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Overview

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

Commitments (Constant USD, 2023)$31,658,311
Commitment Year•2015Country of Activity•MongoliaDirect Recipient Country of Incorporation•MongoliaSector•Transport And StorageFlow Type•Loan

Status

Project lifecycle

Completion

Pipeline: PledgePipeline: CommitmentImplementationCompletion

Timeline

Key dates

Commitment date
Nov 10, 2015
Start (planned)
Oct 1, 2016
Start (actual)
Apr 3, 2017
End (planned)
Jan 31, 2019
End (actual)
Nov 2, 2018
First repayment (originally scheduled)
Nov 8, 2022
Last repayment (originally scheduled)
Nov 5, 2035

Geospatial footprint

Map overview

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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. More detailed locational information can be found at https://www.openstreetmap.org/directions?engine=fossgis_osrm_car&route=47.8579%2C106.7870%3B47.8862%2C106.8643#map=14/47.8395/106.7937 and https://www.openstreetmap.org/directions?engine=fossgis_osrm_car&route=47.8579%2C106.7870%3B47.8173%2C106.7587#map=13/47.8377/106.7749

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

State-owned Policy Banks

  • Export-Import Bank of China (China Eximbank)

Receiving agencies

Government Agencies

  • Government of Mongolia

Implementing agencies

Private Sector

  • SRP Engineer Consulting Mongolia LLC

State-owned companies

  • China Railway 20th Bureau Group Co. Ltd.

Loan description

China Eximbank provides $30.3 million preferential buyer’s credit for Yarmag New Bridge Construction and Old Bridge Renovation Project

Grace period•7 yearsGrant element•56.0077%Interest rate (t₀)•2%Interest type•Fixed Interest RateMaturity•20 years

Narrative

Full Description

Project narrative

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 Record 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.

Staff comments

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.