Project ID: 17158

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

Commitment amount

$ 50883983.66

Constant 2017 USD

Summary

Funding agency [Type]

China National Aero-Technology Import & Export Corporation (CATIC) [State-owned Company]

Recipient

Zimbabwe

Sector

Energy (Code: 230)

Flow type

Supplier's Credit/Export Seller's Credit

Concessional

Vague

Category

Intent

Mixed (The next section lists the possible statuses.)

Commercial

Development

Representational

Mixed

Financial Flow Classification

OOF-like (The next section lists the possible statuses.)

Official Development Assistance

Other Official Flows

Vague (Official Finance)

Flows categorized based on OECD-DAC guidelines

Project lifecycle

Status

Completion (The next section lists the possible statuses.)

Pledge

Commitment

Implementation

Completion

Suspended

Cancelled

Milestones

Commitment year

2005

2005-01-01

Planned implementation start

Completion

2006

2006-03-06

Actual

Description

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.

Additional details

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

12

Number of unofficial sources

15

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Details

Cofinanced

No

Receiving agencies [Type]

Zimbabwe Electricity Supply Authority (ZESA) [State-owned Company]

Loan type

No Information

Gurarantee provided

No

Insurance provided

No

Collateralized/securitized

Yes

Collateral

CATIC allowed its borrower to repay the loan by depositing the foreign currency proceeds from tobacco sales into an escrow account.