Project ID: 30137

China Eximbank provides RMB 1.025 billion government concessional loan for Victoria Falls Airport Renovation and Expansion Project

Commitment amount

$ 165482438.7

Constant 2017 USD

Summary

Funding agency [Type]

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

Recipient

Zimbabwe

Sector

Transport and storage (Code: 210)

Flow type

Loan

Concessional

Yes

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

Completion (The next section lists the possible statuses.)

Pledge

Commitment

Implementation

Completion

Suspended

Cancelled

Milestones

Commitment year

2012

Implementation

2013

2012-04-05

Planned start

2013-04-12

Actual start

Completion

2016

2016-11-18

Actual

Geography

Description

On 5 April, 2012, China Eximbank signed an RMB 1,025,000,000 billion government concessional loan (GCL) agreement with the Government of Zimbabwe for the Victoria Falls Airport Renovation and Expansion Project (See: 2019 Blue Book Estimates of Revenue and Expenditure). The GCL carried the following terms: 20 year maturity, 5 year grace period, 2% interest rate, 0.5% management fee, and 0.5% commitment fee (See: SENATE HANSARD - 8 AUGUST 2012 VOL. 21 NO. 46). To facilitate loan repayment, the GCL agreement specifies that the borrower must deposit the proceeds from the revenue generated by Victoria Falls Airport and the passenger service charges generated from Harare Airport in an escrow account held by China Eximbank. This project involved an extension of an existing runway, the construction of a second 4,000 meter long runway, the construction of a 20,000 square meter new terminal, and the construction of a parking lot (See: China loans $162m towards refurbishing Zimbabwe airport). Upon completion, it was expected that Victoria Falls International Airport would be able to handle 1.2 million passengers a year and accommodate wide-bodied aircrafts such as 747s (See: China loans $162m towards refurbishing Zimbabwe airport).China Jiangsu International was the contractor responsible for implementation, and its work was overseen by the Civil Aviation Authority of Zimbabwe (See: Victoria Falls Airport renovations underway). On 12 April, 2013, construction began. The project was expected to take 30 months to complete. The project was completed and officially handed over to the Zimbabwean authorities on 18 November, 2016 (See: The Export-Import Bank loan brings Africa's first waterfall closer to the world). The Chinese project title is 维多利亚瀑布市机场改扩建 or 的维多利亚瀑布机场扩建项目 (See: The Export-Import Bank loan brings Africa's first waterfall closer to the world).Other agreements signed between 5-6 April, 2012 included a 31.5 million RMB agreement for provision of an outside broadcasting van for the Zimbabwe Broadcasting Corporation (see Project ID#30639), an ETCA worth RMB 80 million (see Project ID#30260), and a grant worth 4.5 million RMB for neonatal equipment (see Project ID#30638).

Additional details

Some sources characterize the face value of the China Eximbank loan as $162 million. AidData relies on the RMB 1,025,000,000 face value that is recorded by Zimbabwe’s Ministry of Finance and Economic Development in its 2019 Blue Book Estimates of Revenue and Expenditure. AidData records the maturity length this is reported in the 2019 Blue Book Estimates of Revenue and Expenditure and the grace period that was presented to Zimbabwe’s Parliament prior to loan ratification. In the database of Chinese loan commitments that it released in July 2020, SAIS-CARI does not identify the maturity length or grace period of this loan.

Number of official sources

9

Number of unofficial sources

12

Download the dataset

Details

Cofinanced

No

Receiving agencies [Type]

Government of Zimbabwe [Government Agency]

Implementing agencies [Type]

China Jiangsu International Economic and Technical Cooperation Company [State-owned Company]

Loan type

Concessional

Maturity

20 years

Interest rate

2.0%

Grace period

5 years

Management fee

0.5

Commitment fee

0.5

Grant element

53.10116182%

Gurarantee provided

No

Insurance provided

No

Collateralized/securitized

Yes

Collateral

The GCL was collateralized by making the borrower deposit the proceeds from the revenue generated by Victoria Falls Airport and the passenger service charges generated from Harare Airport in an escrow account held by China Eximbank.