China Eximbank provides $340 million buyer’s credit loan for 86.54 km Gomel-Zhlobin Section of the M5/E271 Minsk-Gomel Highway Upgrading and Reconstruction Project (Linked to Project ID#46413)

On June 14, 2011, China Eximbank and the Government of Belarus signed a $340 million buyer’s credit loan agreement [CHINA EXIMBANK No. BLA201105] for the 86.54 km Gomel-Zhlobin Section of the M5/E271 Minsk-Gomel Highway Upgrading and Reconstruction Project. The estimated interest rate of this loan is 4.9255%. Its maturity and grace period are unknown. The Government of Belarus issued a sovereign guarantee in support of the loan. The proceeds of the loan were on-lent to a state-owned company called RUE Gomelavtodor (РУП «Гомельавтодор»). RUE Gomelavtodor then used the loan proceeds to partially finance a commercial contract that it signed with China Road and Bridge Corporation (CRBC) on September 26, 2010. The purpose of the project was to upgrade and reconstruct an 86.54 km section of the M5/E271 Minsk-Gomel Highway that runs from Gomel to Zhlobin. The M5/E271 Highway, located in Southeast Belarus, is a vital communication line connecting Minsk, the capital of Belarus, and Gomel, the second largest city in Belarus. CRBC was the EPC contractor responsible for implementation The project was officially launched on January 4, 2013 and it was completed on December 24, 2014.

Additional details

1. This project is also known as the Zhlobin-Gomel Road Project. The Russian project title is Дорога Жлобин-Гомель or проекта «Реконструкция автомобильной дороги М-5/Е 271 Минск – Гомель на участке Жлобин – Гомель». The Chinese project title is M5公路日洛宾-戈梅利路段改造项目 or M5公路延长线项目. 2. The Government of Belarus’ sovereign bond prospectus states that the Chinese Government has lent it $662.1 million for road construction activities. This amount is almost exactly equivalent to the sum of the value of the two loans that China Eximbank issued in 2011 (captured in this Project ID#42336) and 2012 (captured in Project ID#46413) for the reconstruction and upgrading of two sections of the Minsk-Gomel highway M-5/E271 (the Gomel-Zhlobin Section and the Bobruisk-Zhlobin Section).

Number of official sources

14

Number of total sources

24