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Overview

CATIC provides $27 million supplier credit for Phase 2 of the Rural Electrification Equipment Acquisition Project (Linked to Record ID#62609)

Commitments (Constant USD, 2023)$54,146,993
Commitment Year•2005Country of Activity•ZimbabweDirect Recipient Country of Incorporation•ZimbabweSector•EnergyFlow Type•Loan

Status

Project lifecycle

Completion

Pipeline: PledgePipeline: CommitmentImplementationCompletion

Timeline

Key dates

Commitment date
Jan 1, 2005
Start (planned)
Jan 1, 2005
End (actual)
Mar 6, 2006

Geospatial footprint

Map overview

Visualizes the AidData-provided feature geometry for this project.

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This project was undertaken in Harare and its suburbs. More detailed location information can be found at: https://www.openstreetmap.org/node/282335934

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 companies

  • China National Aero-Technology Import & Export Corporation (CATIC)

Receiving agencies

State-owned companies

  • Zimbabwe Electricity Supply Authority (ZESA)

Collateral providers

Government Agencies

  • Government of Zimbabwe

Loan desecription

CATIC provides $27 million supplier credit for Phase 2 of the Rural Electrification Equipment Acquisition Project

Interest type•Unknown

Collateral

The loan was collateralized withi foreign currency proceeds from tobacco export sales, which were deposited into an escrow account.

Narrative

Full Description

Project narrative

In 2005, China National Aero-Technology Import and Export Corporation (CATIC,中国航空技术进出口总公司) signed a $27,015,002 supplier's credit agreement with the Government of Zimbabwe for Phase 2 of the Rural Electrification Equipment Acquisition Project. According to a Parliament of Zimbabwe report, the loan matured in February 2016. CATIC allowed its borrower to repay the loan by depositing the foreign currency proceeds from tobacco sales into an escrow account. Upon taking a tobacco contract to raise foreign currency, Zesa was able to sign the agreement, and work was expected to start in early 2016. However, Phase 2 of the project reportedly ran into problems during implementation because of foreign exchange shortages. Phase 2 was officially completed and handed over to the ZESA authorities on March 6, 2006.

Staff comments

1. The Chinese project title is 第二阶段农村电网项目 or 的农村电网改造 or 津农村电网改造工程. 2. Several sources refer to a “$40 million” supplier credit, but these references may refer to the aggregate value of both CATIC supplier credits for Phase 1 and Phase 2 of the Rural Electrification Equipment Acquisition Project (See: Zesa goes farming and China Blasts Sanctions). 3. ZESA used an entity called the Rural Electrification Fund (REF) to facilitate the purchase of equipment from CATIC. 4. The financing for Phase 1 of the Rural Electrification Equipment Acquisition Project between CATIC and the Government of Zimbabwe is captured via Record ID#62609.