Belarus will receive a lax purpose loan.
Belarus has agreed with China on the modernization of Minsk National Airport, Deputy Prime Minister Anatol Kalinin told reporters in Minsk on Thursday.
The modernization of the airport's existing terminal and the construction of a new terminal and a second runway will cost no more than $600 million, Mr. Kalinin said.
The project will be carried out in cooperation with China's Tochmach and involve Belarusian and Chinese construction companies, he said.
By mutual consent, the subcontractor in charge of design work has been replaced, Mr. Kalinin said.
“An additional agreement is being negotiated,” he said. “We have also updated the technical specifications, but they haven't been changed drastically.”
The airport's terminal will be renovated before the 2014 World Ice Hockey Championship in Minsk to meet international functional requirements, Mr. Kalinin said.
Although the championship will be over by December 2014, the deadline for completing the second runway, the existing runway has sufficient capacity to receive all guests, he said.
Uladzimir Kascicyn, deputy director of the transport ministry's Aviation Department, announced on April 11 that Belarus would not hire a Chinese contractor for the modernization of Minsk National Airport over cost differences.
The official acknowledged that Belarus had expected a Chinese company to build a second runway and modernize the airport's terminal. “But we have ended cooperation so far,” he said.
Belarus intended to spend $600 million on the project, but the Chinese company put the cost of its services at $1,125 million and refused to settle for less, explained Dzmitry Mielikian, director general of the airport.
As a result, the aviation authorities decided to carry out a less ambitious project that will cost around $81 million, Mr. Mielikian said.
The Belarusian authorities said earlier that the main contractor in the project would be China Precision Machinery Import-Export Corporation.
Located 42 kilometers from Minsk, the airport was opened in 1982.
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