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Overview

Chinese Government issues N$30 million interest-free loan to TransNamib for acquisition of 4 diesel locomotives and 1 DMU passenger train

Commitments (Constant USD, 2023)$9,800,680
Commitment Year•2004Country of Activity•NamibiaDirect Recipient Country of Incorporation•NamibiaSector•Transport And StorageFlow Type•Loan

Status

Project lifecycle

Completion

Pipeline: PledgePipeline: CommitmentImplementationCompletion

Timeline

Key dates

Commitment date
Jan 1, 2004
Start (actual)
Jul 25, 2004
End (actual)
Jul 25, 2004
First repayment
Dec 29, 2013
Last repayment
Dec 27, 2023

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

Government Agencies

  • China Ministry of Commerce

Receiving agencies

State-owned companies

  • TransNamib Holdings Limited

Implementing agencies

State-owned companies

  • China Railway Materials Group Corporation
  • China South Locomotive & Rolling Stock Corporation Limited (CSR)

Loan desecription

Chinese Government issues N$30 million interest-free loan to TransNamib for acquisition of 4 diesel locomotives and 1 DMU passenger train

Grace period•10 yearsGrant element•75.0516%Interest rate (t₀)•0%Interest type•Fixed Interest RateMaturity•20 years

Narrative

Full Description

Project narrative

In 2004, the Chinese Government and TransNamib — a state-owned railway enterprise in Namibia — signed a N$30 million interest-free loan to facilitate TransNamib’s acquisition of 4 diesel locomotives and 1 DMU passenger train. China Railway Materials Export and Import Company (now known as China Railway Materials Group Corporation) and China South Locomotive & Rolling Stock Corp., Ltd. were the contractors responsible for implementation of the project. This project was completed on July 25, 2004, when the products were shipped from China to Namibia. A few weeks after their handover, the locomotives reportedly suffered from "chronic mechanical problems," lack of training among local mechanics, and lack of local parts. The locomotives were later sold in 2014.

Staff comments

The loan is not included in the database of Chinese loan commitments that SAIS-CARI released in July 2020. Since loan terms for the interest-free loan are unavailable, AidData has set maturity period to 20 years by default and grace period to 10 years by default per China's Foreign Assistance White Paper (http://www.cidca.gov.cn/2018-08/06/c_129925064_3.htm) which states that the maturity period of interest-free loans is 20 years, with a drawdown period of 5 years, grace period of 5 years, and repayment over 10 years. AidData treats the drawdown period as providing 5 years of additional grace.