Overview

CNTIC pledges $50 million loan to Ukrainian Danube Shipping Company for modernization of 21 tugboats and construction of 40 barges

Commitments (Constant USD, 2023)$53,206,319

Commitment Year•2017Country of Activity•UkraineDirect Recipient Country of Incorporation•UkraineSector•Transport And StorageFlow Type•Loan

Status

Project lifecycle

Pipeline: Pledge

Pipeline: PledgePipeline: CommitmentImplementationCompletion

Timeline

Key dates

Commitment date: Jan 1, 2017

First repayment: Jul 2, 2019

Last repayment: Dec 29, 2031

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 companies

China National Corporation for Technical Import and Export

Receiving agencies

State-owned companies

Ukrainian Danube Shipping Company

Loan desecription

CNTIC pledges $50 million loan to Ukrainian Danube Shipping Company for modernization of 21 tugboats and construction of 40 barges

Grace period•2.5 yearsGrant element•39.9771%Interest rate (t₀)•2.5%Interest type•Fixed Interest RateMaturity•15 years

Narrative

Full Description

Project narrative

In June 2017, China National Technical Import and Export Corporation (CNTIC), a state-owned company, signed a memorandum of understanding (MoU) with Ukrainian Danube Shipping Company, regarding a possible $50 million loan in order to modernize 21 tugboats and construct 40 SLG barges. The loan would cary an interest rate of 2.5%, a maturity period of 15 years and a grace period of 2.5 years. Ukrainian Danube Shipping Company was also planning to receive assistance from the Austrian company Panta Rei for this project.

Staff comments

As of June 2017, the Ukrainian Danube Shipping Company’s fleet consisted of 466 ships (tugboats and barges), most of which were obsolete.