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Overview

China Eximbank provides RMB 400 million government concessional loan for Oil and Gas Equipment Acquisition Project

Commitments (Constant USD, 2023)$81,230,572
Commitment Year•2009Country of Activity•TurkmenistanDirect Recipient Country of Incorporation•TurkmenistanSector•EnergyFlow Type•Loan

Status

Project lifecycle

Pipeline: Commitment

Pipeline: PledgePipeline: CommitmentImplementationCompletion

Timeline

Key dates

Commitment date
Dec 14, 2009
First repayment (originally scheduled)
Jun 13, 2014
Last repayment (originally scheduled)
Dec 27, 2028

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

  • China Petroleum Technology & Development Corporation (CPTDC)
  • Turkmenneft

Loan description

China Eximbank provides RMB 400 million government concessional loan for Oil and Gas Equipment Acquisition Project

Grace period•4.5 yearsGrant element•45.5691%Interest rate (t₀)•3%Interest type•Fixed Interest RateMaturity•20 years

Narrative

Full Description

Project narrative

On December 14, 2009, China Eximbank and the State Bank for Foreign Economic Affairs of Turkmenistan signed an RMB 400 million government concessional loan (GCL) agreement for the Oil and Gas Equipment Acquisition Project. The borrowing terms of the loan included a 20 -year maturity and a 3% interest rate, but its grace period is unknown. The borrower was expected to use the proceeds of the GCL to finance a commercial contract between China Petroleum Technology & Development Corporation (CPTDC) and Turkmen state-owned oil company called Turkmeneft (or Türkmennebit or TurkmenOil). The purpose of this project was to facilitate the acquisition of oil and gas equipment by Turkmeneft from CPTDC. AidData has not yet identified any evidence that this project entered implementation.

Staff comments

1. 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 2. 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 4.5 years in 2009. 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