China Eximbank provides $280.86 million preferential buyer’s credit for Creation of National Satellite Communications and Broadcasting System Project

Project narrative

On December 19, 2012, China Eximbank and the Government of Belarus signed a $280,867,500 preferential buyer’s credit (PBC) agreement [CHINA EXIMBANK No. РBC (2012) 55 (243)] for the Creation of a National Satellite Communications and Broadcasting System Project. Then, on January 24, 2013, the Government of Belarus’ Council of Ministers approved the PBC. The maturity length of the PBC is 15 years. Its interest rate and grace period are unknown. Open Joint Stock Company "Savings Bank" Belarusbank (or JSC JSSB Belarusbank) is the agent bank responsible for servicing the loan. The proceeds of the PBC were to be used by the borrower to partially finance a commercial contract with China Great Wall Industry Corporation, which was signed on August 5, 2012. The project involved the production and launching of a satellite as well as the construction of a ground control center (GCC) in the Minsk region (located 40 kilometers from the city of Minsk). Its ultimate goal was to improve radio and television broadcasting and improve internet service in Belarus and its neighboring regions. It was agreed that the satellite would be jointly operated by Belarus and China during the first six months after its launch. However, Belarus would have exclusive control of the satellite thereafter. China Great Wall Industry Corporation was the general EPC contractor responsible for implementation. It was supported by three Chinese subcontractors: China Academy of Launch Vehicle Technology (CALT), China Academy of Space Technology (CAST), and China Satellite Launch and Tracking Control General (CLTC). The project was officially launched on or around January 30, 2013. However, satellite production did not begin until July 2013. Technical specialists from Belarus were trained in China from November 2014 to July 2015. Then, on January 15, 2016, the BELINTERSAT-1 satellite was launched from the Xichan cosmodrome — in the southern part of central China — into an orbital position of 51.5 ° E., providing a full range of advanced satellite services in Europe, Africa and Asia, as well as global coverage in the Eastern Hemisphere. It was delivered in orbit to Belarus on May 12, 2016. The GCC was delivered to the project owner in April 2016. The satellite was developed by the China Academy of Space Technology based on the DFH-4 satellite platform. Carrying 38 transponders, the satellite has a designed life span of 15 years. The commercial operations of the satellite began in June 2016. However, problems arose during the commercial operations of the satellite and the Government of Belarus fell into arrears on its loan repayments. In 2019, the Government of Belarus had only repaid $51.6 million and it asked China Eximbank to write-off (forgive) $232.7 million of outstanding loan principal (and interest). China Eximbank denied its request. The Prime Minister of Belarus said at the time that 'further payments from the funds of the project cannot be made' ('дальнейшие выплаты за счет средств от реализации проекта осуществляться не могут').