China Eximbank provides $195 million loan for Phase 1 of the Shine Yarmag Apartment Complex Construction Project

On March 16, 2012, the Development Bank of Mongolia — a state-owned development bank in Mongolia — and China Eximbank signed a $200 million general loan agreement for the Shine Yarmag Apartment Complex Construction Project. Then, in 2015, China Eximbank and the DBM signed a $195 million subsidiary term loan agreement for Phase 1 of the Shine Yarmag Apartment Complex Construction Project. The loan reportedly carries an interest rate of 4.2% and a maturity of 6-12 years. DBM subsequently on-lent the proceeds of the loan from China Eximbank to State Housing Corporation of Mongolia (a state-owned housing enterprise in Mongolia). The proceeds of the loan were to be used by the borrower to partially finance a $283 million commercial contract with CGGC Mongolia LLC, which was signed on October 29, 2010. The purpose of Phase 1 was to construct 20 blocks of apartments for 1,500 households in 8th khoroo of Khan-Uul district (6 km southwest of Ulaanbaatar’s downtown area). The larger Shine Yarmag Apartment Complex Construction Project (all phases) covers a total area of 21.6 hectares with a total construction area of 368,262 square meters. It consists of a fountain, a secondary school with the capacity to accommodate 2,000 children, a kindergarten with the capacity to accommodate 400 children, a vocational training and production center, a medical center, and shopping centers. 39.5% of the total project area consists of green areas, including children's playgrounds and sports fields. 30.6% of the total project area consists of bicycle paths, treadmills, roads and sidewalks. Anagram LLC and CGGC Mongolia LLC — a local subsidiary of China Gezhouba Group Company (CGGC) — are the contractors responsible for implementation. A formal construction commencement ceremony took place on August 26, 2011. However, construction itself did not begin until May 19, 2015. Then, on July 29, 2015, Chen Xiaohua, Vice President of CGGC and Chairman ＆ President of CGGC International, conducted an on-site project inspection. A 4-block building for 120 families with 6 floors, was commissioned during the 4th quarter of 2016. The first phase of the project was scheduled for completion in the fourth quarter of 2017. However, it is unclear if/when this project was completed.

Additional details

1. This project is also known as the New Fair Apartment Complex Construction Project, Phase I of the Yarmag New Town Project, the New Yarmag Housing Project, and the Yarmag House-Building Project. The Mongolian project title is "Шинэ Яармаг" цогцолбор хорооллын барилгын ажил or “Шинэ яармаг” төслийн I үе шат. The Chinese project tittle is 蒙古雅玛格新城项目一期 or 蒙古雅玛格新城房建项目. 2. 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. 3. Some sources suggests that the underlying commercial contract financed with the China Eximbank loan was with BCEG No. 6 Construction Engineering Co., Ltd. rather than Anagram LLC and CGGC Mongolia LLC (https://bjljgs.bcegc.com/menu462/newsDetail/2398.html and https://bjljgs.bcegc.com/menu471/projectDetail/494.html). This issue requires further investigation. 4. For the time being, AidData assumes a maturity length of 12 years. However, this issue requires further investigation.

Number of official sources

8

Number of total sources

21