First Automobile Works provides $2.3 million supplier credit for acquisition of 50 buses
Commitment amount
$ 5238599.880339263
Adjusted commitment amount
$ 5238599.88
Constant 2021 USD
Summary
Funding agency [Type]
China FAW Group Co., Ltd. (FAW) [State-owned Company]
Recipient
Zimbabwe
Sector
Transport and storage (Code: 210)
Flow type
Loan
Level of public liability
Other public sector debt
Infrastructure
No
Category
Project lifecycle
Description
In late 2004, First Automobile Works (FAW) provided a $2.3 million supplier credit to Zimbabwe United Passenger Company (Zupco) — parastatal company in Zimbabwe that operates for urban and long-distance bus routes — for the purchase of 50 buses to supplement the public transport system in Harare. Then, in March 2005, Zupco actually purchased the 50 buses from China. In total, 400 buses were to be purchased, with 100 kits to refurbish old buses and 250 additional buses to be purchased at a later date. However, FAW produces the buses without adequately accounting for local transportation conditions in Zimbabwe. By 2006, the entire fleet had stopped working and the further bus purchases were suspended.
Number of official sources
0
Number of total sources
10
Details
Cofinanced
No
Direct receiving agencies [Type]
Zimbabwe United Passenger Company (ZUPCO) [State-owned Company]