China Eximbank provides $142.46 million buyer's credit loan for Krasnoselskstroymaterialy Cement Plant Construction Project (Linked to Record ID#66650, ID#43265, ID#42171, and Record ID#66652)

Project narrative

On November 5, 2007, China Eximbank created a $500 million line of credit for the Government of Belarus to fund the construction of three all-dry cement plants (captured in Umbrella Record ID#42171). Then, on March 6, 2009, China Eximbank and the Government Belarus signed a $142.46 million buyer’s credit loan agreement (China Eximbank loan ID# BLA0901 and Government of Belarus loan ID# 12-2-15/10П) for the Krasnoselsk Cement Plant Construction Project. This loan carried a 6.6% interest rate, 10 year maturity, and 3 year grace period. The Government of Belarus issued a sovereign guarantee in support of this loan. The proceeds of the loan were on-lent from the Government of Belarus to a state-owned company called Krasnoselsk JSC (also known OJSC Krasnoselskstroimaterialy or ОАО «Красносельск-стройматериалы» or ОАО Красносельскстройматериалы), which in turn used the loan proceeds to finance a commercial contract [No. CITICICC-1204А-BL] that it signed with CITIC Construction on December 31, 2007. The purpose of this project was to help Krasnoselsk JSC establish a (all-dry) production line — in town of Krasnoselsky within Volkovysk district and Grodno region — with a daily production capacity of 5,000 tons of cement. CITIC Construction was the EPC contractor responsible for implementation. Construction began on July 1, 2009. Then, on November 17, 2011, the Deputy Prime Minister of the Republic of Belarus, inspected the cement plant. The new production line officially completed and put into production on April 30, 2012. This project passed a performance audit and it was officially handed over to the owner of the cement plant on May 26, 2013.