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Overview

Chinese Government commits $9.4 million interest-free loan — through ETCA — for unspecified infrastructure projects (Linked to Record ID#30381)

Commitments (Constant USD, 2023)$10,187,888
Commitment Year•2012Country of Activity•MozambiqueDirect Recipient Country of Incorporation•MozambiqueSector•Unallocated/unspecifiedFlow Type•Loan

Status

Project lifecycle

Pipeline: Commitment

Pipeline: PledgePipeline: CommitmentImplementationCompletion

Timeline

Key dates

Commitment date
Sep 22, 2012
First repayment
Dec 29, 2021
Last repayment
Dec 27, 2031

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

Government Agencies

  • Government of Mozambique

Loan desecription

Chinese Government commits $9.4 million interest-free loan — through ETCA — for unspecified infrastructure projects (Linked to Record ID#30381)

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

Narrative

Full Description

Project narrative

On September 22, 2012, the Government of Mozambique and the Chinese Government signed two Economic and Technical Cooperation Agreements (ETCA) worth approximately $23.7 million for an unspecified set of infrastructure projects. One of the agreements was for a monetary grant worth approximately $14.3 million USD and the other was for an interest-free loan worth approximately $9.4 million. Record ID#30381 captures the grant commitment and Record ID#30379 captures the interest-free loan agreement. Victor Borges, Mozambqiue’s Minister of Fisheries, and Li Rongcan, China’s Assistant Minister of Commerce, signed the agreements.

Staff comments

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.