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Overview

China Eximbank provides $46.6 million loan for MR67 Omakange-Ruacana Road Upgrading Project

Commitments (Constant USD, 2023)$50,505,911
Commitment Year2012Country of ActivityNamibiaDirect Recipient Country of IncorporationNamibiaSectorTransport And StorageFlow TypeLoan

Status

Project lifecycle

Completion

Pipeline: PledgePipeline: CommitmentImplementationCompletion

Timeline

Key dates

Commitment date
Jan 1, 2012
Start (actual)
May 16, 2013
End (planned)
May 16, 2015
End (actual)
Aug 19, 2015
First repayment (originally scheduled)
Dec 30, 2016
Last repayment (originally scheduled)
Dec 27, 2031

Geospatial footprint

Map overview

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This project involved the upgrading of an 85 km segment of the Main Road (MR67) road between Omakange and Ruacana by converting it from gravel to bitumen standard. Omakange, Kunene; Ruacana, Kunene; Omafo, Ohangwena; Outapi, Omusati. More detailed location information can be found at: https://www.openstreetmap.org/directions?engine=fossgis_osrm_car&route=-18.14557%2C14.29220%3B-17.43908%2C14.36252#map=10/-17.7742/14.3069

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

State-owned Policy Banks

  • Export-Import Bank of China (China Eximbank)

Receiving agencies

Government Agencies

  • Government of Namibia

Implementing agencies

State-owned companies

  • China Machinery Engineering Corporation (CMEC)

Loan description

China Eximbank provides $46.6 million loan for MR67 Omakange-Ruacana Road Upgrading Project

Grace period5 yearsGrant element53.1012%Interest rate (t₀)2%Interest typeFixed Interest RateMaturity20 years

Narrative

Full Description

Project narrative

In 2012, China Eximbank and the Government of Namibia signed a $46.6 million loan agreement for the MR67 Omakange-Ruacana Road Upgrading Project. This loan carried the following terms: 20 year maturity, 5 year grace period, and 2% interest rate. The purpose of the project was to upgrade an 85km segment of the Main Road (MR67) road between Omakange and Ruacana by converting it from gravel to bitumen standard. Namibia’s Deputy Permanent Secretary of Works and Transport, Balbiena Pienaar, awarded the construction contract to China National Machinery and Equipment Import and Export (CMEC). Approximately 15% of the contract value for this project was reportedly set aside for Nambian SMEs. Over 500 jobs were also expected to be created for the local people. On May 16, 2013, the President of Namibia, Hifikepunye Pohamba, gave a speech at the groundbreaking ceremony for the project. It was originally envisaged that construction would take 24 months to complete, suggesting a project completion date around May 2015. However, the actual date of project completion was in June 2015. A project completion and road opening ceremony was held on August 19, 2015. This project is also known as Section 1 of the Namibia Northern Highway Upgrading Project. The Namibia Northern Highway Upgrading Project is divided into two sections: the Omakange—Ruacana section of the MR67 Highway (Record ID: 30315) and the Omafo—Outapi section of the DR3608 Highway (Record ID: 60994). The Chinese project title is 的纳米比亚北方公路项目MR67.