China Eximbank provides $200 million preferential buyer’s credit for Section 1 of Bishkek–Naryn–Torugart Road Rehabilitation Project (9km-272km)

On October 15, 2009, China Eximbank and the Government of the Kyrgyz Republic signed a preferential buyer’s credit (PBC) agreement [China Eximbank PBC NO. (2009) 25 TOTAL NO. (87)] worth $199,999,703 for the Section 1 of Bishkek–Naryn–Torugart Road Rehabilitation Project (from kilometer 9 to kilometer 272). The PBC loan carried the following borrowing terms: a 20 year maturity, a 2% interest rate, and a 5 year grace period. According to the Government of the Kyrgyz Republic’s Aid Management Platform (AMP), the first loan disbursement (of $189,999,717.85) took place on July 1, 2013 and the second and final loan disbursement (of $10,000,000) took place on December 31, 2014. The same source notes that, as of 2014, had achieved a 100% disbursement rate ($199,999,717.85 out of $199,999,703). According to internal data that the Kyrgyz Ministry of Finance shared with AidData in July 2022, this loan achieved a disbursement rate of 10% as of December 31, 2021 and its amount outstanding was $114,486,759.69 as of December 31, 2021. This project sought to upgrade rehabilitate a 223 km stretch along the Bishkek–Naryn–Torugart Road between kilometer 9 to kilometer 272 (9km-272km). The Bishkek-Naryn-Torugart road is one of the main transport routes within Kyrgyzstan and comprises part of "Europe-East Asia" CAREC Transport Corridor. China Road and Bridge Corporation was the contractor responsible for project implementation. A “notice to commence” was issued to the contractor on May 1, 2010. Section 1 (from kilometer 9 to km 103) was completed on December 31, 2012. However, there are some indications that the preferential buyer's credit for the Section 1 of Bishkek–Naryn–Torugart Road Rehabilitation Project (9km-272km) financially underperformed vis-a-vis the original expectations of the lender. On or around July 1, 2021, China Eximbank and the Government of the Kyrgyz Republic signed a debt suspension agreement [No. DSSI2021PHASE2-029]. Under the terms of the agreement (captured via Project ID#96102), the lender agreed to suspend principal and interest payments due between July 1, 2021 and December 31, 2021 under the preferential buyer's credit agreement for the Section 1 of Bishkek–Naryn–Torugart Road Rehabilitation Project (9km-272km).

Additional details

1. The Russian project title is проекту реабилитации дороги Бишкек-Нарын-Торугарт (участок с 9 по 272 км, протяженностью 223 км). 2. The project identification number in the Government of the Kyrgyz Republic’s Aid Management Platform (AMP) is 871881777. 3. The debt suspension agreement [No. DSSI2021PHASE2-028] can be accessed in its entirety via https://www.dropbox.com/s/huwa695j3w9hwig/DSSI%20Agreement%20for%20Kyrgyz%20Republic.pdf?dl=0. 4. A detailed loan repayment reschedule (that the Kyrgyz Ministry of Finance shared with AidData in July 2022) can be accessed via https://www.dropbox.com/s/xg0cmomv0qk7cbj/Repayments.xlsx?dl=0. The schedule reflects actual repayments through December 31, 2021 and planned/scheduled repayments after December 31, 2021. Note also that (a) China Eximbank granted the Government of Kyrgyz Republic a a deferral of payments for the period from August 2021 to December 2021, and (b) the deferred principal and interest amounts are included in the main body of the debt and the repayment amounts of the deferrals (with additional accrued interest for granting a deferment) are already included in the repayment schedule.

Number of official sources

21

Number of total sources

28