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Overview

Chinese Government provides RMB 20 million interest-free loan for Mary Silkworm Factory Reconstruction Project (Linked to Record ID#73035)

Commitments (Constant USD, 2023)$5,611,888
Commitment Year•2001Country 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
Dec 22, 2001
End (actual)
May 5, 2003
First repayment (originally scheduled)
Dec 30, 2010
Last repayment (originally scheduled)
Dec 27, 2020

Geospatial footprint

Map overview

Visualizes the AidData-provided feature geometry for this project.

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The purpose of the project was to reconstruct a silkworm factory (breeding farm) in the city of Mary. More detailed locational information can be found at https://www.openstreetmap.org/way/669647462

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

State-owned companies

  • China Jiangsu International Economic and Technical Cooperation Company

Loan desecription

Chinese Government provides RMB 20 million interest-free loan for Mary Silkworm 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

On December 22, 2001, 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 (captured in Record ID#69430) and an RMB 10 million grant (see Record ID#73035) to support the implementation of this project. The purpose of the project was to reconstruct a silkworm factory (breeding farm) in the city of Mary. Prior to the implementation of the project, the silkworm factory (breeding farm) featured outdated technology, an incomplete production process, and a low production level from the Soviet era. China Jiangsu International Economic And Technical Cooperation Group, Ltd. was the contractor responsible for implementation. The project was officially completed and handed over to the local authorities on May 5, 2003 and the factory was put into use in October 2003.

Staff comments

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. The Russian project title is стали реконструкция и техническое перевооружение Марыйского грензавода. The Chinese project title is 中国援⼟马雷蚕种场改造项⽬ or 援⼟马雷蚕种场改造项⽬. Some sources suggest that the monetary value of the grant that supported this project was RMB 15 million rather than RMB 10 million. This issue merits further investigation.