CATIC provides $27 million supplier credit for Phase 2 of the Rural Electrification Equipment Acquisition Project (linked to #62609)
Constant 2017 USD
Funding agency [Type]
China National Aero-Technology Import & Export Corporation (CATIC) [State-owned Company]
Energy (Code: 230)
Supplier's Credit/Export Seller's Credit
In 2005, China National Aero-Technology Import and Export Corporation (CATIC,中国航空技术进出口总公司) provided a $27,015,002 supplier credit to 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 (See: PARLIAMENT OF ZIMBABWE, Wednesday 10th February, 2016). CATIC allowed its borrower to repay the loan by depositing the foreign currency proceeds from tobacco sales into an escrow account. However, Phase 2 of the project reportedly ran into problems during implementation because of foreign exchange shortages (See: Zimbabwe Parliament Debates, Wednesday, 1st November, 2006). Phase 2 was officially completed and handed over to the ZESA authorities on 6 March, 2006 (See: Zimbabwe receives new electrical equipment from China). 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.The financing for Phase 1 of the Rural Electrification Equipment Acquisition Project between CATIC and the Government of Zimbabwe is captured in linked project #62609.
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. 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). ZESA used an entity called the Rural Electrification Fund (REF) to facilitate the purchase of equipment from CATIC.
Number of official sources
Number of unofficial sources
Receiving agencies [Type]
Zimbabwe Electricity Supply Authority (ZESA) [State-owned Company]
CATIC allowed its borrower to repay the loan by depositing the foreign currency proceeds from tobacco sales into an escrow account.