources & References

'Улаанбаатар-Мандалговь' цахилгаан дамжуулах агаарын шугам, дэд станцыг хүлээлгэн өглөө, 330 kV Ulaanbaatar-Mandalgobi transmission line commissioned
Cabinet approves draft agreements on infrastructure development
China Overseas Development Finance
Construction of UB - Mandalgobi electric line and sub-station starts
Contract between TBEA and Government of Mongolia
Form of Notice of Effectiveness of Loan Agreement
GOVERNMENT FOREIGN LOAN USAGE QUARTERLY DATA
Mongolia Awards the Highest Honor to TBEA!
Mongolia to receive USD 1 billion loan from China
Mongolia's Highest Voltage Level Power Transmission and Distribution Project Built by TBEA Completed
Tavan Tolgoi power station (Rio Tinto)
USS 113,049,692 PREFERENTIAL BUYER'S CREDIT LOAN AGREEMENT Individual Loan Agreement on Ulaanbaatar-Mandalgobi Transmission Overhead Line and Substation Construction Project, ЗАСГИЙН ГАЗРЫН ГАДААДЫН ЗЭЭЛ, ТУСЛАМЖИЙН ХӨРӨНГӨӨР 2018 ОНЫ ТӨСВИЙН ЖИЛД ХЭРЭГЖҮҮЛЭХЭЭР ТӨЛӨВЛӨЖ БУЙ ТӨСӨЛ, АРГА ХЭМЖЭЭ, ЗАСГИЙН ГАЗРЫН ГАДААДЫН ЗЭЭЛ, ТУСЛАМЖИЙН ХӨРӨНГӨӨР 2018 ОНЫ ТӨСВИЙН ЖИЛД ХЭРЭГЖҮҮЛЭХЭЭРТӨЛӨВЛӨЖ БУЙ ТӨСӨЛ, АРГА ХЭМЖЭЭ, УЛААНБААТАР – МАНДАЛГОВИЙН 330 КВ-ЫН ОВОРТОЙ 249 КМ УРТ ЦАХИЛГААН ДАМЖУУЛАХ АГААРЫН ШУГАМ, ДЭД СТАНЦУУДЫГ АШИГЛАЛТАД ХҮЛЭЭЛГЭН ӨГӨВ, УЛААНБААТАР- МАНДАЛГОВИЙН 330 КВ-ЫН ОВОРТОЙ 249 КМ УРТ 220 КВ-ЫН ЦДАШ, ДЭД СТАНЦЫГ АШИГЛАЛТАД ХҮЛЭЭЛГЭН ӨГЛӨӨ, УЛААНБААТАР-МАНДАЛГОВИЙН ЦДАШ, ДЭД СТАНЦЫН БАРИЛГА УГСРАЛТЫН ШАВЫГ ТАВИЛАА, УЛААНБААТАР-МАНДАЛГОВЬ ЦАХИЛГААН ДАМЖУУЛАХ АГААРЫН ШУГАМ, ДЭД СТАНЦ БАРИХ ТӨСӨЛ, “Улаанбаатар-Мандалговь цахилгаан дамжуулах агаарын шугам, дэд станц барих” төслийг хэлэлцэн дэмжлээ, 【建设公司】蒙古国330千伏输变电工程开始展放牵引线, 【建设公司】蒙古国乌曼变电站工程一次带电成功
中企承建的蒙古国跨区域高压输变电项目竣工
特变电工承建的蒙古国最高电压等级输变电项目竣工
蒙古国把这个最高荣誉颁给了特变电工！
驻蒙古使馆临时代办杨庆东出席乌兰巴托至曼德勒戈壁输变电项目开工典礼
驻蒙古大使邢海明出席乌兰巴托至曼德勒戈壁输变电工程项目竣工仪式 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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