China Eximbank provides RMB 150 million loan for Phase 1 of Section 2 (Dutlwe-Morwamosu) of the Letlhakeng-Kang Road Project (Linked to Project #109 and #119)

In November 20, 2005, China Eximbank and the Government of Botswana signed an RMB 160 million loan framework agreement for Section 2 (Dutlwe-Morwamosu) of the Letlhakeng-Kang Road Project. On April 24, 2006, China Eximbank and the Government of Botswana signed an RMB 150 million loan agreement for Phase 1 of Section 2 (Dutlwe-Morwamosu) of the Letlhakeng-Kang Road Project. This loan carries the following terms: 16 year maturity, 6 year grace period, and 3% interest rate. Its final maturity date is March 21, 2022. Then, in 2007, the China Eximbank and the Government of Botswana signed an RMB 136,637,850 loan agreement for Phase 2 of Section 2 (Dutlwe-Morwamosu) of the Letlhakeng-Kang Road Project. This loan carries the following terms: 15 year maturity, 6 year grace period, and 3% interest rate. Its final maturity date is September 21, 2022. This project captures the RMB 150,000,000 loan for Phase 1 of Section 2 (Dutlwe-Morwamosu) of the Letlhakeng-Kang Road Project, while project 109 captures the RMB 136,637,850 loan for Phase 2 of Section 2 (Dutlwe-Morwamosu) of the Letlhakeng-Kang Road Project. Section 2 (Dutlwe-Morwamosu) of the Letlhakeng-Kang Road Project cost approximately $40 million in total. It involved the construction of a 134 road segment from Dutlwe to Morwamosu that passes through Kweneng District, Southern District, and Kgalagadi District. More specifically, it involved the construction of a 95.74 km main road (9.7 meters wide), 7.07 kilometers of additional roads (7.0 meters wide), 31 km of connecting roads, and 119 culverts. Section 1 of the larger 257 km Letlhakeng-Kang Highway Project was also financed by China Eximbank (see Project ID#119). China Construction Botswana Co. Ltd. (中建博茨瓦纳有限公), a subsidiary of China State Construction Engineering Corporation, was the contractor responsible for the implementation of Phases 1 and 2 of Section 2 (Dutlwe-Morwamosu) of the Letlhakeng-Kang Road Project. Construction began in April 2006 and ended in 2009. A road opening ceremony took place in Boonen within Dutlwe District on November 27, 2010.

Additional details

1. This project is also known as the Section 2 (Dutlwe-Kang/Morwamosu) of the Letlhakeng-Kang Road Project or 134 km Letlhakeng-Kang-Dutwe-Morwamosu Highway Project or 134 km Letlhakeng-Morwamosu Highway Project. 2. The Chinese project title is 莱特哈肯--克昂公路项目 or 莱特哈肯-康公路（二期). 3. In the database of Chinese loan commitments that SAIS-CARI released in July 2020, it records the China Eximbank loan for Phase 1 of Section 2 (Dutlwe-Morwamosu) of the Letlhakeng-Kang Road Project. However, it does not include the China Eximbank loan for Phase 2 of Section 2 (Dutlwe-Morwamosu) of the Letlhakeng-Kang Road Project. Also, for the China Eximbank loan that supported Phase 1 of Section 2 (Dutlwe-Morwamosu) of the Letlhakeng-Kang Road Project, SAIS-CARI records a maturity of 15 years and a grace period of 3 years. AidData records the borrowing terms (15 year maturity, 6 year grace period, and 3% interest rate) that are reported by Botswana’s Ministry of Finance in its “Annual Statement of Accounts (ASA) for the Financial Year Ended 31 March 2016. 4. Parliament's authorization of the loan agreement can be accessed via https://www.botswanalaws.com/StatutesActpdf/2006Actpdf/CONSTRUCTION%20OF%20THE%20DUTLWE%20-%20MORWAMOSU%20ROAD%20(LOAN)%20(RATIFICATION)%20ACT,%2019%20OF%202006.pdf

Number of official sources

21

Number of total sources

31