Completed Mixed AidData Chinese Aid

China Eximbank provides $44.43 million preferential buyer’s credit for 114 km Tosontsengel-Uliastai Road Construction Project

$44.43M USD

Funder	Export-Import Bank of China (China Eximbank)
Recipient Organization	Government of Mongolia
Country	Mongolia
Start Date	Jul 14, 2016
End Date	Oct 13, 2030
Duration	5,204 days
Number of Grantees	1
Roles	Recipient
Data Source	AidData Chinese Aid
Grant ID	`85698`

Grant Description

China Eximbank provides $44.43 million preferential buyer’s credit for 114 km Tosontsengel-Uliastai Road Construction 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 in Record ID#49148).

📋 Loan / Grant Terms

💰 Loan Amountagreement

📅 Maturity20 years

⏳ Grace Period7 years

💹 Interest Rate2%

Then, on July 14, 2016, China Eximbank and the Government of Mongolia signed a $44,433,534.39 subsidiary loan (PBC) agreement [CHINA EXIMBANK PBC 2016 (21) TOTAL (409)] for the 114 km Tosontsengel-Uliastai Road Construction Project.

The borrower was responsible for making 26 equal, semi-annual repayments (worth $1,708,982.09) after the expiration of the loan’s grace period.

The proceeds of the PBC were to be used by the borrower to finance two contracts: an EPC (turnkey) contract between Xinjiang Beixin Road & Bridge Group Co., Ltd. and Mongolia’s Ministry of Roads and Transportation Development, which was signed on April 15, 2016; and a $2.2 million supervision and consulting contract between Mongolia’s Ministry of Roads and Transportation Development and Guangzhou Wanan Construction Supervision Co., Ltd, which was signed on May 18, 2016.

The purpose of the project was to construct a 114 km paved road (A1102) from Tosontsengel to Uliastai (Улиастай). The road was designed to be 7 meters wide, 5 cm thick asphalt paved, and 1.5 meters wide gravel curbs on both sides.

It begins from the center of Tosontsengel soum within the Zavkhan aimag to the 67km checkpoint within the Uliastai soum (at the foot of Zagastai pass). Xinjiang Beixin Road & Bridge Group Co., Ltd. was the general EPC contractor responsible for implementation.

However, “Diamond Road” LLC, “Enkh Tugul Bekh” LLC, and “Dlubu XP” LLC were also involved in implementation as subcontractors. Guangzhou Wanan Construction Supervision Co., Ltd was responsible for project supervision. The project commenced on July 26, 2017 and the road was officially commissioned and put into use on August 8, 2019.

📋 Staff Comments

The Chinese project title is 陶松臣格勒至乌里亚斯台方向114.2公里公路工程项目 or 陶松青格勒-乌力亚斯台方向114公里道路项目. The Russian project title is “Тосонцэнгэл-Улиастай чиглэлийн 114 км автозам барих” 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.
The loan (PBC) agreement can be accessed in its entirety via https://www.dropbox.com/s/g4a6am2x8w03rvt/Mongolia%202016%20China%20Eximbank%20Loan%20for%20Tosontsengel-Uliastai%20Direction%20114%20km%20Road%20Construction%20Project.pdf?dl=0

📚 Sources & References

Bilateral cooperation documents signed
MNT 41.4 billion required for building of Tosontsengel-Uliastai road
Preferential Buyer's Credit Loan Agreement
PREFERENTIAL BUYER'S CREDIT LOAN AGREEMENT: Individual Loan Agreement on Tosontsengel-Uliastai Direction 114 km Road Construction Project, Айлчлалын хүрээнд 15 баримт бичигт гарын үсэг зурлаа, ЗАСГИЙН ГАЗРЫН ГАДААДЫН ЗЭЭЛ, ТУСЛАМЖИЙН АШИГЛАЛТЫН УЛИРЛЫН МЭДЭЭ, МОНГОЛ УЛСЫН ЗАСГИЙН ГАЗАР, БҮГД НАЙРАМДАХ ХЯТАД АРД УЛСЫН ЗАСГИЙН ГАЗАР ХООРОНДЫН ХАМТЫН АЖИЛЛАГААНЫ ТУХАЙ, Тосонцэнгэл, Улиастай чиглэлийн 114 км зам ашиглалтад орлоо, ТОСОНЦЭНГЭЛ-УЛИАСТАЙ ЧИГЛЭЛИЙН 114 КМ АВТО ЗАМ БАРИХ ТӨСӨЛ, Тосонцэнгэл-Улиастай чиглэлийн 114 км хатуу хучилттай автозамын ажлыг эхлүүллээ, УЛИАСТАЙН УУЛВАРААС БАЯНЗҮРХИЙН ТОВЧОО ХҮРТЭЛХ ЗАМЫН АСУУДЛААР САНАЛ СОЛИЛЦЛОО, “ТОСОНЦЭНГЭЛ-УЛИАСТАЙ ЧИГЛЭЛИЙН 114 КМ АВТО ЗАМ”-ЫН ТӨСЛИЙН ТОВЧ ТАНИЛЦУУЛГА
北新路桥集团国际事业部蒙古国陶乌项目通过验收
新疆北新路桥集团股份有限公司工程中标公告
新疆北新路桥集团股份有限公司工程中标公告 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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