Project ID: 109

China Eximbank provides RMB 136.6 million loan for Phase 2 of Section 2 (Dutlwe-Morwamosu) of the Letlhakeng-Kang Road Project (Linked to Project ID#119 and Project ID#105)

Commitment amount

$ 28049575.63

Constant 2017 USD

Summary

Funding agency [Type]

Export-Import Bank of China [State-owned Policy Bank]

Recipient

Botswana

Sector

Transport and storage (Code: 210)

Flow type

Loan

Concessional

Yes

Category

Intent

Development (The next section lists the possible statuses.)

Commercial

Development

Representational

Mixed

Financial Flow Classification

ODA-like (The next section lists the possible statuses.)

Official Development Assistance

Other Official Flows

Vague (Official Finance)

Flows categorized based on OECD-DAC guidelines

Project lifecycle

Status

Completion (The next section lists the possible statuses.)

Pledge

Commitment

Implementation

Completion

Suspended

Cancelled

Milestones

Implementation

2006

2006-09-01

Planned start

2006-04-01

Actual start

Commitment year

2007

Completion

2010

2010-11-27

Actual

NOTE: This project began implementation and then later secured financing from a Chinese funding agency to continue project implementation

Description

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. Project ID#105 captures the RMB 150,000,000 loan for Phase 1 of Section 2 (Dutlwe-Morwamosu) of the Letlhakeng-Kang Road Project, while Project ID#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. 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.

Additional details

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). The loan details can be found in the 'Annual Statement of Accounts For the Financial Year Ended 31 March 2016' and 'Government of Botswana External Debt Tables 2010' sources. 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.

Number of official sources

13

Number of unofficial sources

8

Download the dataset

Details

Cofinanced

No

Receiving agencies [Type]

Government of Botswana [Government Agency]

Implementing agencies [Type]

China Construction Botswana Co. Ltd. [State-owned Company]; Government of Botswana [Government Agency]

Loan type

Concessional

Maturity

15 years

Interest rate

3.0%

Grace period

6 years

Grant element

42.92865041%

Gurarantee provided

No

Insurance provided

No