Chinese Government provides $6 million grant for MA60 Aircraft Acquisition Project as part of ‘buy two, get one free’ deal (linked to #62953)

On 4 November, 2004, China National Aero-Technology Import and Export Corporation (CATIC) and the Government of Zimbabwe signed a $12 million supplier credit agreement for the MA60 Aircraft Acquisition Project (See: China Blasts Sanctions). The proceeds from the supplier credit were use to purchase two MA-60 aircrafts from China Aviation Industry Corporation (AVIC) as part of a larger ‘buy two, get one free’ deal. On 4 May, 2005, the two 60-seat propeller planes were handed over to the Government of Zimbabwe (See: A Research Report on Zimbabwe). The planes were planned to fly as part of the Air Zimbabwe fleet with routes to Lusaka, Lilongwe, Beira and Lubumbashi routes in the region, and the Kariba and Victoria Falls routes locally. The linked project #62953 captures the supplier credit from CATIC.In July 2005, China’s Ministry of Commerce and the Government of Zimbabwe signed an Economic & Technical Cooperation Agreement, which provided a $6 million grant for the acquisition of the third MA60 aircraft from AVIC (See: Country Seals Economic Deals with China). On December 23, 2005, the third plane was handed over to the Government of Zimbabwe (See: 国产飞机首次批量出口 17架新舟60合同已签订 and 我国自行研制的新舟60飞机实现批量出口). It was expected to service Hwange and the Transfrontier Parks among other routes in a bid to promote tourism in the country. The Chinese project title is 架新舟60基本型飞机 or 3架新舟60飞机的购机协议.The Government of Zimbabwe ultimately defaulted on its outstanding obligations to CATIC under the supplier credit. Also, as of 2018, all three MA60 aircraft (operated by the state-run Air Zimbabwe) were ‘grounded’ (i.e. taken out of service).

Number of official sources

8

Number of unofficial sources

22