China Eximbank provides $30.3 million preferential buyer’s credit for Yarmag New Bridge Construction and Old Bridge Renovation Project (Linked to Project ID#40435)

On November 10, 2015, China Eximbank and the Government of Mongolia signed a $30,260,333 preferential buyer’s credit (PBC) agreement [CHINA EXIMBANK PBC 2015 (25) TOTAL (368)] for the Yarmag New Bridge Construction and Old Bridge Reconstruction Project. The PBC was approved pursuant to a general loan agreement (captured via Project ID#40435) for the utilization of a $500 million preferential buyer’s credit for various projects that was signed by the two governments on June 16, 2011. The borrowing terms of the PBC (loan) were as follows: a 20 year maturity, a 7 year grace period, a 2% interest rate, and a 0% default (penalty) interest rate. The borrower was responsible for making 26 equal, semi-annual repayments (worth $1,163,846.15) after the expiration of the loan’s grace period. The proceeds of the PBC were to be used by the borrower to finance 100% of the $30,260,333 cost of a commercial (EPC) contract [UBI-2012-04/06] between China Railway 20th Bureau Group Co. Ltd. (China Railway 20 Bureau Group Corporation) and the Capital City Road Department of Mongolia, which was signed on February 1, 2013. The purpose of the project was to construct a 4,312.2-meter Yarmag overpass (interchange) in Khan-Uul District and a two-way, four-lane, 20.9 km road (between between the Nalaikh and Choir intersections), which is the main route to Chinggis Khaan International Airport and the development zone from downtown Ulaanbaatar. The interchange connects Chinggis Avenue and Naadamchdiin Street. The project also involved renovating Yarmag Bridge and building a new bridge in Khan-Uul District. China Railway 20th Bureau Group Co. Ltd. was the general EPC contractor responsible for implementation. SRP Engineer Consulting Mongolia LLC was also involved as a subcontractor. On April 3, 2017, a groundbreaking ceremony was held. The interchange was completed and officially opened to traffic on November 2, 2018. The originally anticipated project implementation start and end dates were October 1, 2016 and January 31, 2019.

Additional details

1. This project is also known as the Ulaanbaatar Yarmag New Bridge and Existing Bridge Rehabilitation Project. The Chinese project title is 雅尔玛格立交桥项目. The Mongolian project title is Яармагийн шинэ гүүр барих, хуучин гүүр засварлах төсөл or ЯАРМАГИЙН ШИНЭ ГҮҮР БАРИХ, ХУУЧИН ГҮҮРИЙГ ЗАСВАРЛАХ. 2. The China Eximbank loan that supported this project is not included in the Overseas Development Finance Dataset that Boston University’s Global Development Policy Center published in December 2020. 3. The PBC (loan) agreement can be accessed in its entirety via https://www.dropbox.com/s/rmtwfmzvcfs4iff/Mongolia%202015%20China%20Eximbank%20Loan%20Agreement%20for%20Yarmag%20New%20Bridge%20Construction%20and%20Old%20Bridge%20Reconstruction%20Project.pdf?dl=0.

Number of official sources

17

Number of total sources

23