Narrative
Full Description
Project narrative
On November 10, 2015, China Eximbank and the Government of Mongolia signed a general loan agreement regarding the utilization of a $1 billion preferential buyer's credit (PBC) for various projects (as captured in Record ID#49148). Under the terms of the general loan agreement, all subsidiary (individual) loan agreements for specific projects carry identical borrowing terms: a 20 year maturity, a 7 year grace period, a 2% interest rate, a 0% default (penalty) interest rate, a 0% management fee, and a 0.25% commitment fee. Then, on May 12, 2017, China Eximbank and the Government of Mongolia signed a $21,383,428.77 subsidiary loan (PBC) agreement [CHINA EXIMBANK PBC 2017 (17) TOTAL NO. (443)] for the Sonsgolong Bridge and Bayanzurkh Bridge Construction Project. The PBC (loan) went into effect on October 16, 2017. The proceeds of the PBC were to be used by the borrower to finance 100% of the $21,383,428.77 cost of a (1) commercial contract [UBC-2016-01] between the Capital City Road Department of Mongolia and Beijing Uni-Construction Group Co., Ltd. (BUCC), which was signed on July 18, 2016; and a (2) consulting contract [UBC-2017-2/c] between the Capital City Road Department of Mongolia and Guangzhou Wanan Construction Supervision Co., Ltd, which was signed on April 7, 2017. The purpose of the project is to construct the 289.4 meter Sonsgolong Bridge over the Tuul River and the 321 meter Bayanzurkh Bridge over the Tuul River. It also involved (a) the expansion and renovation of a carriageway that is connected to the Sonsgolong Bridge, and (b) the construction of a 3 km one-lane road from Gachuurt junction to the Bayanzurkh toll plaza. BUCC was the contractor responsible for project implementation. Guangzhou Wanan Construction Supervision Co., Ltd was responsible for project supervision. A groundbreaking ceremony for the Bayanzurkh Bridge (Баянзүрхийн гүүр) took place on June 2, 2017. A groundbreaking ceremony for the Sonsgolong Bridge (Сонсголонгийн гүүр) took place on June 5, 2017. A project completion ceremony took place on April 25, 2019, and according to a project database (http://project.zasag.mn/) maintained by the Government of Mongolia's National Development Department, the project had achieved a 100% completion rate as of 2020.
Staff comments
1. This project is also known as the Construction of a new reinforced concrete bridge over the Tuul River at Bayanzurkh 288 m and Sonsgolong 289.4 m. The Chinese project title is 建设的跨图拉河两座钢筋混凝土桥项目 or 巴音朱日赫桥、桑斯格楞桥 or 跨图拉河钢筋混凝土桥. The Mongolia project title is “Туул гол дээгүүр Баянзүрхийн 321 у/м болон Сонсголонгийн 289.4 у/м төмөрбетон гүүрийг шинээр барих” төсөл. 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/6dmzjstbkw2x0y3/Mongolia%202017%20China%20Eximbank%20Loan%20for%20Construction%20project%20of%20321%20u%3Am%20Bayanzurkhi%20and%20289.4%20u%3Am%20reinforced%20concrete%20bridge%20over%20Tuul%20River.pdf?dl=0. 4. The commercial contract can be accessed in its entirety via https://www.dropbox.com/s/oq4cuh6ig7jwpab/Commercial%20Contract%20for%20Construction%20project%20of%20321%20u%3Am%20Bayanzurkhi%20and%20289.4%20u%3Am%20reinforced%20concrete%20bridge%20over%20Tuul%20River.pdf?dl=0.