China Eximbank provides $42.38 million preferential buyer’s credit for Ulaanbaatar Traffic Police Intersection Overpass Project (Linked to Record ID#49148)

Project narrative

On November 10, 2015, China Eximbank and the Government of Mongolia signed a $42,380,000 preferential buyer’s credit (PBC) agreement [CHINA EXIMBANK PBC 2015 (25) TOTAL (368)] for the Ulaanbaatar Traffic Police Intersection Overpass 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, a 0% management fee, a 0.25% commitment fee, and a 0% default (penalty) interest rate. The borrower was responsible for making 26 equal, semi-annual repayments (worth $1,630,000) 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 $42,380,000 cost of a commercial (EPC) contract [UBI-2012-05/06] 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 the construction of a 477-meter long, 16.5-meter wide, four-lane flyover (overpass) — between Olympic Street (Олимпийн гудамж) and Ikh Mongol Uls Street — in the city of Ulaanbaatar. The flyover passes over Narnii Zam (Sun Road) and the 406th railway. It is located near the Traffic Police Department. The project also involved the construction of three feeder-bridges that connect the main flyover with Narnii Zam. The biggest feeder-bridge and auto road to the south is 637-meters long, 7.5-meters wide with 2 lanes, while the other two have a length of 170-meters and 270-meters, and width of 7.5-meter and 8.5-meter, respectively, with one lane each. China Railway 20th Bureau Group Co. Ltd. was the contractor responsible for implementation. A formal groundbreaking ceremony took place on May 31, 2017. However, construction did not begin until April 15, 2018. The project was completed on September 16, 2019.