Completed Mixed AidData Chinese Aid

China Eximbank provides $20.08 million preferential buyer’s credit for 67km Tosontsengel-Uliastai Road Construction Project (Linked to Record ID#40435)

$20.09M USD

Funder	Export-Import Bank of China (China Eximbank)
Recipient Organization	Government of Mongolia
Country	Mongolia
Start Date	Sep 17, 2018
End Date	May 06, 2031
Duration	4,614 days
Number of Grantees	1
Roles	Recipient
Data Source	AidData Chinese Aid
Grant ID	`66277`

Grant Description

China Eximbank provides $20.08 million preferential buyer’s credit for 67km Tosontsengel-Uliastai Road Construction Project On May 31, 2006, the Mongolian Parliament provided in-principle approval to the Ministry of Finance to borrow $500 million from China Eximbank.

Then, on June 16, 2011, China Eximbank and the Government of Mongolia signed a general loan agreement regarding the utilization of a $500 million preferential buyer's credit (PBC) for various projects (see Umbrella Record ID#40435).

📋 Loan / Grant Terms

💰 Loan Amountagreement

📅 Maturity20 years

⏳ Grace Period7 years

💹 Interest Rate2%

Nearly seven years later, on September 17, 2018, U.Enkhtuvshin, Deputy Prime Minister of Mongolia, and Zhong Shan, Commerce Minister of China, signed a subsidiary China Eximbank loan (PBC) agreement [CHINA EXIMBANK PBC 2018 (22) TOTAL NO. (479)] worth $20,089,779.69 for the 67 km Tosontsengel-Uliastai Road Construction Project.

The proceeds of the PBC were to be used by the borrower to finance 100% of the $20,089,779.69 cost of a commercial contract [contract number 31 and project number ABZ-2018] between Mongolia’s Ministry of Road and Transportation and China Communications Construction Company, Ltd. (CCCC), which was signed on March 12, 2018.

The purpose of the project is to construct a 67 km paved road between Tosontsengel and Uliastai.

Upon completion, the road will connect the center of Zavkhan aimag with the capital city and pass through Zagastai pass, a difficult pass of the Tarvagatai mountain range.

The project has two components: a 28.11 km stretch road known as PK0 + 000-PK28 + 110 and 36.37 km stretch of road known as PK28 + 110-PK64 + 480.

China Communications Construction Company, Ltd. (CCCC), Arj Road LLC and Tum Arvijikh LLC are the contractors responsible for project implementation. A protocol agreement on the project was signed on August 30, 2016. Land acquisition issues were subsequently addressed through a government resolution that was issued on May 2, 2017.

Project implementation was originally expected to commence in 2018. It was not until June 7, 2019 that the contractors were given permission to begin construction. Construction activities began in July 2019. As of November 15, 2019, the project had achieved a 34.5% completion rate. As of May 21, the project had achieved a 76.5% completion rate.

As of August 27, 2021, the project had achieved a 98% completion rate. The project was ultimately completed on June 27, 2022. The project’s originally scheduled completion date was October 30, 2020. Implementation delays resulted from unresolved funding issues for the project's supervisory consulting services.

📋 Staff Comments

The Mongolian project title is Улиастай-Тосонцэнгэл чиглэлийн 67 км автозам барих төсөл. The Chinese project title is 扎布汗省公路项目.
The China Eximbank loan that supported this project is not included in the Overseas Development Finance Dataset that Boston University’s Global Development Policy Center published in December 2020.
The bidding invitation for the project can be accessed in its entirety via https://www.dropbox.com/s/psoc69o655pxjam/%D0%A2%D0%91%D0%91-%D0%A2%D0%BE%D1%81%D0%BE%D0%BD%D1%86%D1%8D%D0%BD%D0%B3%D1%8D%D0%BB-%D0%A3%D0%BB%D0%B8%D0%B0%D1%81%D1%82%D0%B0%D0%B9%20%D1%87%D0%B8%D0%B3%D0%BB%D1%8D%D0%BB%D0%B8%D0%B9%D0%BD%2067%20%D0%BA%D0%BC%20%D1%85%D0%B0%D1%82%D1%83%D1%83%20%D1%85%D1%83%D1%87%D0%B8%D0%BB%D1%82%D1%82%D0%B0%D0%B9%20%D0%B0%D0%B2%D1%82%D0%BE%20%D0%B7%D0%B0%D0%BC-%D1%88%D1%83%D1%83%D0%B4%20%D0%B3%D1%8D%D1%80%D1%8D%D1%8D%20%D0%B1%D0%B0%D0%B9%D0%B3%D1%83%D1%83%D0%BB%D0%B0%D1%85.pdf?dl=0.
The loan (PBC) agreement can be accessed in its entirety via https://www.dropbox.com/s/18gg8m0ey59m3ss/Mongolia%202018%20China%20Eximbank%20Loan%20for%20Construction%20of%20Tosontsengel-Uliatsai%20Direction%2067km%20Road%20Project.pdf?dl=0

📚 Sources & References

China Eximbank-financed Highway Project in Mongolia’s Zavkhan Province Handed Over to the Mongolian Government
Construction of asphalt road in Zagastai Pass at 80%
Mongolia-China agree to collaborate in increasing meat export
Road between Tosontsengel and Uliastai to be built with Chinese soft loan
Tosontsengel-Uliastai road
US$ 20,089,779.69 PREFERENTIAL BUYER'S CREDIT LOAN AGREEMENT Individual Loan Agreement on Construction ofTosontsengel-Uliastai Direction 67 km Road Project
Zagastai Pass construction nears completion, ЗАГАСТАЙН ДАВААНД 67 КМ АВТОЗАМ БАРИХ ЗЭЭЛИЙН ХЭЛЭЛЦЭЭРТ ГАРЫН ҮСЭГ ЗУРЛАА, Загастайн давааны 67 км автозам барих төслийн Тусгайлсан зээлийн хэлэлцээрийг баталгаажууллаа, Зам, тээврийн хөгжлийн сайдын багцын 2018 оны эхний хагас жилийн Худалдан авах ажиллагааны тайлан, ЗАСГИЙН ГАЗРЫН ГАДААДЫН ЗЭЭЛ, ТУСЛАМЖИЙН ХӨРӨНГӨӨР 2018 ОНЫ ТӨСВИЙН ЖИЛД ХЭРЭГЖҮҮЛЭХЭЭР ТӨЛӨВЛӨЖ БУЙ ТӨСӨЛ, АРГА ХЭМЖЭЭ, Тосонцэнгэл-Улиастай чиглэлийн 67 км авто замын ажлын гүйцэтгэл 76.5 хувьтaй байна, Тосонцэнгэл-Улиастай чиглэлийн 67 км автозамын хэлэлцээрт гарын үсэг зурлаа, Тосонцэнгэл-Улиастай чиглэлийн 67 км хатуу хучилттай авто зам, УЛИАСТАЙ-ТОСОНЦЭНГЭЛ ЧИГЛЭЛИЙН 67 КМ АВТОЗАМ БАРИХ ТӨСӨЛ, “Тосонцэнгэл-Улиастай чиглэлийн Загастайн давааны 67 км автозам барих” төслийн хэлэлцээрт гарын үсэг зурав, “ТОСОНЦЭНГЭЛ-УЛИАСТАЙ ЧИГЛЭЛИЙН ЗАГАСТАЙН ДАВААНЫ 67 КМ ХАТУУ ХУЧИЛТТАЙ АВТО ЗАМЫН ДУУСГАЛ /ЗАВХАН/” ТӨСЛИЙН БАРИЛГЫН АЖЛЫН ГҮЙЦЭТГЭГЧИЙГ СОНГОН ШАЛГАРУУЛАХ ТӨСӨЛ, АРГА ХЭМЖЭЭНИЙ ҮНИЙН САНАЛ АВАХ БАРИМТ БИЧИГ
中国进出口银行融资支持的蒙古国扎布汗省公路项目顺利移交
扎嘎斯泰山丘公路建成通车，21个省通过硬面路与首都相连
蒙古国总理奥云额尔登出席67公里公路项目通车典礼 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.

All Grantees

Government of Mongolia

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