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Overview

China Eximbank provides RMB 489 million loan for Aircraft Purchase for International Operation Project

Commitments (Constant USD, 2023)$81,391,687
Commitment Year•2014Country of Activity•EthiopiaDirect Recipient Country of Incorporation•EthiopiaSector•Transport And StorageFlow Type•Loan

Status

Project lifecycle

Completion

Pipeline: PledgePipeline: CommitmentImplementationCompletion

Timeline

Key dates

Commitment date
Jan 1, 2014
First repayment (originally scheduled)
Dec 31, 2018
Last repayment (originally scheduled)
Dec 27, 2033

Stakeholders

Organizations involved in projects and activities supported by financial and in-kind transfers from Chinese government and state-owned entities

Ultimate beneficial owners

At least 25% host country ownership

Funding agencies

State-owned Policy Banks

  • Export-Import Bank of China (China Eximbank)

Receiving agencies

Government Agencies

  • Government of Ethiopia

Loan description

China Eximbank provides RMB 489 million loan for Aircraft Purchase for International Operation Project

Grace period•5 yearsGrant element•53.1012%Interest rate (t₀)•2%Interest type•Fixed Interest RateMaturity•20 years

Narrative

Full Description

Project narrative

In 2014, China Eximbank and the Government of Ethiopia signed an RMB 489,000,000 government concessional loan (GCL) agreement for the Aircraft Purchase for International Operation Project. The borrowing terms of the loan are unknown. However, it is known that the borrower was expected to use the proceeds of the loan to finance the acquisition of aircraft for international operation. The project’s precise commencement and completion dates are unknown. However, it is known that the project reached completion in 2014 and Ethiopian Airlines launched its first direct flight to Shanghai on March 29, 2014

Staff comments

1. This project is also known as the Air Craft Purchase for International Operation Project. 2. The borrowing terms of the GCL are unknown. For the time being, AidData assumes that China Eximbank standard GCL borrowing terms (20-year maturities, 5-year grace periods, 2% interest rates) apply. This issue warrants further investigation. 3. This China Eximbank loan was not included in the database of Chinese loan commitments that SAIS-CARI released in 2020 and re-released in 2021. Nor was it included it in the Chinese Loans to Africa (CLA) Database — that is maintained by Boston University's Global Development Policy Center — as of September 2024. 4. Ethiopian Airlines is a wholly state-owned company. It is the is state-owned flag carrier of Ethiopia. 5. More research is needed to determine if the Government of Ethiopia on-lent the proceeds of the loan to Ethiopian Airlines.