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Overview

China Eximbank provide $89.5 million preferential buyer’s credit for Shargun Coal Mine Modernization Project (Linked to Record ID#40326)

Commitments (Constant USD, 2023)$95,239,311
Commitment Year•2017Country of Activity•UzbekistanDirect Recipient Country of Incorporation•UzbekistanSector•EnergyFlow Type•Loan

Status

Project lifecycle

Implementation

Pipeline: PledgePipeline: CommitmentImplementationCompletion

Timeline

Key dates

Commitment date
Jan 1, 2017
Start (actual)
May 23, 2018
First repayment (originally scheduled)
Dec 31, 2021
Last repayment (originally scheduled)
Dec 27, 2036

Geospatial footprint

Map overview

Visualizes the AidData-provided feature geometry for this project.

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The Shargun coal mine is located in the Sukhardaryinskaya oblast. More detailed locational information can be found at https://www.mindat.org/loc-218926.html and https://www.openstreetmap.org/way/465950345 and https://www.openstreetmap.org/way/495666770

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 Uzbekistan

Implementing agencies

Government Agencies

  • Government of Uzbekistan

Guarantors

Government Agencies

  • Government of Uzbekistan

Loan description

China Eximbank provide $89.5 million preferential buyer’s credit for Shargun Coal Mine Modernization Project

Grace period•5 yearsGrant element•53.1012%Interest rate (t₀)•2%Interest type•Fixed Interest RateMaturity•20 years

Narrative

Full Description

Project narrative

In 2017, China Eximbank and China Development Bank together provided $105,510,000 in debt financing for the Shargun Coal Mine Modernization Project. China Eximbank provided a $89.5 million preferential buyer’s credit (PBC) loan and China Development Bank provided a $16,010,000 loan (captured via Record ID#40326). Record ID#72686 captures the China Eximbank PBC loan, which was finalized on May 12, 2017 and carries the following terms: 20 year maturity, 5 year grace period, and a 2% interest rate. The Government of Uzbekistan provided a sovereign guarantee for this loan. The Shargun Coal Mine Modernization Project — also known as the “Modernization of JSC “Shargunkumir” Project or 了沙尔贡煤矿现代化 — seeks to replace the existing technologies and production at Baisun and Shargun coal deposits and bring project capacity to 900 thousand tons of coal per year. It also involves the modernization of the system of coal transportation. China Coal Technology & Engineering Group (CCTEG) is the contractor responsible for project implementation and its work is being overseen by Uzbekcoal JSC. Through its contract with Uzbekcoal JSC, CCTEG is responsible for delivering two mechanized complexes with production capacity of 450,000 tons per year each on a turnkey basis. China Railway Tunnel Group Co., Ltd. is also involved in project implementation. As of September 12, 2017, China Coal Technology & Engineering Group Corp., and China Railway Tunnel Group Co., Ltd., began the preparatory work for this project. Project implementation officially began on May 23, 2018. The project was expected to reached completion in 2020. The project implementation had been delayed due to the rise of COVID-19 and flight suspension of various construction workers. The planned project duration was projected to be 38 months. The renovation project is a consortium formed by the China Railway Tunnel and the China Coal and Science Industry. Du Yaobo, general manager of Nanjing Design Institute delivered a speech before the launching ceremony. From August 10-11, the three machine ground joint commissioning of the project's working face was conducted. On January 11th, 2024, it was reported that the mine had been put into operation.