Completed Mixed AidData Chinese Aid

China Eximbank provides $7.2 million preferential buyer’s credit for Ulaanbaatar-Khushigt Valley New Airport Highway Consultancy Service Project (Linked to Record ID#49208)

$7.21M USD

Funder	Export-Import Bank of China (China Eximbank)
Recipient Organization	Government of Mongolia
Country	Mongolia
Start Date	Jul 14, 2016
End Date	Sep 13, 2028
Duration	4,444 days
Number of Grantees	1
Roles	Recipient
Data Source	AidData Chinese Aid
Grant ID	`97779`

Grant Description

China Eximbank provides $7.2 million preferential buyer’s credit for Ulaanbaatar-Khushigt Valley New Airport Highway Consultancy Service 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 subsequently signed two subsidiary loan (PBC) agreements: a $140,335,893.00 loan (PBC) agreement for the Ulaanbaatar-Khushigt Valley New Airport Highway Construction Project and a $7,207,921 loan (PBC) agreement [CHINA EXIMBANK PBC 2016 (19) TOTAL (407)] for the Ulaanbaatar-Khushigt Valley New Airport Highway Consultancy Service Project.

The proceeds from the first PBC were to be used by the borrower to finance 100% of the cost of a $140,335,893 EPC (turnkey) contract between China Railway 4th Bureau Group (also known as China Tiesiju Civil Engineering Group Co., Ltd. or CTCE) and Mongolia’s Ministry of Roads and Transportation Development, which was signed on September 18, 2015 (and possibly amended on June 6, 2016).

The proceeds from the second PBC were to be used by the borrower to finance 100% of the cost of a $7,207,921 supervision and consulting contract between Mongolia’s Ministry of Roads and Transportation Development and Guangzhou Wanan Construction Supervision Co., Ltd and "SRP Engineer Consulting Mongolia" LLC , which was signed on May 18, 2016.

The purpose of the project was to construct a 32.226 km, two-way, six-lane expressway from Yarmag toll station to the new international airport in Khushig Valley and Tuv Province (Khushig Valley International Airport). The expressway passes through Sergelen soum of Tuv aimag, Altanbulag soum and Khan-Uul district.

CTCE was the general EPC contractor responsible for implementation.

However, “Arj Capital” LLC, “Erdene Zam” LLC and “Badrakh Oil” LLC were also involved in implementation as subcontractors. Guangzhou Wanan Construction Supervision Co., Ltd was responsible for project supervision. Construction commenced on May 6, 2016 and ended on October 12, 2018. The project was officially handed over to the local authorities on July 10, 2019.

📋 Staff Comments

1. The loan (PBC) agreement can be accessed in its entirety via https://www.dropbox.com/s/g47ysacy1k7r4zh/Mongolia%202016%20China%20Eximbank%20Loan%20for%20the%20Ulaanbaatar-Khushig%20Valley%20New%20Airport%20Road%20Construction%20Project.pdf?dl=0.”

📚 Sources & References

Mongolia 2016 China Eximbank Loan for the Ulaanbaatar-Khushig Valley New Airport Road Construction Project 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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