China Eximbank pledges $827.6 million loan for 315MW Egiin Gol Hydropower Project (Linked to Record ID#49148)

Project narrative

In 2015, the Government of Mongolia was reportedly in negotiations with China Eximbank about a potential $827.6 million subsidiary loan for the 315MW Egiin Gol Hydropower Project under a $1 billion general loan agreement (captured in Record ID#49148) that it signed with China Eximbank on November 10, 2015. The purpose of the project was to construct a 330MW hydroelectric power generation facility near the confluence of the Egiin river and the Selenge River. The area within the projected reservoir inundation zone consists mainly of natural pastureland (used sparsely by nomadic locals) with small areas of forest and cropland. The geographical coordinates of the reservoir area are north latitude from 49°24’23” to 49°39’51” and east longitude from 103°38’15” to 103°06’13”. However, it was later revealed that China’s National Development and Reform Commission objected to the financing of the project due to concerns about transboundary impacts of the dam. China Eximbank also received a letter from the people of Russia’s Kabansk District in the Selenge River Delta, warning that the project could harm Lake Baikal, which is the source of cold winter air in China. A subsidiary loan agreement with China Eximbank for the 330MW Egiin Gol Hydropower Project was never finalized. The Government of Mongolia used the $1 billion general loan agreement to support other projects. Under the terms of the general loan agreement, all subsidiary (individual) loan agreements for specific projects were to carry identical borrowing terms: 20 year maturity, 7 year grace period, 2% interest rate, 0% management fee, and 0.25% commitment fee.