Project ID: 1906

China pledges to loan $400 million USD to Tanzania for Kiwira coal mine

Pledged amount

$ 521486005.7

Constant 2017 USD

Not recommended for aggregates

This project is not recommended for use in creating aggregated sums. See the documentation for more information about this criteria.

Summary

Funding agency [Type]

Unspecified Chinese Government Institution [Government Agency]

Recipient

Tanzania

Sector

Industry, mining, construction (Code: 320)

Flow type

Loan

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

Pipeline: Pledge (The next section lists the possible statuses.)

Pledge

Commitment

Implementation

Completion

Suspended

Cancelled

Milestones

Commitment year

2009

2009-08-01

Planned implementation start

Description

In 2009, then Prime Minister of Tanzania, Mizengo Pinda, announced that the Chinese government had pledged to provide a loan of $400 million USD to help address the Kiwira coal mine's (Chinese name: 基维拉煤矿) financial problems. In return, China would take 62% ownership and Tanzania would hold the remainder (38%). It is unclear if this deal was ever formalized in a signed financing agreement. Tanzania's 100% government-owned State Mining Corporation (STAMICO) and China National Complete Plant Import and Export Co., Ltd. (COMPLANT) were planned to be responsible for project implementation. Kiwira mine is run by the Kiwira Coal and Power Company, which is wholly owned by STAMICO.The construction of the Kiwira coal mine was initially undertaken in 1983 and completed until 1988. Coal production started in 1989 under STAMICO with technical support from the Chinese government. The generated 6MW of electricity. Then, in 2005, Kiwira was privatized and acquired by TanPower Resources Limited, a company made up of a consortium of local investors. However, as the mine performed poorly, the government decided to resume ownership in 2008, only to hand it back to STAMICO in 2013. This change in ownership delayed negotiations with the Chinese for this loan. STAMICO was reportedly still searching for investors to resume production and construct a 200 MW coal-fired power plant.

Number of official sources

6

Number of unofficial sources

8

Download the dataset

Details

Cofinanced

No

Receiving agencies [Type]

Tanzania State Mining Corporation (STAMICO) [State-owned Company]

Implementing agencies [Type]

China National Complete Plant Import & Export Corporation Group (COMPLANT) [State-owned Company]; Kiwira Coal & Power Ltd. [State-owned Company]; Tanzania State Mining Corporation (STAMICO) [State-owned Company]

Loan type

No Information

Gurarantee provided

No

Insurance provided

No