Overview

First Automobile Works provides $2.3 million supplier credit for acquisition of 50 buses

Commitments (Constant USD, 2023)$4,838,593

Commitment Year•2004Country of Activity•ZimbabweDirect Recipient Country of Incorporation•ZimbabweSector•Transport And StorageFlow Type•Loan

Status

Project lifecycle

Completion

Pipeline: PledgePipeline: CommitmentImplementationCompletion

Timeline

Key dates

Commitment date: Jan 1, 2004

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 FAW Group Co., Ltd. (FAW)

Receiving agencies

State-owned companies

Zimbabwe United Passenger Company (ZUPCO)

Loan desecription

First Automobile Works provides $2.3 million supplier credit for acquisition of 50 buses

Interest type•Unknown

Narrative

Full Description

Project narrative

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.