Completed Mixed AidData Chinese Aid

China Eximbank provides $22.95 million preferential buyer’s credit for Phase 1 of Agricultural Machinery Equipment Acquisition Project (Linked to Record ID#40435, #47040, #67123)

$22.95M USD

Funder	Export-Import Bank of China (China Eximbank)
Recipient Organization	Government of Mongolia
Country	Mongolia
Start Date	Jan 01, 2011
End Date	Mar 08, 2026
Duration	5,545 days
Number of Grantees	1
Roles	Recipient
Data Source	AidData Chinese Aid
Grant ID	`73192`

Grant Description

China Eximbank provides $22.95 million preferential buyer’s credit for Phase 1 of Agricultural Machinery Equipment Acquisition Project On April 10, 2012, China Eximbank and the Government of Mongolia signed a preferential buyer’s credit (PBC) agreement for Phase 1 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 (captured in 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 85% ($22.95 million) of a $27 million purchase contract with Lovol Heavy Industry Co., Ltd, which was signed on February 2012. The purpose of the project was to facilitate the acquisition of agricultural machinery and equipment.

The expected period of project implementation was April 2012 to September 2012.

On September 11, 2012, a delivery ceremony for 8,000 tractors and 8,000 agricultural machinery provided by Lovol Heavy Industry Co., Ltd was held in Mongolia.

China Eximbank also financed Phases 2 and 3 of the Agricultural Machinery Equipment Acquisition Project (captured in Record ID#47040 and ID#67123).

📋 Staff Comments

The Chinese project title is 款农机设备采购项目. The Mongolian project title is “Бага оврын хөдөө аж ахуйн трактор худалдан авах I” төсөл. The Mongolian transition of the loan agreement that was signed on April 10, 2012 is Монгол Улсын Сангийн яам, БНХАУ-ын Экспорт, импорт банк хоорондын хөдөө аж ахуйн бага оврын трактор худалдан авах төслийн тусгайлсан зээлийн хэлэлцээр.
The face value of the PBC that supported this project is unknown. Per China Eximbank’s policy that a PBC can be used to finance up to 85% of the cost of a commercial contract, AidData has recorded the face value of the PBC (i.e. the transaction amount) as 85% of $27 million ($22.95 million).
The China Eximbank PBC 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.

📚 Sources & References

王小龙大使出席福田雷沃8000台拖拉机及8000台农机具交付仪式
中蒙农业合作之路越走越宽雷沃重工再获蒙古国大订单
THE PEOPLE'S REPUBLIC OF CHINA, МОНГОЛ УЛС, БНХАУ-ЫН ХООРОНДЫН ХУДАЛДАА, ЭДИЙН ЗАСГИЙН ХАМТЫН АЖИЛЛАГААНЫ ТУХАЙ ТОВЧ ТАНИЛЦУУЛГА, ЗЭЭЛИЙН ЕРӨНХИЙ ХЭЛЭЛЦЭЭР СОЁРХОН БАТЛАХ ТУХАЙ
FOTON LOVOL Successfully Delivered Order Valued 100-million RMB to Mongolia
FOTON LOVOL holds Delivery Ceremony of 8000 tractors and 8000 sets of agricultural implements in Mongolia
FOTON LOVOL wins the largest order of exporting agricultural equipment products in China
China Overseas Development Finance 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.