DUSHANBE, June 19, 2013, Asia-Plus — Tajikistan’s lower house (Majlisi Namoyandagon) of parliament has ratified two loan agreements signed with the Export-Import Bank of China (China Exim Bank).
We will recall that the Ministry of Finance of Tajikistan and China Exim Bank signed two loan agreements in Beijing on May 20 this year: 1) a loan agreement on implementation of the Safe City Project; and 2) a loan agreement on rehabilitation of a 500 kV substation “Regar” in Tajikistan.
A regular sitting of the fourth session of the Majlisi Namoyandagon of the fourth convocation, presided over by its head, Shukurjon Zuhurov, was held on June 19.
Speaking at the session, the Minister of Finance, Safarali Najmiddinov, noted that the Safe City Project provides for installation of cameras across Dushanbe for round-the-clock monitoring of movement at all important locations such as crossroads, streets and squares. An estimated budget for implementation of the project is 22 million USD. “The loan is repayable within twenty years due to fines that will be paid by traffic offenders,” the minister said.
Concerning the 500 kV substation “Regar,” Najmiddinov said that it was introduced into operation 37 years ago. “The substation is now in a very poor state,” said the minister. “A total cost of the project is 36.9 million USD, including 35.1 million USD that will be provided by China Exim Bank in the form of a preferential loan.”
Najmiddinov further added that Tajikistan has signed eleven loan and grant agreements for a total amount of some 899 million somoni, including seven grant agreements for a total amount of 460 million somoni.
The Export-Import Bank of China (China Exim Bank) is one of three institutional banks in China chartered to implement the state policies in industry, foreign trade, diplomacy, economy, and provide policy financial support so as to promote the export of Chinese products and services. Established in 1994, the bank is subordinated to the State Council.
The focus of the bank is to promote foreign trade and investment. Exim Bank is not limited though to concessional funding and commercial operations form the backbone of the bank. Commercial activity includes export credits mainly in the infrastructure fields (roads, power plants, oil and gas pipelines, telecom, and water projects) and investment loans for Chinese businesses to establish overseas in the energy, mining and industrial sectors.
Exim Bank does not publish figures for overseas loans. However, U.S. officials estimate that it finances more than the total export financing of the Group of Seven industrialized nations combined. The Financial Times estimates that in 2009 and 2010, China Exim Bank and China Development Bank (CDB) together signed loans of at least $110 billion to other developing country governments and companies, more than the World Bank over a similar period.
