Project ID: 23231

China Eximbank pledges to loan $587.35 million USD to Tanzania for the Dar es Salaam Container Terminal Expansion Project

Pledged amount

$ 598218731.0

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]

Export-Import Bank of China [State-owned Policy Bank]

Recipient

Tanzania

Sector

Transport and storage (Code: 210)

Flow type

Loan

Concessional

Yes

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

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

Pledge

Commitment

Implementation

Completion

Suspended

Cancelled

Milestones

Commitment

Estimated.

2012

Description

On 15 April 2010, the Tanzania Port Authority and China Communication Construction Company (CCCC) signed a memorandum of understanding (MoU) for a feasibility study. It was carried out in May 2010 and produced the Dar es Salaam Container Terminal Expansion Project (or Dar es Salaam Harbor Upgrade Project). This project involves the construction of two more berths (13 and 14), the dredging of an entrance channel, and the creation of a container stacking yard to better handle container traffic.Some time in or around 2012, China Eximbank pledged to offer a $587.35 million USD concessional loan to the Government of Tanzania for the Dar es Salaam Container Terminal Expansion Project. The loan terms include a 2% interest rate and 20 year maturity. This loan covers 85% of the total project cost of $691 million USD. The Government of Tanzania covered the remaining 15%. However, in 2013, the CCCC contract was cancelled on overpricing grounds and a Congolese company known as Impala Africa was selected as the new contractor responsible for project implementation. Ephraim Mgawe, Director General of the TPA, was later sentenced to five years imprisonment in January 2017 for the fraudulent awarding of the Dar es Salaam Harbor Upgrade Project to the China Communications Construction Company, Ltd, in order to secure a China Eximbank loan. CCCC later brought litigation against the Tanzania Port Authority over the contract. It took the position that the Permanent Secretary of the Ministry of Transport decided to call for new tenders before termination of the contract and awarded the tender to contractors other than the CCCC on grounds that the Ministry of Transport had been directed by the Public Procurement Regulatory Authority not to deal with the company as it was among those banned by the World Bank. Moreover, according to Trade Mark East Africa, World Bank, DFID, and TPA stepped up to finance this project. Therefore, because CCCC did not end up carrying out this project, the China Eximbank loan was probably called off as well.

Additional details

PBC facilities usually entail China covering 85% of the contract, but it is unclear whether that is true in this case. The Daily News reports this exact figure for the CEXIM loan amount: $523,131,015.97 USD. This is unconfirmed by official sources.

Number of official sources

6

Number of unofficial sources

13

Download the dataset

Details

Cofinanced

No

Receiving agencies [Type]

Government of Tanzania [Government Agency]

Implementing agencies [Type]

China Communications Construction Co., Ltd. (CCCC) [State-owned Company]; Tanzania Port Authority [Government Agency]

Loan type

Concessional

Maturity

20 years

Interest rate

2.0%

Grant element

43.74577683%

Gurarantee provided

No

Insurance provided

No