China Eximbank provides RMB 2.54 billion government concessional loan for Phase 2 of the Agro-Industrial Complex Project (Linked to Project ID#66525 and #67382)

On February 11, 2018, the Export-Import Bank of China and Belagroprombank — a state-owned bank in Belarus — signed two loan agreements for Phase 1 of the Agro-Industrial Complex Project: an RMB 1.75 billion government concessional loan (GCL) agreement [CHINA EXIMBANK GCL No. (2017) 36 TOTAL NO. (641)] and a $50 million USD buyer’s credit loan (BCL) agreement. The GCL, which is captured via Project ID#66525, carries a 15-year maturity and an interest rate of 2%. The borrowing terms of the BCL, which is captured via Project ID#67382, are unknown. Then, on June 11, 2018, China Eximbank and Belagroprombank signed an RMB 2.54 billion government concessional loan (GCL) agreement [CHINA EXIMBANK GCL No. (2017) 37 TOTAL NO. (642)] for Phase 2 of the Agro-Industrial Complex Project. The second GCL, which is captured via Project ID#66526, carries a 15-year maturity and an interest rate of 2%. Belagroprombank on-lent the proceeds from the GCLs and the BCL to a special purpose vehicle (SPV) called CJSC Belarusian National Biotechnology Corporation (BNBC). The proceeds from the GCLs and the BCL were then to be used by the ultimate borrower, BNBC, to finance a three-year, $853.19 million (RMB 4.29 billion) commercial engineering, procurement, and construction (EPC) contract between CITIC Construction Co., Ltd. and BNBC, which was signed on November 26, 2016. This project involved the construction of a new amino acid plant, a high-tech balanced compound feed production plant, a grain silo project with drying facilities, a combined heat and power station, and supporting infrastructure (such as railways, highways, natural gas pipelines, and transmission lines) in Pukhovichi District within Minsk Oblast. Upon completion, the agro-industrial complex is expected to process 250,000 tons of grain (wheat/triticale) per year and produce 64,700 tons of lysine, 5,900 tons of L-threonine, 1,300 tons of L-tryptophan, 23,000 tons of gluten, 99,000 tons of lysine-containing feed, 15,000 tons of ammonium sulfate crystals, and 10,000 tons of liquid ammonium sulfate. The project was also expected meet the future needs of cattle breeders for ‘essential amino acids.’ Its products will be sold domestically and abroad. CITIC Construction Co., Ltd. is the EPC contractor responsible for implementation. Construction commenced on July 27, 2018 and was expected to last for 36 months. On March 26, 2019, a formal groundbreaking ceremony for the Belarusian agro-industrial complex project took place. By end of 2020, the project had achieved a 73% completion rate.

Additional details

1. This project is also known as Phase I of Hi-Tech Agro-Industrial Full Cycle Complex Project for 2016-2032, the First Stage of a High-Tech Agribusiness Project in Pukhovichi District, the First Stage of the Hi-Tech Agro-Industrial Full Cycle Complex Project for 2016-2032, and the Organization high-tech agro-industrial production of complete cycle for 2016 - 2032 (Stage 1) Project. The Russian project title is «Организация высокотехнологичного агропромышленного производства полного цикла на 2016 – 2032 годы» (I этап). The Chinese project title is 白俄罗斯全循环高科技农工综合体项目 or 高科技农工生产项目（二期] or 白俄罗斯全循环高科技农工综合体项目 or 2０1６－２０３２年全循环高科技农工综合体. 2. None of the China Eximbank loans that supported this project are included in the China’s Overseas Development Finance Dataset that Boston University's Global Development Policy Center published in December 2020. 3. Some sources claim that Bank of China rather than China Eximbank provided a $50 million USD loan for this project. This issue merits further investigation. 4. CJSC Belarusian National Biotechnology Corporation (BNBC) is a special purpose vehicle that is minority-owned by the Government of Belarus. It is a joint venture of the Government of Belarus (a 25% ownership stake), CITIC Construction Co., Ltd. (a 20% ownership stake), COFCO Corporation (a 9% ownership stake), Russian Viren-Invest (a1% ownership stake). Two Scottish companies (Maxforce LP and Altastar LP) and two companies from the United Arab Emirates (Al Salaam Biotech Investments Ltd and Al Ziad Agro Investments Ltd) collectively hold a 45% ownership stake in BNBC. The Russian name and abbreviation for CJSC Belarusian National Biotechnology Corporation (BNBC) is ЗАО «Белорусская национальная биотехнологическая корпорация» (ЗАО «БНБК»). BNBC's website can be found here: https://bnbc.by/. 5. The agro-industrial complex uses modern biotechnology to deeply process the grains of crops, produce irreplaceable amino acids (lysine, tryptophan, etc.), and further produce high-yield and high-tech balanced compound feed and biological activator. The complex consists of a lysine plant with an annual output of 50,000 tons, a tryptophan plant with an annual output of 5,000 tons, a high-tech balanced compound feed production plant with an annual output of 1 million tons, an oil crop processing plant with an annual output of 300,000 tons, 600,000-ton silos and grain depots with drying facilities, construction of a grain raw material production base with an annual output of 1 million tons, supporting infrastructure projects, and on-site pipe networks.

Number of official sources

13

Number of total sources

20