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

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 Project #69312) as well as an RMB 15 million grant (see Project #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 The factory, built during the Soviet era, featured outdated technology, an incomplete production, and a low production level before the implementation of this project.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.

Additional details

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. 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. Some sources suggest that the face value of the loan was $1.8 million rather than RMB 20 million. This issue merits further investigation.

Number of official sources

7

Number of total sources

16