Narrative
Full Description
Project narrative
On December 29, 2002, the Export-Import Bank of China signed a $172 million loan agreement with Kazakhstan Temir Zholy (also known as National Company Kazakhstan Temir Zholy) — the national railway company of Kazakhstan — to finance the acquisition of new 152 Chinese locomotives. The loan covered approximately 86% of the $200 million cost of the locomotives. The loan carried a maturity of 14 years, a grace period of 4 years, and an interest rate of 5.6%. It did not receive a sovereign guarantee from the Government of Kazakhstan. Prior to this project, Kazakhstan Temir Zholy had not renewed its locomotive depot in eight years. The China Northern Locomotive & Rolling Stock Industry Corporation provided the locomotives: two Dongfeng diesel locomotives with General Electric traction packages were to be imported from China, while another 150 were to be assembled in Shu in the Jambyl Region by 2009.
Staff comments
1. The precise loan commitment date is ambiguous; an agreement was signed by December 29, 2002, when the loan was announced at a management meeting, but it is unclear if the loan agreement was signed at that meeting. This issue warrants further investigation.