China Eximbank provides $76.4 million loan for Phase 4 (Molodechno-Gudogay Section) of Railway Electrification Project (Linked to Record ID#66722, ID#66977, and ID#66727).

Project narrative

On May 10, 2015, China Eximbank and Belarusian Railway — a state-owned railway company in Belarus — signed a $76,398,048 loan agreement for Phase 4 (Molodechno-Gudogay Section) of the Railway Electrification Project. The borrowing terms of the loan are unknown. The Ministry of Transport and Communications of Belarus issued a guarantee in support of the loan. The proceeds of the loan were used by the borrower to finance approximately 85% of the cost of a $89.9 million commercial contract [№ НОКС/Ю-794] that Belarusian Railway and China National Electric Import & Export Corporation (CUEC) signed on December 6, 2013. The purpose of the project was to electrify an 84 km railway segment from Molodechno to Gudogay and the Lithuanian border. Upon completion, it was envisaged that this project would reduce the train travel time from Minsk to Vilnius to two hours and thereby strengthen ties between Belarus and the European Union (via Lithuania). CUEC was the EPC contractor responsible for implementation. Construction began on September 24, 2015 and the project was completed on September 17, 2017.