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Overview

Chinese Government provides RMB 60 million interest-free loan for rural road upgrades and acquisition of equipment for rural district councils

Commitments (Constant USD, 2023)$10,089,679
Commitment Year•2013Country of Activity•ZimbabweDirect Recipient Country of Incorporation•ZimbabweSector•Transport And StorageFlow Type•Loan

Status

Project lifecycle

Pipeline: Commitment

Pipeline: PledgePipeline: CommitmentImplementationCompletion

Timeline

Key dates

Commitment date
Feb 22, 2013
Start (planned)
Feb 22, 2013
First repayment
Dec 30, 2022
Last repayment
Dec 27, 2032

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 Zimbabwe

Loan desecription

Chinese Government provides RMB 60 million interest-free loan for rural road upgrades and acquisition of equipment for rural district councils

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

Narrative

Full Description

Project narrative

On 22 February, 2013, visiting Chinese Commerce Minister, Chen Deming, signed an agreement formally committing the China Ministry of Commerce's provision of a 60 million RMB (~$10 million USD) interest-free loan to the Zimbabwean Government for the purpose of purchasing road equipment for rural district councils. The current state of this project is unknown. This was one of four agreements signed on this day with the Zimbabwean Government in a move to further cement bilateral relations. The other three agreements include: Record ID#30650: A $2 million grant for agricultural equipment. Record ID#30639: A RMB 31.5 million grant to Zimbabwe Broadcasting Corporation for the provision of a broadcasting van. Record ID#30649: A pledge for a food aid donation.

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.