China pledges to loan 1.5 billion TZS interest-free for a Housing Construction Project in Zanzibar
Pledged amount
$ 4811736.265781597
Adjusted pledged amount
$ 4811736.265781597
Constant 2021 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.
Summary
Funding agency [Type]
China Ministry of Commerce [Government Agency]
Recipient
Tanzania
Sector
Other social infrastructure and services (Code: 160)
Flow type
Loan
Level of public liability
Central government debt
Infrastructure
Yes
Category
Project lifecycle
Description
On May 1, 2000, China earmarked Tshs1.5 billion for an interest-free loan to construct houses for the people in the Isles. It is a part of a Tshs11 billion loan to be given to Zanzibar for other projects. Around 40-70 percent of the urban population in Tanzania live in poorly serviced squatter settlements. The rest of the loan will be going to mainland projects. It is unclear whether these funds were ever formally committed and then disbursed.
Additional details
Interest-free loans are typically agreed upon through ETCAs which are financed by the Chinese Ministry of Commerce. Since loan terms for the interest-free loan are unavailable, AidData has set maturity period to 20 years by default and grace period to 10 years by default per China's Foreign Assistance White Paper (http://www.cidca.gov.cn/2018-08/06/c_129925064_3.htm) which states that the maturity period of interest-free loans is 20 years, with a drawdown period of 5 years, grace period of 5 years, and repayment over 10 years. AidData treats the drawdown period as providing 5 years of additional grace.
Number of official sources
1
Number of total sources
3
Details
Cofinanced
No
Direct receiving agencies [Type]
Government of Tanzania [Government Agency]
Loan Details
Maturity
20 years
Interest rate
0.0%
Grace period
10 years
Grant element (OECD Grant-Equiv)
71.6021%