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Overview

[Cancelled] China Eximbank $1.4 billion USD loan for Atyrau Petrochemical Complex Construction Project (Linked to Record ID#53553 and #53547)

Commitments (Constant USD, 2023)$1,591,096,007
Commitment Year•2011Country of Activity•KazakhstanDirect Recipient Country of Incorporation•KazakhstanSector•Industry, Mining, ConstructionFlow Type•Loan

Status

Project lifecycle

Cancelled

Pipeline: PledgePipeline: CommitmentImplementationCompletion

Timeline

Key dates

Commitment date
Jan 1, 2011
End (planned)
Jan 1, 2014

Stakeholders

Organizations involved in projects and activities supported by financial and in-kind transfers from Chinese government and state-owned entities

Ultimate beneficial owners

At least 25% host country ownership

Funding agencies

State-owned Policy Banks

  • Export-Import Bank of China (China Eximbank)

Receiving agencies

State-owned Banks

  • Development Bank of Kazakhstan JSC (Baiterek or DBK)

Implementing agencies

Joint Venture/Special Purpose Vehicles

  • Kazakhstan Petrochemical Industries LLP (KPI)

State-owned Banks

  • Development Bank of Kazakhstan JSC (Baiterek or DBK)

State-owned companies

  • China Petroleum & Chemical Corporation (Sinopec Ltd.)
  • Sinopec Engineering (Group) Co., Ltd. (SEG)

Loan desecription

[Cancelled] China Eximbank $1.4 billion USD loan for Atyrau Petrochemical Complex Construction Project (Linked to Record ID#53553 and #53547)

Interest type•Unknown

Narrative

Full Description

Project narrative

In 2009, Kazakhstan Petrochemical Industries (KPI) LLP signed an Engineering, Procurement, and Construction (EPC) contract with Sinopec Engineering Co., Ltd. (through Sinopec Group subsidiary China Petroleum & Chemical Corporation) for the first stage of construction of Atyrau petrochemical project. On February 22, 2011, the Development Bank of Kazakhstan JSC (DBK) entered into a $1.4 billion USD credit agreement with the Export-Import Bank of China to finance the construction of the integrated petrochemical project. However, as of 2017, no amounts had been drawn down under this credit agreement. This was due to the mutual termination of the EPC contract between KPI and Sinopec in August 2014. Therefore, AidData has assumed that the China Eximbank loan was cancelled (since the proceeds of this loan were to be used to fund the EPC contract with Sinopec). The project was planned to include the construction of a polypropylene plant with the capacity of 500,000 per year. It was set to be complete by 2014. On September 3, 2016, China Development Bank (Xinjiang Branch) signed a $2 billion USD loan agreement with KPI for the construction of the Atyrau petrochemical project, as captured by linked Record ID#53553.

Staff comments

This project was funded through the $1.5 billion unrestricted portion of China Eximbank's Master Loan Facility with the Development Bank of Kazakhstan JSC, as captured by Record ID#53547 (see pg.66-67 of "Development Bank of Kazakhstan Base Prospectus 2017"). The complex was located in a special economic zone (SEZ) called the National Industrial Petrochemical Technopark Special Economic Zone, which was 33 km to the northeast of the city of Atyrau, and 8-9 km north to north of Karabatan (see "About the Project"). More detailed locational information can be found at http://www.wraconferences.com/wp-content/uploads/2016/12/10.10-Raushan-Samurzina-eng.pdf.