Narrative
Full Description
Project narrative
On June 14, 2011, China Eximbank and the Government of Belarus signed a $63,974,952.50 buyer’s credit loan agreement [CHINA EXIMBANK No. BLA201115] for Phase 1 (Zhlobin-Osipovichi Section) of the Railway Electrification Project. The borrowing terms of this loan, which was funded through a $5.7 billion framework agreement (captured in Record ID#42199), are unknown. The Government of Belarus on-lent the proceeds of the loan to Belarusian Railway and issued a sovereign guarantee in support of the loan. The proceeds of the loan were used by the borrower to finance approximately 85% of the cost of a commercial contract [№ 2784] that Belarusian Railway signed with China National Electric Import & Export Corporation (CUEC) on August 25, 2010. The purpose of the project was to electrify a 107 km railway segment from Zhlobin to Osipovichi. Upon completion, it was envisaged that this project would reduce the cost of transportation by 26% and reduce the consumption of fuel and energy resources by 15%. CUEC was the EPC contractor responsible or implementation. The project officially commenced on June 2, 2011. Then, on September 27, 2012, a presidential decree ordered the construction of the project during the remainder of 2012 and 2013. A project completion ceremony was held on September 28, 2013.
Staff comments
1. This project is also known as the First Stage of the Electrification of Gomel-Zhlobin-Osipovichi and Zhlobin-Kalinkovichi Project, the First Stage of the Electric Locomotive and Railway Electrification Project, and the Zhlobin-Osipovichi Section of the Gomel-Zhlobin-Osipovichi and Zhlobin-Kalinkovichi Railway Electrification Project. The Russian project title is проекта «Электрификация участков железной дороги Гомель – Жлобин – Осиповичи и Жлобин – Калинковичи. Первая очередь. Участок Жлобин – Осиповичи» or Электрификация участка Гомель-Жлобин-Осиповичи. The Chinese project title is 奥西波维奇-日洛宾铁路电气化改造项目 or “奥西波维奇－日洛宾”段铁路电气化改造项目. 2. The Government of Belarus’ sovereign bond prospectus states that the Chinese Government has lent it $64 million for railroad activities. This amount is almost exactly equivalent to the face value of this China Eximbank loan. 3. China Eximbank also financed Phase 2 (see Record ID#66727), Phase 3 (see Record ID#66977), Phase 4 (see Record ID#46387) of the Railway Electrification Project.