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

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 Project ID#40326). Project 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.

Number of official sources

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