Project ID: 1931

Chinese Government cancels $37.5 million USD of the Government of Tanzania's outstanding TAZARA debt obligations (Linked to #73097)

Commitment amount

$ 46120506.8002979

Adjusted commitment amount

$ 46120506.8

Constant 2021 USD

Summary

Funding agency [Type]

China Ministry of Commerce [Government Agency]

Recipient

Tanzania

Sector

Action relating to debt (Code: 600)

Flow type

Debt forgiveness

Infrastructure

No

Category

Intent

Development (The next section lists the possible statuses.)

Commercial

Development

Representational

Mixed

Financial Flow Classification

ODA-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

2011-01-19

Actual complete

2011-01-19

Description

In 1967, the Chinese Government provided an RMB 494 million interest-free loan to the Government of Zambia and an RMB 494 million interest-free loan to the Government of Tanzania for the construction of the 1860 km Tanzania–Zambia Railway (TAZARA), stretching from Dar‑es‑Salaam to Kapiri Mposhi. The railway, largely aimed at facilitating copper exports from land‑locked Zambia, was completed in 1975. It was the largest Chinese Government-financed construction project in Africa at the time. Then, on 19 January 2011, the Government of Zambia and the Government of Tanzania were both in arrears on their respective loans, and the Chinese Government agreed to cancel 50% of their outstanding debt obligations. More specifically, the Chinese Government agreed to forgive 50% of the Government of Tanzania outstanding debt obligations (approximately $37.5 million USD) associated with the Tanzania–Zambia Railway (TAZARA) Construction Project. The debt forgiveness for Zambia is captured in project #73097.

Additional details

This project is not marked as umbrella because the original debt is not captured in our dataset, so there is no risk of double counting.

Number of official sources

10

Number of total sources

17

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Details

Cofinanced

No

Direct receiving agencies [Type]

Government of Tanzania [Government Agency]

Implementing agencies [Type]

Tanzania Ministry of Finance and Planning [Government Agency]