Project ID: 30315

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

Commitment amount

$ 47462318.66

Constant 2017 USD

Summary

Funding agency [Type]

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

Recipient

Namibia

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

2013-05-16

Actual start

Completion

2015

2015-05-16

Planned

2015-08-19

Actual

Description

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 and the Omafo—Outapi section of the DR3608 Highway. The Chinese project title is 的纳米比亚北方公路项目MR67.

Number of official sources

15

Number of unofficial sources

8

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Details

Cofinanced

No

Receiving agencies [Type]

Government of Namibia [Government Agency]

Implementing agencies [Type]

China Machinery Engineering Corporation (CMEC) [State-owned Company]

Loan type

Concessional

Maturity

20 years

Interest rate

2.0%

Grace period

5 years

Grant element

53.10116182%

Gurarantee provided

No

Insurance provided

No