China Development Bank provides $85 million buyer’s credit loan for Melnykov Coal Mine Modernization Project (Linked to Project ID#42513)

On September 2, 2010, China Development Bank and the Government of Ukraine’s Ministry of Energy and the Coal Industry signed a $1.03 billion loan framework agreement (captured via Project ID#42513). The agreement was signed by Yuriy Yaschenko, the Ukrainian Minister of Energy and the Coal Industry and Chen Yuan, the Chairman of CDB. It identified seven investment projects that the CDB would consider supporting via subsidiary loans under the framework agreement. Then, on December 21, 2011, China Development Bank and OJSC Lysychanskvuhillya (also known as ВАТ "Лисичанськвугілля" or товариство "Лисичанськвугілля”) — a state-owned Ukrainian coal company — signed an $85 million subsidiary buyer’s credit loan agreement [№15010-02/191]. The borrowing terms of the loan were as follows: a 9-year maturity, 3 year grace period, and an annual interest rate of 7.05%. The loan’s final maturity date is December 21, 2020. On December 26, 2011, the Government of Ukraine’s Ministry of Finance issued a sovereign guarantee in support of this loan. The borrower was expected to use the loan proceeds to finance a commercial contract (№ 06-214 / 2) that it signed with Tian Di Science & Technology Co., Ltd (Ukrainian: "Тіанди" Сайнес енд Технолоджи Ко., Лтд”) on March 7, 2012. The CDB loan's amount outstanding was $46.24 million as December 31, 2017 and $20.4 million as of January 1, 2020. The purpose of the project was to re-equip and modernize the Melnikov (Melnykov) Coal Mine (Ukrainian: Шахта ім. Мельникова) in the city of Lysychansk within Luhansk Region. OJSC Lysychanskvuhillya received and tested the equipment that it acquired from Tian Di Science & Technology Co., Ltd on October 20, 2012. The project was completed in September 2013.

Additional details

1. This project is also known as the Melnikov Coal Mine Modernization Project. The Ukrainian project title is проекту щодо технічного переоснащення та модернізації ВП «Шахти ім. Д.Ф. Мельникова». The Chinese project title is 乌克兰梅利尼科瓦煤矿现代化技术改造项目 or 款的乌克兰梅利尼科娃煤矿改造项目 or 梅利尼科娃煤矿改造项目. 2. This CDB loan is not included in the Overseas Development Finance Dataset published by Boston University’s Global Development Policy Center in December 2020.

Number of official sources

24

Number of total sources

34