China Eximbank provides a RMB 122 million loan for the acquisition of excavators, bulldozers and dredgers (Linked to Record ID#39957)

Project narrative

On June 15, 2004, the Export-Import Bank of China signed an agreement to provide a RMB 300 million concessional loan to the Republic of Uzbekistan for various projects (captured in #39957). Then, on July 18, 2005, China Eximbank signed a RMB 122 million ($14.8 million USD) concessional loan agreement with the National Bank for Foreign Economic Affairs of the Republic of Uzbekistan (NBU) for the acquisition of excavators, bulldozers and dredgers. NBU on-lent the proceeds of the loan to Uzbekistan's Ministry of Agriculture and Water Resources, which also served as the executive agency responsible for project implementation. The loan carried the following terms: 20 year maturity (final maturity in the first half of 2025), 5 year grace period, 2% interest rate, 0.2% commitment fee, and 0.2% management fee. Repayments were to be made in U.S. dollars at the current change rate of USD to Chinese yuan the day of each repayment. The President of Uzbekistan authorized the Ministry of Finance to, after implementing its prescribed procedure, issue a guarantee from the Government of Uzbekistan to China Eximbank on behalf of the payment obligations of NBU and a guarantee to NBU on the payment obligations of the Ministry of Agriculture and Water Resources. This project sought to finance the acquisition of 78 excavators, 11 bulldozers, and six dredgers, as well as the purchase of spare parts and initial training for the vehicles, in order to increase the supply of irrigated water in the Republic of Karakalpakstan and the Khwarazm (Khorezm) region. The contractor responsible for project implementation was China National Machinery and Equipment Import and Export Corporation