China Eximbank provides 5-year maturity extension on $48.5 million preferential buyer’s credit for 330/110/10 kV Minsk-Severnaya Substation Renovation Project ini 2019 (Linked to Project ID#67001)

On August 18, 2015, China Eximbank and the Government of Belarus signed a $48,339,072.53 preferential buyer’s credit (PBC] agreement [CHINA EXIMBANK No. PBC (2015) 11 (353)] for the 330/110/10 kV Minsk-Severnaya Substation Renovation Project. The PBC carries a 10 year maturity (estimated final maturity date: August 18, 2015). Its interest rate and grace period are unknown. The purpose of the project was to renovate a 110 kV high-voltage overhead transmission line located in Minsk District, Minsk Oblast (phase 1) and a 330kV Minsk-Severnaya substation. This project was also designed to support another China Eximbank-financed project: a $323 million PBC for the Power Distribution System for the Belarusian Nuclear Power Plant (BNPP) Project (captured in Project ID#42422). China Energy Engineering Group Planning & Engineering Co., Ltd. — a subsidiary of China Power Engineering Consulting Group Co Ltd. — was the contractor responsible for implementation. Phase 1 commenced in April 2017 and ended in December 2017. Phase 2 was ultimately completed on July 31, 2019. However, there is evidence that the PBC (loan) has underperformed vis-a-vis the lender’s original expectations. On or around September 16, 2019, the lender and borrower agreed to reschedule the PBC through a 5-year maturity extension (revised final maturity date: 2020). Then, on or around November 6, 2020, the lender and borrower agreed to reschedule the PBC through an additional 1-year maturity extension (revised final maturity date: 2021). Then, on or around February 21, 2022, the lender agreed to reschedule the PBC through an additional 1-year maturity extension (revised final maturity date: 2022).

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