Active Mixed AidData Chinese Aid

China Eximbank provides $249.5 million preferential buyer’s credit for Ulaanbaatar Central Wastewater Treatment Plant Construction Project (Linked to Record ID#69003)

¥249.57M RMB

Funder	Export-Import Bank of China (China Eximbank)
Recipient Organization	Mongolia Ministry of Finance
Country	Mongolia
Start Date	Jan 20, 2020
End Date	Jan 01, 2028
Duration	2,903 days
Number of Grantees	1
Roles	Recipient
Data Source	AidData Chinese Aid
Grant ID	`91197`

Grant Description

China Eximbank provides $249.5 million preferential buyer’s credit for Ulaanbaatar Central Wastewater Treatment Plant Construction Project On March 1, 2018, China Eximbank and the Government of Mongolia’s Ministry of Finance signed an RMB 1 billion government concessional loan (GCL) agreement for the Ulaanbaatar Central Wastewater Treatment Plant Construction Project.

📋 Loan / Grant Terms

📅 Maturity20 years

⏳ Grace Period7 years

💹 Interest Rate2%

Then, on January 20, 2020, China Eximbank and the Government of Mongolia’s Ministry of Finance signed a $249,574,613 preferential buyer’s credit (PBC) agreement [CHINA EXIMBANK PBC 2020 (1) TOTAL NO. (497)] for the Ulaanbaatar Central Wastewater Treatment Plant Construction Project.

📋 Loan / Grant Terms

📅 Maturity20 years

⏳ Grace Period7 years

💹 Interest Rate2%

It came into force on April 20, 2020.

The proceeds of the GCL are to be used by the borrower to finance a commercial contract with China Tiesiju Civil Engineering Group (CTCE) and Beijing Construction Engineering Group (BCEG).

The proceeds of the PBC are to be used by the borrower to finance 95% of the cost of a $262,710,119.53 commercial (EPC) contract (No. 26) with China Tiesiju Civil Engineering Group (CTCE) and Beijing Construction Engineering Group (BCEG), which was signed on February 1, 2019 and amended on March 29, 2019 (No. 53), May 15, 2019 (No. 2019/81), July 3, 2019 (No. 2019/129), and April 29, 2020 (No. 2020/101).

The purpose of the project is to construct a wastewater treatment plant — with a daily capacity of 250,000 cubic meters of wastewater — on a 40-hectare site in Ulaanbaatar’s 20th subdistrict of Songinokharkhan district. CTCE and BCEG were the EPC contractors responsible for project implementation.

A formal project commencement ceremony was held during Chinese Foreign Minister Wang Yi’s visit to Mongolia on August 27, 2018. Then, on February 28, 2019, a groundbreaking ceremony took place. Works were originally scheduled to last 36 months (expected completion date: February 28, 2022). However, project implementation stalled in mid-2020 due to the COVID-19 pandemic.

Then, in July 2020, 24 technicians arrived to guide CTCE employees stationed there to resume construction. Construction restarted in August 2020.

One month later, in September 2020, local engineering and technical staff were preparing the site for the construction of the first of the two biological treatment blocks. By August 2021, the project had achieved a 28 percent completion rate. Successful concrete pouring into the inner walls of three reaction tanks took place on March 31, 2022.

The wastewater plant is currently scheduled to be handed over and put into operation on February 28, 2025. To date, the project has reportedly employed 50 foreign workers and 450 Mongolian workers.

An Environmental Impact Assessment (EIA) for the project was conducted by Queen Nature LLC ("Хатан байгаль" ХХК) and approved on December 30, 2019.

📋 Staff Comments

This project is also known as the Central Wastewater Treatment Plant of Ulaanbaatar City Project or the New Central Waste Water Treatment Plant Construction Project in Ulaanbaatar City Project. The Chinese project title is 乌兰巴托中央污水处理厂 or 蒙古乌兰巴托市中央污水处理厂建设项目. The Mongolian project title is Улаанбаатар хотын төв цэвэрлэх байгууламжийг барих төсөл or УЛААНБААТАР ХОТЫН ТӨВ ЦЭВЭРЛЭХ БАЙГУУЛАМЖИЙГ ШИНЭЭР БАРИХ or Төв цэвэрлэх байгууламж.
The China Eximbank loan for this project is not included in the Overseas Development Finance Dataset published by Boston University’s Global Development Policy Center.
The PBC (loan) agreement can be accessed in its entirety via https://www.dropbox.com/s/saolzhmvvf6tiae/Mongolia%202020%20China%20Eximbank%20Loan%20for%20Construction%20of%20New%20Central%20Waste%20Water%20Treatment%20Plant%20in%20Ulaanbaatar%20City%20Project.pdf?dl=0.

📚 Sources & References

'Улаанбаатар хотын төв цэвэрлэх байгууламжийг шинээр барих төсөл'
Additional loan agreement with China enters into force
Additional loan agreement with China enters into force
Construction Minister visits new wastewater treatment plant construction site
CREC4-built sewage plant in Ulaanbaatar reaches new milestone
DRS Official Commitments from China Through 2021
Finance Minister of Mongolia signs loan agreement with China’s Exim Bank Vice President
Finance Minister signs loan agreement with China’s Exim Bank Vice President
Finance Minister signs loan agreement with China’s Exim Bank Vice President
FORMAL EPC CONTRACT FOR CONSTRUCTION OF NEW CENTRAL WASTE WATER TREATMENT PLANT IN ULAANBAATAR CITY
IDS_Average interest on new external debt commitments
Invitation for Bids For the Wastewater Recycling Plant Design-Build
THE FIRST AMENDMENT TO FORMAL EPC CONTRACT FOR CONSTRUCTION OF NEW CENTRAL WASTE WATER TREATMENT PLANT IN ULAANBAATAR CITY
THE FOURTH AMENDMENT TO FORMAL EPC CONTRACT FOR CONSTRUCTION OF NEW CENTRAL WASTE WATER TREATMENT PLANT IN ULAANBAATAR CITY
THE GOVERNMENT OF MONGOLIA US$500,000,000 10.875 PER CENT. NOTES DUE 2021 issued pursuant to the US$5,000,000,000 Global Medium Term Note Program
THE SECOND AMENDMENT TO FORMAL EPC CONTRACT FOR CONSTRUCTION OF NEW CENTRAL WASTE WATER TREATMENT PLANT IN ULAANBAATAR CITY
THE THIRD AMENDMENT TO FORMAL EPC CONTRACT FOR CONSTRUCTION OF NEW CENTRAL WASTE WATER TREATMENT PLANT IN ULAANBAATAR CITY
TRADE POLICY REVIEW MONGOLIA MINUTES OF THE MEETING Addendum
Ulaanbaatar New Wastewater Treatment Plant Project. Employer's Requirements
Ulaanbaatar New Wastewater Treatment Plant Project. Employer's Requirements
Ulaanbaatar New Wastewater Treatment Plant Project. Employer's Requirements
US $249,574,613.30 PREFERENTIAL BUYER'S CREDIT LOAN AGREEMENT Individual Loan Agreement on Construction of New Central Waste Water Treatment Plant in Ulaanbaatar City Project
US$ 249,574,613.30 PREFERENTIAL BUYER'S CREDIT LOAN AGREEMENT Individual Loan Agreement on Construction of New Central Waste Water Treatment Plant in Ulaanbaatar City Project
USS 249,574,613.50 PREFERENTIAL BUYER'S CREDIT LOAN AGREEMENT Individual Loan Agreement on Construction of New Central Waste Water Treatment Plant in Ulaanbaatar City Project, НАРЫН ХООРОНД БАЙГУУЛСАН УЛААНБААТАР ХОТЫН ТОВ ЦЭВЭРЛЭХ БАЙГУУЛАМЖИЙГ ШИНЭЭР БАРИХ ТЕСЛИЙН АЛБАН ЁСНЫ И ПИ СИ ГЭРЭЭ (FORMAL EPC CONTRACT), Улаанбаатар хотын төв цэвэрлэх байгууламжийг шинээр барих төслийн явц 85 хувьтай байна
乌兰巴托新污水处理厂将于八月投入使用 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.