Bank of China provides RMB 932.12 million loan for Amur River Rail Bridge Project (Linked to Record ID#85164)

Project narrative

In 2015, the Heilongjiang Branch of the Export-Import Bank of China and the Heilongjiang Branch of Bank of China issued an RMB 1.3212 billion syndicated loan to Heilongjiang Amur River Bridge Development and Construction Co., Ltd. (黑龙江阿穆尔河大桥开发建设有限公司) -- a special purpose vehicle -- for the Amur River Rail Bridge Project. This loan carried a 16 year maturity. Its interest rate and grace period are unknown. The Export-Import Bank of China contributed approximately RMB 400 million to the syndicated loan (which is captured via Record ID#85164) and Bank of China contributed approximately RMB 932.12 million to the syndicated loan (which is captured via Record ID#85166). Heilongjiang Amur River Bridge Development and Construction Co., Ltd. (黑龙江阿穆尔河大桥开发建设有限公司) also made an RMB 1.3212 billion equity investment in the Amur River Rail Bridge Project. On June 5, 2016, Heilongjiang Amur River Bridge Development and Construction Co., Ltd. was granted a 16 year concession agreement to design, construct, finance, and operate the Amur River Rail Bridge. After the 16-year concession period ends and the syndicated loan is repaid, the ownership of the project will reportedly return to the Chinese Government and the Russian Government. The Amur River Rail Bridge Project involves the construction of a 2,215 meter bridge across the Heilong River (that is known as Amur River in Russia), which will connect Tongjiang city in Heilongjiang province with Nizhneleninskoye in Russia. The Amur River Rail Bridge project aims to create a new trade corridor between the Nizhneleninskoye Jewish Autonomous Region in Russia and the Heilongjiang Province in China. Another major use of the bridge will be to transport iron ore from the Kimkan open-pit mine in the Jewish Autonomous Oblast that is owned by IRC Limited. Upon completion, the bridge is expected to transport more than 3 million metric tons of cargo and 1.5 million passengers per year. Tongjiang Railway Company Co., Ltd. — a subsidiary of China Railway Engineering Corporation — is the EPC contractor responsible for the construction of the Chinese side of the bridge. LLC Rubicon (a Russian company) is the EPC contractor responsible for construction of the Russian side of the bridge. [Note: On October 7, 2014: IRC Limited sold LLC Rubicon — a wholly owned subsidiary responsible for the Russian side of the Amur River Rail Bridge Project. — to RUB 174 million (approximately US$4.4 million) to subsidiaries of the Russian Direct Investment Fund and China Investment Corporation. Under the terms of the acquisition agreement, IRC Limited will benefit from guaranteed capacity over the bridge of 3.2 million tons per year (approximately 30% of the total bridge transport capacity).] A foundation stone laying ceremony for the bridge took place on February 26, 2014. Construction began on December 24, 2016. The Chinese side of the bridge was completed on October 13, 2018. The bridge was completed on August 17, 2021.