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Overview

Chinese Government provides RMB 20 million interest-free loan for Ashgabat Silk Factory Reconstruction Project (Linked to Record ID#73037)

Commitments (Constant USD, 2023)$5,578,301
Commitment Year•2002Country of Activity•TurkmenistanDirect Recipient Country of Incorporation•TurkmenistanSector•Industry, Mining, ConstructionFlow Type•Loan

Status

Project lifecycle

Completion

Pipeline: PledgePipeline: CommitmentImplementationCompletion

Timeline

Key dates

Commitment date
Jan 1, 2002
Start (actual)
Feb 1, 2003
End (actual)
Jan 24, 2004
First repayment (originally scheduled)
Dec 30, 2011
Last repayment (originally scheduled)
Dec 27, 2021

Geospatial footprint

Map overview

Visualizes the AidData-provided feature geometry for this project.

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This project involved the reconstruction of a silk factory in the city of Ashgabat. More detailed locational information can be found at https://www.openstreetmap.org/way/422575028

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

Government Agencies

  • China Ministry of Commerce

Receiving agencies

Government Agencies

  • Government of Turkmenistan

Implementing agencies

Private Sector

  • Shanxi Zhongxu International Trade Industrial Co., Ltd.

Loan desecription

Chinese Government provides RMB 20 million interest-free loan for Ashgabat Silk Factory Reconstruction Project

Grace period•10 yearsGrant element•75.0516%Interest rate (t₀)•0%Interest type•Fixed Interest RateMaturity•20 years

Narrative

Full Description

Project narrative

In 2002, the Chinese and Turkmen governments signed an exchange of letters for the Ashgabat Silk Factory Reconstruction Project. China’s Ministry of Commerce provided an RMB 20 million interest-free loan with a 20-year maturity and 10-year grace period (captured in Record ID#69312) as well as an RMB 15 million grant (see Record ID#73037) to support the implementation of this project. The purpose of the $3.8 million USD project was to reconstruct a silk production complex (silk factory) in Ashgabat (also known as the Ashkhabad Filature). The factory, built during the Soviet era, featured outdated technology, an incomplete production, and a low production level before the implementation of this project. Shanxi Zhongxu International Trade Industrial Co., Ltd. (山西中旭国际贸易实业公) was the contractor responsible for project implementation. The project commenced in February 2003 and a project completion ceremony took place on February 12, 2004.

Staff comments

1. Since loan terms for the interest-free loan are unavailable, AidData has set maturity period to 20 years by default and grace period to 10 years by default per China's Foreign Assistance White Paper (http://www.cidca.gov.cn/2018-08/06/c_129925064_3.htm) which states that the maturity period of interest-free loans is 20 years, with a drawdown period of 5 years, grace period of 5 years, and repayment over 10 years. AidData treats the drawdown period as providing 5 years of additional grace. 2. This project is also known as the Silk Production Complex Reconstruction Project. The Chinese project title is 中国援土阿什哈巴德缫丝厂 or 阿什哈巴德缫丝厂. The Russian project title is стали реконструкция и техническое перевооружение Ашхабадской шелкомотальной фабрики or реконструкцию Ашхабадской шелковой фабрики.