China Eximbank provides RMB 200 million government concessional loan for Krichevtsementnoshifer Cement Plant Construction Project (Linked to Record ID#66650)

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 October 29, 2008, China Eximbank and the Government Belarus signed a $183,290,000 buyer’s credit loan agreement (China Eximbank loan ID# BLA0807 and Government of Belarus loan ID# 12-2-15/4П ) for the Krichevtsementnoshifer Cement Plant Construction Project. This loan carried the following terms: a 6.6% interest rate, 10 year maturity, and 3 year grace period. On October 29, 2008, China Eximbank and the Government Belarus also signed an RMB 200 million government concessional loan (GCL) agreement (China Eximbank loan ID# № GCL (2008) 025 (244) and Government of Belarus loan ID# 12-2-15/2П) for the Krichevtsementnoshifer Cement Plant Construction Project. The GCL carried the following terms: a 2.5% interest rate, 15 year maturity, and 3 year grace period. The Government of Belarus issued sovereign guarantee in support of the buyer’s credit loan and the government concessional loan. The proceeds of the buyer’s credit loan (captured in Record ID#66650) and government concessional loan (captured in Record ID#43265) were on-lent from the Government of Belarus to a state-owned company called OJSC Krichevcementnoshifer (also known as PRUE "Krichevcementnoshifer" or ОАО «Кричевцементношифер»), which in turn used the loan proceeds to finance a commercial contract [№ CITICICC-1203А-BL] that it signed with CITIC Construction on December 31, 2007. The purpose of this project was to help OJSC Krichevcementnoshifer establish a (all-dry) production line — in the town of Krichev within Krichev district and Mogilev region — with a daily production capacity of 5,000 tons of cement. CITIC Construction was the EPC contractor responsible for implementation. The new production line was officially completed and put into production on June 22, 2013. It was officially commissioned on August 16, 2013. OJSC Krichevcementnoshifer is one of the largest enterprises in Belarus for the production of building materials. It was founded in 1933, and renamed as PRUEK "Krichevcementnoshifer" in 2000.