Narrative
Full Description
Project narrative
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 2% interest rate, a 4.5-year grace period, and a 10-year maturity (estimated final maturity date: August 18, 2025). 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 Record 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: 2030). 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: 2031). 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: 2032). The 2019 rescheduling is captured via Record ID#96027. The 2020 rescheduling is captured via Record ID#96029. The 2022 rescheduling is captured via Record ID#96030.