DUSHANBE, August 21, Asia-Plus — Issues related to cooperation between the Tajik government and China’s state bank, Exim Bank (the Export-Import Bank of China), were discussed today in Dushanbe at a meeting of President Emomali Rahmon with China’s Exim Bank president Li Ruogu.
Speaking to journalists after a meeting with President Rahmon, Mr. Li said that President Rahmon had highly appraised the present level of Tajik-Chinese relations and expressed hope for further expansion of cooperation with Exim Bank.
The Exim Bank president reminded that at present, under government-to-government agreements, the bank is funding on preferential terms three projects in Tajikistan – rehabilitation of the highway from Dushanbe vial Khujand to the Uzbek border and construction of two power grids.
“President Rahmon also offered cooperation on implementation of projects in the fields of education, hydropower, extraction of coal, as well as textile industry,” the Exim bank top manager said, noting that they are ready to consider these proposals.
Mr. Li also noted that of $900 million provided by Exim Bank in preferential loans to member nations of the Shanghai Cooperation Organization (SCO), Tajikistan accounts for $600 million.
Asked about the possibility of Exim Bank’s funding construction of the Zarafshon hydropower plant in Tajikistan, the Exim Bank president stated, “As body subordinate to the Chinese government, we carry out only its orders and instructions, and therefore, we do not speak about financing of any concrete project until intergovernmental agreement is signed,” said Li, “If there is proposal form the government we are ready for funding.”
“Only after signing of an agreement between the governments, we will receive feasibility study for a project and only after studying it we may start financing of the project,” the bank top manager said.
We will recall that China”s Sinohydro Corporation has been awarded a contract to build a large hydroelectric plant in northern Tajikistan. The relevant contract was signed on January 17 in Beijing, on the sidelines of Tajik President Emomali Rahmon”s visit to China. The project will reportedly be funded through a $200 million, low-interest Chinese loan. The Zarafshon plant should produce some 600 million kilowatt hours of electricity a year.
The Export-Import Bank of China was founded in 1994. It is a fully government-owned policy bank under the direct leadership of the State Council of China. I ts current international credit ratings are compatible to those of the sovereignty ratings of China. At present, the Bank has 10 business branches and 5 representative offices in China and 3 overseas representative offices in South Africa, Paris and St. Petersburg. So far, the Bank has set up a correspondent banking network of 510 foreign banks. Among the Exim Bank business scopes are export credit (including export seller”s credit and export buyer”s credit), loans to overseas construction contract and loans to overseas investment projects, Chinese government concessional loan, international gurantee, onleding loans of foreign governments and financial institutions.
