China Eximbank agrees to provide loan for Phase 2 of the Northern Railway Line Extension Project (Linked to projects #1314, #61034, and #61036)
Constant 2017 USD
Not recommended for aggregates
This project is not recommended for use in creating aggregated sums. See the documentation for more information about this criteria.
Funding agency [Type]
Export-Import Bank of China [State-owned Policy Bank]
Transport and storage (Code: 210)
In December 2007, China Eximbank and the Government of Namibia signed an RMB 1 billion concessional loan framework (recorded in the linked project #1314), which identified several projects that would be funded according to a consistent set of terms and conditions (including the following borrowing terms: 4.27% interest rate, 15 year maturity, and 5 year grace period). One of these projects was the Phase 2 of the Northern Railway Line Extension Project, which is recorded in this project. RMB 645 million was reportedly set aside for three projects: Phase 2 of the Northern Railway Line Extension Project (recorded in this project), the Oshakati State Hospital Renovation Project (recorded in the linked project #61034), and the Namibian Broadcasting Corporation Renovation Project (recorded in the linked project #61036). The breakdown of this funding between these three projects is unknown, so the RMB 645 million commitment for the three projects is recorded in this project.Phase 2 of the Northern Railway Line Extension Project involved a 62 km railway extension in Northern Namibia from Ondangwa to Oshikango. According to the Namibia’s Ministry of Works and Transport, Phase 2 of the Northern Railway Line Extension Project is now complete. However, it appears that this project was ultimately implemented without funding from China Eximbank. The project was ready for implementation and Namibia’s Ministry of Works and Transport entered into a rail supply contract with the China Machinery and Equipment Import and Export Corporation (CMEC), with Teko Trading CC as the local representative. However, after receiving an overpriced quote from CMEC for completion of the project, the Government of Namibia suspended its contract with CMEC. Then, in July 2009, Namibia’s Permanent Secretary of Finance Calle Schlettwein announced that he had notified the Chinese Government that the borrowing terms of the RMB 1 billion loan facility (recorded in project #1314) were too financially onerous for the Government of Namibia. He told a local newspaper that 'We did not suspend any agreements, we just told them that the terms were too burdensome for our financial situation.’
AidData has coded this project as a pledge rather than a commitment as it is not clear that a subsidiary loan agreement was ever signed for Phase 2 of the Northern Railway Line Extension Project.
Number of official sources
Number of unofficial sources
Receiving agencies [Type]
Government of Namibia [Government Agency]
Implementing agencies [Type]
China Machinery and Equipment Import and Export Co (CMEIE) [State-owned Company]