China Eximbank provides EUR 65.7 million loan for Phase 3 (Zhlobin-Kalinkovichi Section) of Railway Electrification Project (Linked to Project ID#66722, ID#66727, and ID#46387)

On April 25, 2019, China Eximbank and Belarusian Railway signed an EUR 65.7 million loan agreement for Phase 3 (Zhlobin-Kalinkovichi Section) of the Railway Electrification Project. The borrowing terms of the loan are unknown. However, it is known that the borrower pledged the cash balance in an escrow account as a formal security interest (through an account pledge agreement). Belarusbank served as the guarantor for the loan. The proceeds of the loan are to be used by the borrower to finance 85% of the cost of an EUR 77.3 million commercial contract between Belarusian Railway and China National Electric Import & Export Corporation (CUEC). The purpose of the project was to electrify a 141 km railway segment from Zhlobin to Kalinkovichi (also known as (also known as Žlobin to Kalinkavičy or Zhlobin to Kalinkovichi). China National Electric Import & Export Corporation (CUEC) was the EPC contractor responsible for implementation. Construction began in 2018 and the project was originally expected to reach completion by November 2020. However, this project has encountered implementation delays. It is now scheduled for completion in 2022.

Additional details

1. This project is also known as Third Stage of the Electrification of Gomel-Zhlobin-Osipovichi and Zhlobin-Kalinkovichi Project, the Third Stage of the Electric Locomotive and Railway Electrification Project, and the Electrification of the Zhlobin-Kalinkovichi Section Project. The Russian project title is Электрификация участка Жлобин-Калинковичи or проекта «Электрификация участков Гомель—Жлобин—Осиповичи и Жлобин—Калинковичи 3-я очередь. Участок Жлобин—Калинковичи». The Chinese project title is 日洛宾到卡琳科维奇四段铁路电气化改造项目. 2. This China Eximbank loan is not included in the China’s Overseas Development Finance Dataset that Boston University's Global Development Policy Center published in December 2020. 3. China Eximbank also financed Phase 1 (see Project ID#66722), Phase 2 (see Project ID#66727), and Phase 4 (see Project ID#46387). 4. Arzinger Law Offices advised Belarusian Railway regarding the loan and account pledge agreements with the Export-Import Bank of China. See https://ceelegalmatters.com/Magazines/ISSUE_CEELM_8.4_free.pdf

Number of official sources

11

Number of total sources

21