Project ID: 53576

CDB provides $607 million buyer's credit loan for Phase II of Shymkent Oil Refinery Reconstruction and Modernization Project (Linked to Project ID#72399)

Commitment amount

$ 699469261.3117311

Adjusted commitment amount

$ 699469261.31

Constant 2021 USD


Funding agency [Type]

China Development Bank (CDB) [State-owned Policy Bank]




Industry, mining, construction (Code: 320)

Flow type


Level of public liability

Other public sector debt





Mixed (The next section lists the possible statuses.)





Financial Flow Classification

OOF-like (The next section lists the possible statuses.)

Official Development Assistance

Other Official Flows

Vague (Official Finance)

Flows categorized based on OECD-DAC guidelines

Project lifecycle


Completion (The next section lists the possible statuses.)










Actual complete



On June 9, 2017, China Development Bank (CDB) signed a $607 million buyer's credit (facility) loan agreement with the Development Bank of Kazakhstan JSC (DBK) for Phase 2 of the Reconstruction and Modernization of the Shymkent Oil Refinery. DBK then used the proceeds from the CDB loan to on-lend to a project company (special purpose vehicle) called PetroKazakhstan Oil Products LLP (PKOP). The CDB loan facility had a maturity date of April 25, 2030 and carried an interest of rate of 2.7% per annum plus LIBOR. In September 2017 and December 2017, DBK drew down two tranches of $100 million each. Then, in June 2018, DBK drew down a further $65 million, and in May 2020, DBK drew down a further $130 million tranche under the facility agreement. The aggregate principal amount outstanding under the facility agreement was $0 as of June 30, 2017, $386 million as of December 31, 2020, and $368.1 million as of December 31, 2021 PKOP also contributed some of its own funds to support the implementation of the project. Additionally, a Sinosure-backed bank syndicate of Calyon, Sumitomo Mitsui Banking Corporation, Bank of Tokyo-Mitsubishi UFJ, and Deutsche Bank provided additional financing to support the project. The syndicate provided $225 million USD to DBK for on-lending, while Sinosure provided export buyer’s credit insurance. The Export-Import Bank of China pledged $1 billion for the first phase of the modernization of the refinery as captured by linked project ID#72399. The project sought to increase annual production from 5.25 million to 6 million tons and improve refining levels. After the modernization (including Phase I, the plant was to be more environmentally friendly and able to produce Euro-4 and Euro-5 products. The project also included the construction of a complex of catalytic cracking units with a capacity of 2 million tons a year, an alkali treatment unit, a amine recovery unit, a sour water stripper, a pressure swing absorption unit, a unsaturated LPG desulfurization unit, a saturated LPG desulfurization unit, a sulfur production unit, and a revamping of the CDU of LK-6U complex. China Petroleum Engineering and Construction Corporation (CPEEC) was the general contractor responsible for project implementation. Phase II was completed on August 15, 2018.

Additional details

1. The shareholders of PetroKazakhstan Oil Products LLP are CNPC Exploration and Development Company Ltd. (50%) and JSC Exploration & Production KazMunayGas (50%). CNPC Exploration and Development Company Ltd. is a subsidiary of PetroChina Company Ltd. and a 50/50 joint venture between PetroChina and CNODC. JSC Exploration & Production KazMunaiGas (EP KMG) is engaged in the production of crude oil at the oil fields in western and southern Kazakhstan, and it is a subsidiary of JSC National Company KazMunayGas. 2. The LIBOR rate was not specified, so the 6-month LIBOR is assumed. In June 2017 the average 6-month LIBOR rate was 1.432%. Therefore, AidData has coded the "all-in" interest rate as 1.432% + 2.7%, or 4.132%. 3. This project is also known as the PKOP LLP Project. The Chinese project title is 哈萨克斯坦奇姆肯特炼厂二期. 4. PKOP is a joint venture between KazMunaiGaz and CNPC, which was created in 2005. 5. The 2020 DBK Annual Report suggests that the maturity length of the loan is 10 years and the interest rate is 2.91%. This issue warrants further investigation.

Number of official sources


Number of total sources


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Cofinancing agencies [Type]

MUFG Bank, Ltd. (Formerly Bank of Tokyo-Mitsubishi UFJ, Ltd. (BTMU)) [Private Sector]

Deutsche Bank [Private Sector]

Calyon [Private Sector]

Sumitomo Mitsui Banking Corporation Group (SMBC Group) [Private Sector]

Direct receiving agencies [Type]

Development Bank of Kazakhstan JSC (DBK) [State-owned Bank]

Indirect receiving agencies [Type]

PetroKazakhstan Oil Products LLP (PKOP) [Joint Venture/Special Purpose Vehicle]

Implementing agencies [Type]

China Petroleum Engineering & Construction Corporation (CPECC) [State-owned Company]

Insurance provider [Type]

China Export & Credit Insurance Corporation (Sinosure) [State-owned Company]

Loan Details


13 years

Interest rate


Grant element (OECD Grant-Equiv)


Bilateral loan

Export buyer's credit

Inter-bank loan

Investment project loan