China Eximbank provides $281.1 million preferential buyer’s credit for the 1st Stage of the Dushanbe-Khujand-Chanak Road Construction Project (Linked to Project ID#40351)

On June 15, 2006, at the Shanghai Cooperation Organization (SCO) summit, China Eximbank and the Ministry of Finance of the Republic of Tajikistan signed a $281,105,000 preferential buyer’s credit (PBC) agreement for the 1st Stage of the Dushanbe-Khujand-Chanak Road Construction Project. The PBC carried the following borrowing terms: a maturity of 20 years, a grace period of 5 to 7 years, and an interest rate of 2%. The borrower was expected to use the proceeds of the PBC to finance 95% of the cost of a $295.9 million commercial contract with China Road and Bridge Corporation (CRBC). The loan was originally scheduled to disburse in 3 annual tranches: $112.4 million in 2007, $112.4 million in 2008, and $56.2 million in 2009. CRBC was the contractor responsible for project implementation. Construction began on July 11, 2006. The construction period was originally scheduled to be 38 months in duration. The highway was commissioned in 2010, but work continued on the Shahristan tunnel. The project was completed on October 27, 2012, with an opening ceremony for the Shahristan tunnel that was attended by President of Tajikistan Emomali Rahmon. Earlier, in March 2006, China and Tajikistan signed a Memorandum of Understanding that stated the terms of preferential credits issuance for promotion of economic and social development of SCO members. One of the financing projects identified was this road project. The purpose of the project — also known as the Tajikistan-Uzbekistan Highway Rehabilitation/Reconstruction Project — was to reconstruct the 354 km highway connecting Dushanbe with Khujand, the center of the northern province, and the town of Chanak on the border with Uzbekistan. The project also involved the construction of the 5253 meter Shahristan tunnel (at a cost of $88,424), the 1047 meter Dusti tunnel, the Maikhura tunnel, 39 big and small bridges, and 6 km of avalanche defenses. The project reportedly reduced driving times from 12 hours to 4 hours and the Shahristan tunnel was reportedly the longest tunnel in Central Asia when it completed. To help repay the loan and cover the costs of maintaining the road, the Tajik Government made the highway a toll road in 2010 and allowed the private company Innovative Road Solutions to collect tolls.

Additional details

1. The Russian project title is реабилитацию автомобильной дороги «Душанбе – Чанак». The Chinese project title is 塔乌（乌兹别克斯坦）公路. 2. The precise length of the grace period is unknown. For the time being, AidData takes the midpoint (6 years) of the 5-7 year range. 3. This project is linked to Project ID#40351, a RMB 60 million grant offered by the Chinese Government.

Number of official sources

24

Number of total sources

41