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

Project narrative

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 Record ID#73097.