China Eximbank provides $11.6 million loan for Food Reserve Agency (FRA) Storage Sheds Project

Project narrative

In June 2009, the China Eximbank and the Government of Zambia signed an $11.6 million loan agreement for the Food Reserve Agency (FRA) Storage Sheds Project. According to the Government of Zambia's 2009 Economic Report, the loan carried the following borrowing terms: a 2% interest rate, a 15-year maturity, a 5-year grace period, a 0.5% commitment fee, and a 0.75% management fee. China Eximbank disbursed $6.73 million in 2009 and $4.94 million in 2010. The purpose of this project was to construct, maintain, and rehabilitate nine grain storage sheds in four provinces (Central province, Eastern province, Southern province, and Western province) managed by the country’s Food Reserve Agency (FRA). It involved the construction of two new shallow circular silos with the grain storage capacity of 50,000 tons, the construction of one new shallow circular silo with the grain storage capacity of 25,000 tons, and the restoration and reconstruction of one silo with the grain storage capacity of 25,000 tons. The ultimate objective of the project was to increase the security of the country’s grain reserves. China CAMCE Engineering Co., Ltd. was the contractor responsible for implementation. In December 2007, a feasibility study for the project was undertaken. Then, works officially began on August 10, 2009. The precise date of project completion is unknown and as of July 16th, 2014, the project was still stalled.