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Overview

China Eximbank provides RMB 200 million government concessional loan to Türkmengaz for supply of oil and gas equipment and pipe products

Commitments (Constant USD, 2023)$35,160,858
Commitment Year•2011Country of Activity•TurkmenistanDirect Recipient Country of Incorporation•TurkmenistanSector•Industry, Mining, ConstructionFlow Type•Loan

Status

Project lifecycle

Implementation

Pipeline: PledgePipeline: CommitmentImplementationCompletion

Timeline

Key dates

Commitment date
Nov 23, 2011
First repayment (originally scheduled)
Apr 16, 2018
Last repayment (originally scheduled)
Mar 21, 2032

Stakeholders

Organizations involved in projects and activities supported by financial and in-kind transfers from Chinese government and state-owned entities

Ultimate beneficial owners

At least 25% host country ownership

Funding agencies

State-owned Policy Banks

  • Export-Import Bank of China (China Eximbank)

Receiving agencies

State-owned Banks

  • State Bank for Foreign Economic Affairs of Turkmenistan (Turkmenvnesheconombank)

Implementing agencies

State-owned companies

  • Turkmengaz

Loan description

China Eximbank provides RMB 200 million government concessional loan to Türkmengaz for supply of oil and gas equipment and pipe products

Grace period•6.4 yearsGrant element•48.3354%Interest rate (t₀)•3%Interest type•Fixed Interest RateMaturity•20.34 years

Narrative

Full Description

Project narrative

On November 23, 2011, China Eximbank and the State Bank for Foreign Economic Affairs of Turkmenistan signed an RMB 200 million government concessional loan (GCL) agreement for the Oil, Gas, and Pipeline Equipment Acquisition Project (Правительственное льготное кредитное соглашение по проекту закупки нефтяного и газового оборудования между Государственным банком внешнеэкономической деятельности Туркменистана и Экспортно-импортным банком Китая). The borrowing terms of the loan included a 3% interest rate and a 20.34-year maturity, but its grace period is unknown. It is known that Türkmengaz — the national gas company of Turkmenistan — intended to use to the loan proceeds to purchase oil, gas, and pipeline equipment for its operations. According to a 2012 annual report published by the State Bank for Foreign Economic Affairs of Turkmenistan, this project entered implementation. However, its precise implementation start date is unknown.

Staff comments

1. The Russian project title is проекту закупки нефтяного и газового оборудования. 2. Data on amounts outstanding can be accessed via https://tfeb.gov.tm/web/upload/global/2110%20SBFEA_2019_%28eng%29_signed%20%281%29.pdf and https://tfeb.gov.tm/web/upload/global/en%202012.pdf and https://tfeb.gov.tm/web/upload/global/TVEB_eng_2013_final.pdf and https://www.tfeb.gov.tm/page/41 3. According to the World Bank's Debtor Reporting System (DRS), the weighted average grace period of all official sector lending from all Chinese creditors to government and government-guaranteed borrowing institutions in Turkmenistan was 6.4 years in 2011. AidData estimates the grace period of the China Eximbank loan by using this figure. See https://www.dropbox.com/scl/fi/k9rnqdib5fdz2vv9fjc4k/August-2024-IDS-Download-Turkmenistan-s-Borrowings-and-Borrowing-Terms-from-Official-Sector-PRC-Creditors.xlsx?rlkey=l952qne9jm8bstvvf6ub9ybiq&dl=0