Active Mixed AidData Chinese Aid

China Eximbank provides $29.3 million preferential buyer’s credit for Ulaanbaatar Railway Underpass Design and Construction Project (Linked to Umbrella Record ID#49148)

$29.39M USD

Funder	Export-Import Bank of China (China Eximbank)
Recipient Organization	Government of Mongolia
Country	Mongolia
Start Date	Nov 28, 2022
End Date	Jun 02, 2033
Duration	3,839 days
Number of Grantees	1
Roles	Recipient
Data Source	AidData Chinese Aid
Grant ID	`66276`

Grant Description

China Eximbank provides $29.3 million preferential buyer’s credit for Ulaanbaatar Railway Underpass Design and Construction Project On November 10, 2015, China Eximbank and the Government of Mongolia signed a general loan agreement regarding the utilization of a $1 billion preferential buyer's credit (PBC) for various projects (as captured via Umbrella Record ID#49148).

📋 Loan / Grant Terms

💰 Loan Amountagreement

📅 Maturity20 years

⏳ Grace Period7 years

💹 Interest Rate2%

Then, on November 28, 2022, China Eximbank and the Government of Mongolia signed a $29,393,000 subsidiary loan (PBC) agreement [CHINA EXIMBANK PBC NO. (2022) 17 TOTAL NO. (566)] for the Ulaanbaatar Railway Underpass Design and Construction Project.

The borrower was expected to use the proceeds of the loan to finance 95% of the cost of a $30,940,000 EPC (commercial) contract [MoF20211217001-01] between the Capital City Governor's Office, the Ministry of Finance of Mongolia, and a consortium consisting of China Tiesiju Civil Engineering Group Co., Ltd, China Railway International Group Co., Ltd, and China Machinery Industry Construction Group Inc. which was signed on September 30, 2022.

The purpose of this project is to reduce traffic congestion by constructing four cross-railway underpasses — located to the right side of the Tavan Shar railway crossing in Songinokhairkhan District; the Central Geological Laboratory railway intersection in Songinohairkhan district; the railway in front of Hermes center within Bayangol district; and the intersection between Narnii Road and Ikh Toiruu Street — and associated ancillary facilities in the capital city of Ulaanbaatar.

The underpasses will go underneath the China-Mongolia-Russia trans-continent railway.

China Tiesiju Civil Engineering Group Co., Ltd, China Railway 4th Bureau Co., Ltd, China Railway International Group Co., Ltd, and China Machinery Industry Construction Group Inc. are the contractors responsible for project design and implementation. A design competition for the various underpasses was organized in December 2019.

After receiving feedback from citizens, the Government of Mongolia’s Department of Urban Development and Development announced that it would make final decisions about the locations of the underpasses and pedestrian bridges. Project design work was originally expected to reach completion by May 2023.

On March 30, 2023, the Government of Mongolia met its 5% counterpart financing commitment under the PBC agreement by making a $464,1000 payment to China Tiesiju Civil Engineering Group Co., Ltd. Then, on July 5, 2023, construction began.

📋 Staff Comments

This project is also known as the Ulaanbaatar Underground Crossover Project, the Ulaanbaatar Pedestrian Bridge Project, the Tunnel Project, and the Detailed Design and Construction of the Railway Underpass Project in Ulaanbaatar City. The Mongolian project title is Нүхэн гарц төсөл or Дэд бүтэц төсөл - Нүхэн гарц төсөл. The Chinese project title is 地下人行通道项目 or 蒙古乌兰巴托跨铁路地下通道项目.
The China Eximbank loan for this project is not included in the Overseas Development Finance Dataset that Boston University’s Global Development Policy Center published in December 2020.
The November 28, 2022 PBC (loan) agreement can be accessed in its entirety via https://www.dropbox.com/s/osbhxycf1yt8l7p/Mongolia%202022%20China%20Eximbank%20Loan%20Agreement%20for%20Detailed%20Design%20and%20Construction%20of%20the%20Railway%20Underpass%20Project%20in%20Ulaanbaatar%20City%20Project.pdf?dl=0.
The September 30, 2022 commercial contract can be accessed in its entirety via https://www.dropbox.com/s/y0g9rdwcg3w6du0/Mongolia%202022%20China%20Eximbank%20Loan%20Agreement%20for%20Detailed%20Design%20and%20Construction%20of%20the%20Railway%20Underpass%20Project%20in%20Ulaanbaatar%20City%20Project%20--%20Underlying%20Commercial%20Contract.pdf?dl=0.
The November 10, 2015 general loan agreement can be accessed in its entirety via https://www.dropbox.com/scl/fi/6517ecol3fwzuqo536c54/Government-of-Mongolia-and-China-Eximbank-General-Loan-Agreement-November-2015.pdf?rlkey=9r8cibj3kt0v3d891n6hy33rb&dl=0. A May 4, 2017 amendment to the November 10, 2015 general loan agreement can be accessed in its entirety via https://www.dropbox.com/scl/fi/1055dq0pvwpxm45fk2fmk/Government-of-Mongolia-and-China-Eximbank-General-Loan-Agreement-2015_May_4_2017_Amendment-1.pdf?rlkey=hbj7c8wgm6udzr0icw8tufnwa&dl=0.

📚 Sources & References

About Delivery of Official Letter
DEVELOPMENT COOPERATION BETWEEN THE GOVERNMENT OF MONGOLIA AND THE GOVERNMENT OF PEOPLE’S REPUBLIC OF CHINA
GOVERNMENT FOREIGN LOAN USAGE QUARTERLY DATA
Groundbreaking ceremony for China-funded railway underpass project held in Mongolia
Loan Agreement for the Railway Underpass Project in Ulaanbaatar City Financed by China Eximbank Signed in the Presence of Chinese and Mongolian Leaders
Mongolia’s President Khurelsukh discussed regional cooperation with Chinese President Xi Jinping on official vist
Railway underpass to be constructed in four locations
USS 29,393,000.00 PREFERENTIAL BUYER'S CREDIT LOAN AGREEMENT Individual Loan Agreement on Detailed Design and Construction of the Railway Underpass Project in Ulaanbaatar City, БНХАУ-ын нэг тэрбум ам.долларын зээлээр хэрэгжүүлэх төслийн жагсаалтыг баталлаа, БНХАУ-ЫН ХОНГеЛЕЛТТЭЙ ЗЭЭЛЭЭР УЛААНБААТАР ХОТОД ТемеР ЗАМ ДООГУУР АВТО ЗАМЫН НУХЭН ГАРЦ ШИНЭЭР БАРИХ ТЕСЕЛ, ЗАСГИЙН ГАЗРЫН ГАДААДЫН ЗЭЭЛ, ТУСЛАМЖИЙН ХӨРӨНГӨӨР 2018 ОНЫ ТӨСВИЙН ЖИЛД ХЭРЭГЖҮҮЛЭХЭЭР ТӨЛӨВЛӨЖ БУЙ ТӨСӨЛ, АРГА ХЭМЖЭЭ, МОНГОЛ УЛСЫН ЗАСГИЙН ГАЗРЫН ТОГТООЛ ХӨТӨЛБӨР БАТЛАХ ТУХАЙ Дугаар 140, Улаанбаатар хотын хамгийн том нүхэн гарцын авто замын хөдөлгөөнийг нээлээ, ХЯТАДЫН БУЦАЛТГҮЙ ТУСЛАМЖ БА МОНГОЛЫН ЗЭЭЛСЭН ӨРИЙН ДҮН, “Нүхэн болон гүүрэн гарц”-ийн загвар зураг төсөл боловсруулах уралдаанд ирсэн бүтээлүүдэд иргэдээс санал авч байна, “Нүхэн болон гүүрэн гарц”-ны загвар зураг төсөл боловсруулах уралдааныг дахин зарлалаа, “Улаанбаатар хотод төмөр зам доогуур авто замын нүхэн гарц шинээр барих” төслийн нэмэлт ажил
中企承建的乌兰巴托市铁路地下通道项目举行奠基仪式
蒙古国政府通过了中国政府十亿美元贷款项目清单
进出口银行融资支持的蒙古乌兰巴托跨铁路地下通道项目贷款协议在中蒙两国领导人见证下签署 Loan applications and disbursements are still being received and processed as the projects continue to evolve. Ongoing monitoring and evaluation are in place to ensure project continuity.