China Eximbank provides RMB 250 million loan for Railway Equipment Acquisition Project

Project narrative

In November 2005, China Eximbank and the Government of Namibia’s Ministry of Finance signed an RMB 250 million loan agreement for a Railway Equipment Acquisition Project. Namibian President Hifikepunye Pohama and Chinese Politburo member Li Chang Chun witnessed the signing of the agreement. The loan carried an interest rate of 3%, a maturity of 15 years, and a grace period of 5 years. According to "Summary Report of the Auditor-General on the Account of the Government of Namibia for the Financial Year Ended 31 March 2014", the final maturity date of the loan is March 21, 2021. The Government of Namibia used the proceeds of the loan to on-lend to TransNamib (a state-owned railway enterprise in Namibia) in order to facilitate its acquisition of 17 diesel locomotives and approximately 207 train wagons. China Railway Materials Export and Import Company (now known as China Railway Materials Group Corporation) and China South Locomotive & Rolling Stock Corp., Ltd. were the contractors responsible for implementation of the project. On January 25, 2007, 207 train wagons were delivered to Namibia. Then, on June 4, 2007, a batch of (8) diesel locomotives was delivered to Namibia. As of May 2008, TransNamib reported that it had received all 17 diesel locomotives and they were all operational. This project is completed. Prior to this, China had sold and sent 4 locomotives to TransNamib, which reportedly suffered from "chronic mechanical problems," lack of training among local mechanics, and lack of local parts. These were later sold in 2014. Conversely, TransNamib reported that the latest 17 locomotives were operational. The Chinese project title is 车辆股份有限公司向纳米比亚出口17台机车的项目 or 南车出口纳米比亚铁路货车项目.