Chinese Government provides RMB 365.2 million grant — via ETCAs — for Zamyn-Uud and Gashuun Sukhait Port Infrastructure Project

Project narrative

On February 2, 2018, the Chinese and Mongolian governments signed an agreement to conduct a feasibility study for a Zamyn-Uud and Gashuun Sukhait Port Infrastructure Project. Then, the two governments signed letters of exchange on November 30, 2018. Approximately 6 months later, on June 4, 2019, China’s Ministry of Commerce (MOFCOM) and the Government of Mongolia signed a project implementation agreement. The cost of the Zamyn-Uud port infrastructure component is RMB 201 million. The cost of the Gashuun Sukhait port infrastructure component is RMB 148 million. The Chinese Ministry of Commerce provided an RMB 365.22 million grant in order to finance 100% of the total project cost. The grant proceeds were drawn from two Economic and Technical Cooperation Agreements (ETCAs) that were signed by the Chinese Government and the Government of Mongolia on August 24, 2011 and May 12, 2017. The purpose of the Zamyn-Uud and Gashuun Sukhait Port Infrastructure Project is to improve the border infrastructure at Mongolia’s two largest railway and road ports: the Zamyn-Uud port and the Gashuun Sukhait port. More specifically, this project involves the construction of border inspection buildings, staff dormitories, and heating, electricity, water supply, and road infrastructure near the Zamyn-Uud port and the Gashuun Sukhait port. It also involves the installation of customs inspection equipment. Upon completion, these ports are expected to be able to accommodate a 4-fold increase in passengers, a 3-fold increase in freight volume, and a 7-fold increase in passenger vehicles. The Government of Mongolia and MOFCOM signed a project implementation agreement on June 4, 2019. Then, on August 2, 2019, MOFCOM announced that Jiangxi Zhongmei Engineering Group Ltd. (江西中煤建设集团有限公司) won the bid to implement this project. A groundbreaking ceremony took place at the Zamyn-Uud port on September 12, 2019 and construction began at the Gashuun Sukhait port on October 15, 2019. The project was originally scheduled or completion in the last quarter of 2021. However, due to the COVID-19 pandemic, the project has encountered implementation delays. As of August 2021, the project had achieved a 41% completion rate and it was on track to reach completion in 2022. The Zamyn-Uud port was put into operation and officially inaugurated on March 24, 2024.